- Investment required is around ₹5–7 lakhs, covering security deposit, setup, and working capital.
- Applicants must have 50–80 sq ft commercial space in a high-footfall area like markets or residential hubs.
- Application is processed through SBI-authorised TSPs such as Tata Indicash, Muthoot ATM, and India1 ATM.
- Franchise owners earn ₹8–15 per financial transaction and ₹2–5 per non-financial transaction.
- Average monthly earnings range from ₹45,000 to ₹80,000, depending on location and transaction volume.
- ROI is typically achieved in 18–24 months in metros and 24–30 months in tier-2/3 towns.
The SBI ATM franchise in India (2025) is a regulated business model offered through RBI-compliant Technology Service Providers like Tata Indicash, Muthoot ATM, and India1 ATM. With a setup cost of about ₹5–7 lakhs, entrepreneurs can operate an SBI-branded ATM and earn commissions on every transaction. Average monthly income ranges between ₹45,000 and ₹80,000, depending on city type and footfall. Backed by the trust of State Bank of India, the country’s largest public sector bank, this franchise is considered one of the most credible and low-risk investment opportunities in India.
Why does this guide matter?
This guide gives a step-by-step, numbers-first roadmap to launch an SBI ATM franchise in 2025. It is written for entrepreneurs who want clear instructions, legal context from RBI/SBI, and realistic earnings scenarios. Following this guide will help you make informed decisions and maximise your ROI.
What is an SBI ATM Franchise?
An SBI ATM franchise allows a site owner to host an SBI-branded ATM. SBI either places machines directly or via authorised TSPs. You do not buy the ATM; instead, you provide space, comply with operational requirements, and earn per-transaction payouts.
SBI ATM Franchise Cost (2025)
Here’s a breakdown of the approximate cost involved in setting up an SBI ATM franchise:
| Cost Component | Estimated Amount |
| Non-refundable Application Fee | ₹2,000 – ₹5,000 |
| Setup Cost (interiors, electricity, civil work) | ₹2 – ₹3 lakhs |
| Security Deposit (refundable) | ₹2 – ₹3 lakhs |
| Total Investment | ₹5 – ₹7 lakhs |
- Space Required: Minimum 50–80 sq. ft.
- Must be on ground floor with 24×7 access and power backup
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Investment Details
- Numbers vary by TSP and region. Expect a combination of one-time deposits and working capital.
- Total initial outflow: plan ₹3–6 lakh to be safe. This includes deposit, initial float, and site setup. (Source: Goodreturns )
- Security deposit: widely reported as ₹1.5–2.5 lakh for bank franchise type arrangements in many cases. Use a conservative figure ₹2 lakh as a planning base. (Source: Goodreturns )
- Working capital / Cash float: ₹2–4 lakh depending on expected daily withdrawals and reload cycles. Many operators recommend keeping enough cash to cover 10–15 days of withdrawals. (Source: Vetted Biz )
- Site setup & minor fittings: ₹25,000–₹75,000 (electrical, CCTV, signage).
- Monthly running costs: electricity, connectivity, security, maintenance and cash logistics; estimate ₹8,000–25,000 depending on location and whether you contract cash-in-transit (CIT) services.
SBI ATM Franchise Earning Model
SBI ATM franchises run on a transaction-based revenue-sharing model. That means the franchise owner earns money every time a customer uses the ATM, whether for cash withdrawal, balance inquiry, or other services.
1. Earnings Per Transaction
- Financial Transactions (Cash Withdrawals, Deposits): ₹8–₹15 per transaction (varies by TSP).
- Non-Financial Transactions (Balance Inquiry, Mini Statement, PIN Change): ₹2–₹5 per transaction.
- Payment comes directly from the authorised TSP (like Tata Indicash, Muthoot ATM, India1 ATM) on a monthly basis.
