They want an SBI ATM franchise so that they can start a business without any hassle and benefit from the regular commission. Definitely a safe bet to install an ATM for India’s largest public sector bank, State Bank of India (SBI), as it has the most trusted brand and solid presence among customers. It provides the ability to withdraw cash and is such an essential one for most people, SBI, with a huge customer base, has heavy footfall/transactions in ATMs.
In this article, we guide you to start your own SBI ATM franchise with an in-depth look at the franchise cost of SBI ATMs and steps on how much investment is required as well as various ways it can serve the highest profits. How to own an SBI ATM: qualifications and returns.
Table of Contents
Key Details of SBI ATM Franchise
| Brand Name: State Bank Of India |
| Established By: Imperial Bank of India |
| Established Date: 1 July 1955 |
| Customers Per Day: 450 million customers |
| Franchise Fees: 1 to 2 lakhs |
| Security Deposit: 2 lakhs |
| SBI ATM Franchise Cost: 5 to 6 lakhs |
| Required Space: 50 to 100 sq ft |
| Transaction Fees: Between 8 to 15 rupees per transaction |
| Profit Margin: 30% to 40% |
| Minimum Profit Per Month: 60,000 |
| Transaction Fees: Between 8 to 15 rupees per transaction |
Setting aside an SBI ATM establishment is a lucrative endeavor as the volume of exchanges done every day in it very well may be high. ATMs in high-traffic or underbanked areas may yield significantly profitable revenue. But before you can do that, let’s take a closer look at them and how to start.
How Much Does the SBI ATM Franchise Cost?
The total investment to start the SBI ATM Franchise is between 5 lakhs to 6 lakhs including Franchise fees, installation expenses, security deposits, working capital, and others. Here is the detailed cost breakdown of SBI ATM Franchise:
| ATM Installation Expenses | 2 Laks to 3 Lakhs |
| Franchise Fee | 1 lakh to 2 lakhs |
| Security Deposit | 2 lakhs |
| Working Capital | 50,000 to 1 lakh |
| Electricity and Maintenance | 10,000 to 15,000 per month |
| Miscellaneous Expenses | 50,000 |
| Total Investment | 5 lakhs to 6 lakhs |
Franchise Fee: In order to install the SBI ATM, you have to pay a one-time franchise fee applicable to WLA operators. It can cost around 1 to 2 lakhs rupees, including the operator you choose and the place from which it is taken.
ATM Installation Expenses: ATM machine installation costs typically INR 2 lakhs to INR 3 lakhs for site set-up, air conditioning & security (CCTV/security alarms), and installation of the ATM machine.
Security Deposit: WLA operators often require a security deposit of about 2 lakhs in order to be provided with proper care and maintenance for the ATM.
Other Costs:
Rent: You need to rent the space and don’t forget this is a monthly rental, so yes, it will depend on where it’s located. Attractive locations may require a large sum of rent or high yield, suitable places to carry out exhibitions and business activities, and the amount of housing in remote areas that are willing to invest a lot less in foot traffic.
Electricity and Maintenance: The bag in the ATM needs to be maintained at an optimal temperature, while lighting on for 24 hours a day may need electricity power. You will get this for anywhere from around INR 10,000 to INR 15,000 per month generally.
Profit Potential of SBI ATM Franchise
While the investment may seem significant, the SBI ATM franchise offers a lucrative revenue model that ensures a steady income stream over time. Here’s how the revenue is generated:
| Transaction Fees | Rs 8 per tranction |
| Non-financial transactions | Rs 2 per transaction |
| Profit Margin | 30% to 40% |
| Profit per Month | Min 60,000 per Month |
| ROI Period | 12 to 18 months |
Transaction Fees: ATM owners receive a transaction fee for every transaction that occurs at the ATM. The commission for every cash withdrawal is approximately Rs 8 per transaction. In the case of balance inquiries and other non-financial transactions, there is usually a charge of 2 per transaction.
Monthly Earnings: How much an ATM can earn per month is based on the number of transactions/walks that it experiences. Example: An SBI ATM processes 250 transactions/day, and a commission of INR 8 is available for each transaction; then how income per month can be calculated like below.
Net Profit Per Month: By considering 250 transactions per month, a franchisee can easily earn a minimum of 60,000 per month.
For high-traffic locations, the number of transactions could be higher, further increasing your revenue.
Additional Revenue: Some WLA operators allow you to set up advertisement screens on the ATM, generating additional revenue through ads displayed on the machine.
SBI ATM franchise resellers can earn a profit margin of about 30% to up to 40%. The reason is that an ATM business has enough of a profit margin to make this worthwhile while and one of the biggest factors in how high that profit margin can be, or what puts it there is because it costs very little to operate other than loading cash. The break-even duration for an SBI ATM franchise is around 12-18 months depending on the transaction counts and operational expenses.
Why Choose an SBI ATM Franchise?
