SBI ATM Franchise | How to Apply for SBI ATM Franchise (2023)-Cost & Profit Margin

SBI ATM Franchise | How to Apply for SBI ATM Franchise (2023)-Cost & Profit Margin

Do you want to take such a franchise in which you do not have to work but give a good profit? or, are you looking for such a franchise business in which you can do that franchise business even without stopping the current work?

If you all are looking for the answer then let me tell you that it is ATM Franchise Business, you can not only withdraw money by taking this Franchise but can also earn from it.

If this question comes to your mind that why you should have an ATM franchise, then first we know why you should take an ATM franchise.

  • Attractive Income source– In this you get a fixed share on each transaction.
  • Low Operational Cost– Once the ATM is installed all you need is cash replenishment and periodic maintenance.
  • Passive Income– ATM operates 24*7 so it gives us the opportunity to earn passive income.
  • Diversification of Business– Despite having this franchisee business, you can easily do another business as well.
  • Trusted Banking Partner– When you partner with a reputed bank or financial institution for the franchise, it adds to your credibility as a business owner.

Many Banks and Financial institutions in India provide ATM franchises. But in this article, we will discuss in detail about “How to Apply for SBI ATM Franchise (2023) “and at the same time, we will also understand why we should take this franchise, how much it costs, what is the profit margin, what are the documents required, the difficulties involved, and much more, so let’s start from the beginning.

Overview about SBI ATM Franchise

SBI ATM Franchise | How to Apply for SBI ATM Franchise (2023)-Cost & Profit Margin

The State Bank of India (SBI) is a largest bank in India that provides financial services. Its main office is in Mumbai, Maharashtra, and it has 229 branches in 31 countries.

SBI is a government-owned bank. It has about 23% of the total assets in the Indian banking industry and provides about 25% of all the loans in the country. The bank is proud to serve over 45 Crore (450 million) customers through its extensive network of over 22,000 branches, 62,617 ATMs, and 71,968 business correspondents (BCs).

Usually, banks don’t offer regular ATM franchises, but there are some companies called White Label ATM Operators that may offer opportunities for ATMs under specific arrangements.

SBI ATM: Essential Facts

1 Trade Name State Bank of India
2 Type Public
3 Industry Banking, financial services
4 Founded 1 July 1955
5 Key People Dinesh Kumar Khara (Chairman)
6 Headquarters Maharashtra, India
7 Area Served Worldwide
8 ATM Model Franchise-outsourced
through White Label Operators
9 Revenue  ₹ 473,378.14 crore (FY23)
10 Website bank.sbi

White Label ATM Operators

SBI ATM Franchise | How to Apply for SBI ATM Franchise (2023)-Cost & Profit Margin

White Label ATM (WLAs) operators are special companies approved by the Reserve Bank of India (RBI) to run their own ATMs in India. They are not regular banks but are allowed to offer ATM services for other banks, following certain rules and regulations.

The RBI introduced White Label ATMs to bring banking services to rural and remote areas where regular banks might not be available or it’s not profitable to have ATMs. White Label ATM operators can provide services like cash withdrawal, balance checking, and more to customers using these ATMs.

Such non-bank entities should have a minimum net worth of Rs 100 crore. Tata Communications Payment Solutions Limited (TCPSL) was the first company authorized by the Reserve Bank of India (RBI) to open White Label ATMs in the country. It was launched under the brand name ‘Indicash’.

Approved White Label ATM Operators and its status

Entity Month and Year of Issuance of Certificate Current Status as of July 2021
Tata Communications Payment Solutions Limited May 2013 Operational
Hitachi Payment Services Pvt. Ltd. November 2013 Operational
Vakrangee Limited January 2014 Operational
India1 Payments Limited February 2014 Operational
Muthoot Finance Limited February 2014 the company surrendered its certificate of Authorization in 2020 due to mounting losses
SREI Infrastructure Finance Limited May 2014 The company surrendered its certificate of Authorization in 2018 due to viability issues
Riddi Siddhi Bullions Limited May 2014 RBI revoked the certificate of Authorization in March 2021 due to Non-compliance with regulatory requirements
AGS Transact Technologies Ltd June 2014 RBI revoked the certificate of Authorization in March 2021 due to Non-compliance with regulatory requirements

As of July 2023, four White Label ATM(WLA) operators remain in the industry –

  1. India1 Payment Limited- Currently has more than 12142 WLA.
  2. Hitachi Payment Services- Currently has more than 8750 WLA.
  3. Tata Communications Payment Solutions- Currently has more than 8700 WLA.
  4. Vakrangee- Currently has more than 6238 WLA.

Why SBI ATM Franchise?

  1. Established Brand- It is a well-known and respected brand in the finance service sector of India. It is successfully providing its service from last 68 years in India. It has more than 45 crore (including repeat Customer) established customers and 2.5 lakh daily customers.
  2. Extensive Network- It has 22,000 branches, 62,617 ATMs, and 71,968 business correspondents (BCs) in India. You can earn good profits due to the existing customer base of these and the potential traffic that the established locations can attract.
  3. Comprehensive Support- It supports you in site selection, installation, maintenance, cash management and technical support
  4. Long-Term Investment- With an established brand like these, you can know that you have made a long-term investment that will continue to grow and provide service as the banking sector evolves.
  5. Low Investment and High Income- You can start with a cost of 5 lakhs and earn an income of more than 50,000 a month.