2. Example Calculation of Monthly Income
Let’s assume an SBI ATM in a Tier-1 city (high footfall):
| Transaction Type | Avg. Transactions per Month | Commission per Transaction | Monthly Earnings |
|---|---|---|---|
| Financial Transactions | 8,000 | ₹10 | ₹80,000 |
| Non-Financial | 2,000 | ₹2 | ₹4,000 |
| Total | 10,000 | — | ₹84,000 |
In a Tier-2/3 town, average transactions may drop to 4,000–6,000 per month, giving earnings in the range of ₹40,000–₹55,000.
3. Factors Affecting Income
- Location: Busy markets, transport hubs, and residential colonies generate higher transactions.
- ATM Uptime: SBI/TSPs require ≥95% uptime. Downtime reduces transactions, directly cutting income.
- Competition Nearby: If other ATMs are close, the average transactions per machine reduce.
- Security & Trust: Well-lit, safe ATMs attract more users (especially women and elderly).
- Digital vs. Cash Trends: Even with UPI, cash withdrawals in India are still high, especially in semi-urban/rural areas.
State Bank of India operates the largest ATM network in India with 64,000+ ATMs and ~12,000 ADWMs (cash-recycle machines) listed on SBI’s official pages as of 2025. (Source: State Bank of India )
4. Average Payback Period
- Investment Range: ₹5–7 lakhs (includes security deposit, setup, and working capital).
- Monthly Income: ₹45,000–₹80,000 depending on location.
- ROI / Break-Even: Usually 18–24 months in metros and 24–30 months in smaller towns.
5. Additional Earning Opportunities
- Advertisement Space: Some TSPs allow digital screen or wall ad placements inside/outside ATM booths.
- Cross-Selling Financial Products: Tie-ups with NBFCs or local insurance partners.
- Multi-Bank Transactions: White-label ATMs (via TSPs) serve multiple banks, increasing transaction volume.
Step-by-Step Guide to Start an SBI ATM Franchise in 2025
Step 1: Select a Suitable Site
- Find a 50–80 sq ft space in a high-footfall area.
- Ensure continuous electricity and backup.
- Choose a location near markets, stations, or busy roads.
- Confirm no competing ATMs within RBI’s prescribed distance.
- Take site photos and basic details for submission.
Step 2: Contact an Authorised TSP
- Approach an SBI-approved Technology Service Provider.
- Share site proposal and property details.
- Discuss cost, deposit, and payout structure.
- Verify TSP credentials from SBI’s official list.
- Submit initial application for review.
Step 3: Site Inspection
- TSP team visits the proposed location.
- Checks safety, visibility, and accessibility.
- Reviews space layout and installation feasibility.
- Confirms CCTV and security arrangements.
- Provides final approval or suggestions.
Step 4: Application & Agreement
- Fill out the official application form.
- Submit required documents (see below).
- Pay security deposit and processing fee.
- Review terms of revenue-sharing model.
- Sign the franchise agreement with TSP.
Step 5: Installation & Testing
- TSP delivers and installs the ATM machine.
- Ensure connectivity and uninterrupted power.
- ATM is tested with trial transactions.
- Branding and signage are added as per SBI guidelines.
- Compliance with RBI/SBI operational standards checked.
Step 6: Go-Live & Operations
- ATM is activated for public use.
- Cash loading and security protocols begin.
- TSP provides monitoring and support.
- Transactions and uptime are regularly tracked.
- Monthly earnings are credited after reconciliation.