State Bank of India is the most reliable and biggest public sector bank in the country. The bank has more than 450 million customers, and millions of transactions are processed every day in this bank, so it is the most popular choice for starting an ATM franchise business. Benefits of Having an SBI ATM Franchise:
Wide Customer Base: A vast customer base is also available for SBI; this will ensure that there are still some transactions happening.
Renowned Brand: SBI is a name that both the prospective franchisee and customers look upon with reliance.
However, given the high demand for such services, ATMs are virtually a lifeline in countless semi-urban and rural areas that are marginalized, underprivileged, or SC/ST-dominated regions where access to banking facilities is otherwise near null.
No Overhead: ATMs usually do not require daily operational management, and the fixed cost of running an ATM business is low compared to other businesses.
Requirements for Starting an SBI ATM Franchise
One can open an SBI ATM franchise subject to geographical location, space, and technical setup requirements. Here’s what you’ll need:
Location requirements: location to be at a crowded place like near markets, bus stops, railway stations, or residential colonies. The best locations for ATMs are areas with lots of pedestrian traffic.
Space Requirement: The space required for an ATM setup will be about 50 to 100 square feet. There should be facilities for electricity, WiFi, and air conditioning on the site.
Security: Security is a massive part of the functionality on an ATM. You would have to part with some money for CCTV cameras, alarm systems, and, of course, welding the ATM machine inside strong but not very heavy doors at the location.
Advantages of Owning an SBI ATM Franchise
Operating Cost: ATMs, like other businesses, do not ask for daily management, staff requirements, or inventory. It cuts down operational costs pretty manifold.
Passive Income Stream: Once placed, ATMs generate constant income without daily involvement, making it an ideal passive/résiduel cash-generating source.
Strong Brand: SBI, being one of the most trusted banks across India, your ATM will get more usage compared to other private banks, due to which you can expect higher footfall and transaction rates.
Support from WLA Operator: The WLA operators take care of nearly all operations, including cash replenishment, maintenance, and security upgrades. This is elitist franchise owners putting a lot of pressure on.
Disadvantages and Challenges of SBI ATM Franchise
Upfront Costs: Although it is less than for other franchises, the initial investment to open an ATM is still significant enough that some investors might hesitate to make inroads.
Competition: There are many of them, especially in the cities. Your competition also includes ATMs that are nearby.
Security and Vandalism Hazards: ATMs will be the victims of burglary or vandalism.! You need to enhance security if you want your investment to be safe.
Transaction Volume Driven: How many transactions an ATM process dictates its profitability. The expense of running the ATM may even be more than in earnings at some locations with little foot traffic.
Steps to Apply for an SBI ATM Franchise
First step: To get an SBI ATM franchise, you will have to select any one of the approved WLA operators, such as Tata Indicash, Muthoot ATM, or India ATM. These firms are under license from the Reserve Bank of India (RBI) to install and service ATMs for multiple banks.
Complete Application: Upon choosing a WLA operator, fill in its application form stating your locality, user data, and any paper that proves you either possess or lease their place.
Site Inspection: Once the operator reviews your application, they will conduct a site inspection to check if the proposed location has foot traffic as well as security and space; you can refer to this blog for more details on what other checks are done for footwear store inspections.
Sign an Agreement: After you take your site and everything is working fine, then sign an agreement with the WLA operator. This agreement will detail franchise costs, revenue share, and the responsibilities of both parties.
Installation and Setup: The WLA operator then must install the ATMs, including software and security features if needed, to set up the required infrastructure after an agreement with another party.
Start and Running: After the whole installation is done, the ATM is up and running. The WLA operator then handles the logistical and operational activities, which may include cash replenishing, software updates, and repairs.
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SBI ATM Franchise Image Gallery
Conclusion
And who better to benefit from it than those looking for an easy, hands-off business rollover that carries a residual income? We mean individuals seeking the SBI ATM franchise. The line of income is perennial, being SBI ATMs, as it features a high profile, low operations efforts, and maintains an on-demand need. Of course, it’s business, so the location of your ATM, together with how many customers come by, is important to its success.
If you know the costs, investment requirements, and revenue model, then make up your mind about whether this opportunity aligns with your financial goals. SBI ATM Franchise Business. If you have sufficient investment and a place for an SBI ATM, then this can be a nice, lucrative, and also self-satisfied enterprise.
FAQ
What is an SBI ATM franchise?
An SBI ATM franchise is a business opportunity where an individual or entity sets up an automated teller machine (ATM) to facilitate cash withdrawals and other banking transactions for SBI customers. You work through authorized White Label ATM (WLA) operators, and they handle installation, maintenance, and cash replenishment.
How do I apply for an SBI ATM franchise?
You cannot directly apply to SBI for an ATM franchise. Instead, you need to apply through authorized WLA operators like Tata Indicash, Muthoot ATM, or India1 ATM. These companies handle the application process and set up ATMs on behalf of banks like SBI.
What is the cost of setting up an SBI ATM franchise?
The franchise fee, installation expenses, and security deposits are all included in the approximate 5 lakhs to 8 lakhs overall cost of starting an SBI ATM franchise. Electricity and rent may be extra expenses.
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