SBI ATM Franchise Cost

Total investment of around 5 lacs in which 2 lacs is refundable deposit and the rest is an investment to manage the daily ATM operations. This does not include the cost of construction of the ATM. ATM Franchise cost may vary based on various factors like location, market potential and tenure set by white label atm operators.

SBI ATM Franchise Profit Margin

SBI ATM Franchise | How to Apply for SBI ATM Franchise (2023)-Cost & Profit Margin

Profit margins in the ATM business are affected by the number of transactions at the ATM, transaction fees from customers, expenses associated with cash management, maintenance and other operating costs. If we talk about SBI ATM franchise, then initially you can get a net profit margin of around ₹ 50,000. In this, you get ₹ 8 on every cash transaction and ₹ 2 on every non-cash transaction like balance check and fund transfer.

with the ATM industry growing and more people withdrawing cash having an ATM in a busy area with lots of cash transactions could mean earning around ₹ 70,000-90,000 per month as a profit.

Example: Total Number of ATM Transaction performed daily: 500; out of which 350 is Cash and remaining 150 are non-cash transactions;

Type of Cost Cost and Other Details
Cash Transactions (350*₹8*30 days) ₹ 84,000
Non- Cash Transactions (150*₹2*30 days) ₹ 9,000
Monthly Profit ₹ 93,000
Less: Rental – ₹ 10,000
Less: Electricity – ₹ 8,000
Less: House-Keeping – ₹ 5,000
Less: Other Expenses – ₹ 10,000
Net Profit Per Month  ₹ 60,000

Requirement for SBI ATM Franchise

  1. We estimate that this franchise may require a total investment of around 5 lacs in which 2 lacs is refundable deposit and the rest is an investment to manage the daily ATM operations.
  2. For this, you need a Space of 60 to 80 sq ft. It can be either your own or you can take it on rent. While choosing this place, you should keep in mind that there should not be any other ATM around 100 meters and this place should be a safe place.
  3. 24-hour power availability has to be ensured as ATM is operational 24*7. Electricity is used to operate ATM, CCTV and AC.

Document Requirement for SBI ATM Franchise

For this you need some important documents which are as follows

  1. Aadhar Card.
  2. Submission of Document & Agreements.
  3. Electricity Bill.
  4. Trade Name and GST Number.
  5. Bank Document.
  6. Property Document.
  7. DD (Demand Drafts) of 5 lacs.

Note: – Apart from this, if any other document is demanded, then you will also have to provide it.

How to Apply for SBI ATM Franchise?

The State Bank of India (SBI) does not offer traditional ATM franchises. SBI is a government-owned public sector bank and operates its ATMs directly. These ATMs are owned and operated by the bank itself. but there are some companies called White Label ATM Operators that may offer opportunities for ATMs.

Sr. No. White Label ATM Operators  Franchise Form
1 India1 Payment Limited Click here for Apply
2 Tata Indicash Click here for Apply
3 Hitachi Payment Services Click here for Apply
4 Vakrangee Click here for Apply

You have to fill-up the franchise form , after that its customer care will call you on its own.

Risk In SBI ATM Franchise

While starting an SBI ATM franchise in India can be a promising business opportunity, like any venture, it comes with its share of risks. It’s essential to be aware of these risks and take necessary precautions to mitigate them. Here are some potential risks associated with an SBI ATM franchise:

  • Returns may be slow if there is not enough traffic or transactions at the chosen location.
  • Cash crunch or security issues related to cash handling can affect business.
  • You may be at a loss in terms of theft at an ATM.
  • The presence of other ATM operators may affect transaction volume and revenue.

Overview

SBI is a government-owned bank. It has about 23% of the total assets in the Indian banking industry and provides about 25% of all the loans in the country. The bank is proud to serve over 45 Crore (450 million) customers through its extensive network of over 22,000 branches, 62,617 ATMs, and 71,968 business correspondents (BCs). Total investment of around 5 lacs in which 2 lacs is refundable deposit. you need a Space of 60 to 80 sq ft. If we talk about SBI ATM franchise, then initially you can get a net profit margin of around ₹ 50,000.

Every business has some merits as well as some risks to them, so according to me, consider each and every aspect before starting this franchise. If there are any questions related to this franchise, then you can ask us your question in the comment box below.

FAQs

What is the cost of SBI ATM installation?

A total investment of around 5 lacs in which 2 lacs is refundable deposit and the rest is an investment to manage the daily ATM operations and you need a Space of 60 to 80 sq ft.

Is SBI ATM Franchise Profitable?

Certainly! Yes. If we talk about SBI ATM franchise, then initially you can get a net profit margin of around ₹ 50,000. with the ATM industry growing and more people withdrawing cash having an ATM in a busy area with lots of cash transactions could mean earning around ₹ 70,000-90,000 per month as a profit.

Can we take SBI ATM franchise?

yes,you take sbi atm franchise by applying the form of white label atm (i.e. Tata Communications Payment Solutions Limited,Hitachi Payment Services Pvt. Ltd.,Vakrangee Limited,India1 Payments Limited)

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