Documents Required for SBI ATM Franchise (2025)
To apply successfully, you need to keep these documents ready:
- Identity Proof (Aadhaar, PAN, Voter ID, Passport)
- Address Proof (Electricity Bill, Ration Card, Rental Agreement)
- Property Documents (Ownership papers or landlord NOC)
- Bank Account Details (Cancelled cheque, passbook copy)
- Business Registration / GST Certificate (if applicable)
- Passport-size photographs
- Site photographs and layout plan
White Label ATMs vs SBI ATMs
| Feature | SBI ATM | White Label ATM (WLA) |
|---|---|---|
| Ownership | Bank/TSP | Non-bank operator licensed by RBI |
| Branding | SBI logo | Neutral or operator branding |
| Transaction fees | As per SBI tariffs | RBI guidelines; may charge interchange-based fees |
| Operations | Bank-integrated, CIT contracts | Operator handles full ops |
| Best use-case | Urban & commercial | Rural & semi-urban underserved areas |
SBI ATMs offer trust, stability, and brand recognition, while WLAs fill gaps in areas with low bank ATM penetration.
Earnings Sensitivity by Location
| Location | Avg Txns/day | Monthly Revenue (₹7/txn) | Net After Costs |
|---|---|---|---|
| Urban mall | 400 | ₹84,000 | ₹72,000 |
| Small-town market | 200 | ₹42,000 | ₹30,000 |
| Rural kiosk | 60 | ₹12,600 | Negligible |
Numbers are illustrative; always validate with TSP-provided historical data.
Benefits of an SBI ATM Franchise
- Passive income with low day-to-day involvement
- Trusted brand (SBI) with high transaction volume
- ATM operations managed by professionals (TSP)
- Minimal maintenance and hassle-free setup
- Long-term lease offers steady income
Pro Tips
- Track daily transactions and cash levels using a reporting dashboard.
- Negotiate deposit structure to free working capital in the first year.
- Optimise CIT schedules to reduce logistic costs.
- Document everything for RBI audits to prevent penalties.
Compliance and Risk Management
- Follow RBI & SBI ATM regulations.
- Ensure CCTV, fire safety, and regular reconciliation.
- Maintain proper documentation for audits.
- Use CIT services to meet cash stocking and denomination rules.
Key Takeaways
- Starting an SBI ATM franchise in India (2025) requires a minimum investment of ₹5–7 lakhs, depending on the location and TSP.
- Eligible applicants must own or lease 50–80 sq ft commercial space in a high-footfall area like markets, stations, or highways.
- The application process is routed through SBI’s authorised Technology Service Providers (TSPs) such as Tata Indicash, Muthoot ATM, or India1 ATM.
- Average monthly earnings range between ₹45,000 to ₹80,000, depending on transaction volume and uptime.
- Mandatory documents include ID proof, address proof, property papers, site photographs, and bank details for payouts.
- Site inspection, agreement signing, and installation usually take 30–45 days before the ATM goes live.
- Location choice is the biggest success factor, as metros and tier-1 cities offer higher transactions, while tier-2/3 towns see steady growth.
- The franchise operates on a revenue-sharing model where owners earn per transaction (financial & non-financial).
- All ATMs must comply with the RBI’s security and distance regulations to avoid cancellation.
- With rising digital banking and cash demand in semi-urban India, SBI ATM franchises remain a profitable, low-risk business opportunity in 2025.
Conclusion
If you have a strategically located property and want to generate regular monthly income without actively running a business, an SBI ATM franchise can be a great option. With minimal operational headaches and backing from India’s most trusted bank, it’s a smart long-term investment — especially in a cash-reliant country like India.
Always apply through official third-party partners and avoid middlemen or unofficial agents.
FAQs
No. SBI uses third-party companies to manage and install their ATMs.
₹5 to ₹7 lakhs, including infrastructure and deposit.
Minimum 50–80 sq. ft. on the ground floor.
₹30,000 to ₹60,000, depending on transactions and rent terms.
Only the security deposit is refundable. Application fees are usually non-refundable.
No. The operations and cash management are handled by the TSP.
Usually 9–10 years with fixed or performance-linked rent.
Yes, you need to provide power backup and security (CCTV or basic security features).
Property ownership/lease papers, ID proof, utility bills, photos of the space.
Only apply via the official websites of companies like Tata Indicash or India1 ATM.
