What Is An ATM Machine | Requirements | Types | Apply for ATM lease | Before making your application | Money making | Sample Application | Final Words

When you rent to people, there are all sorts of issues that arise that make you regret renting to them. However, there is a better way to make rental money that leaves those hassles out of the agreement.

Just open up a space in your shop for an ATM machine. Renting space to banks for an ATM machine is a great way to make some extra money and you do not get the hassles that you do from traditional renting.

To find all about this growing trend that helps your customers access their money, just keep reading our article. It has the information you need to know about.

What Is An ATM Machine

How To Apply For ATM Machine Installation

By now, most of us already know what an ATM is. But for those who do not, those letters are short for Automatic Teller Machine and they tell you exactly what this device is and does. Having one on your commercial property can be a serious and positive upgrade to your property.

Requirements to rent an ATM

Here are the requirements you need before the bank or non-banking entities will approve your application. However, even if you have met these requirements, there are no guarantees they will install an ATM at your location. The final decision is theirs to make.

  • Fill out an application form- don’t leave any question blank and if the question doesn’t apply use N/A
  • You need to own commercial property
  • The proposed ATM location needs to be in a strategic place
  • You need a lot of human traffic to your property or around it
  • You need to set aside between 60 and 100 square feet- some people say 80 is the upper limit but it is okay to go to 100 square feet
  • You will need Rs. 5 Lakhs or more in savings- 2 to 3 Rs Lakhs will be for a refundable deposit.
  • The rest will be used for maintenance, management & daily operation
  • Your personal and business character should be of impeccable standards
  • The property does not have any financial encumbrances against it and no one objects to your placing an ATM on your property

Different Types Of ATMs

There are 3 types of ATMs you can lease. One is called the franchise ATM and the other is called the White Label and the 3rd one is known as the Brown label ATM.

Franchise Option

The franchise option is bank-owned and you need to talk to different banks to see if they are interested in putting one of their machines in your area.

White Label ATM

Then the white label ATM are not bank-owned. The owners are called NBFCs or non-banking financial companies and they are authorized by the RBI to help increase the distribution of ATMs throughout the country.

Their focus is more on semi-urban to rural areas giving access to people that normally cannot get to the bigger cities and the ATMs located there.

Brown Label ATMs

The brown label ATMs are the 3rd type of machine you can lease. These are owned by banks but serviced by another party contracted by the bank to handle all servicing, etc.

With brown label ATMs, the banks are responsible for the cash management and the connection to their services. The 3rd party is responsible for the location and leases of those ATMs.

The 3rd party is generally not known to the public as the bank’s logo is on the machine. Also, you will not see any difference between these machines and the franchise ATMs operated by banks.

How do you apply for an ATM lease?

There are several steps involved in this process. It is not an overnight decision-making process and some time will be involved before you get an answer. Here are those steps:

1. Submit an application- the letter should include basic details about the property, like:

  • Location, Address with Code
  • Floor and Covered area in sq ft
  • Licenses and approvals from respective authorities
  • Proposed Rent
  • Contact number/e-mail ID
  • Images of the site

2. The bank or NFBC will review the application, and the property and analyze traffic and demand for an ATM. These institutions prefer placing an ATM on property that has no mortgages, etc.

3. Once approved, the bank or NFBC will ask for other documentation

4. Also, you need to have extra room for machine servicing and satellite dish and other components for network connection, etc.

5. You sign the agreement with the institution.

Currently, there are 6 NFBC institutions you can work with. They and the number of machines they own are as follows:

  • Tata Communications Payment Solutions ( 8,290 ATMs)
  • BTI Payments (6,249 ATMs)
  • Vakrangee (4,506 ATMs)
  • Hitachi Payment Services (3,535 ATMs)
  • RiddiSiddhi Bullions (681 ATMs)
  • AGS Transact (119 ATMs)

You already know all the banks that you can contact to get one of their machines in your location.

Things you should know before making your application

There will always be hidden details that are not found in the marketing of leasing an ATM. Here are some of the things you may not be aware of when you go to make your application:

  1. Your commercial property must be in a busy area
  2. If it is not in a busy area, then your property will be considered if there are no other ATMs nearby (Near by will be up to the institution to decide)
  3. You have to prove your property is free from any loans or other financial encumbrances
  4. A white label ATM functions just like a franchise or bank-owned ATM except that the white label companies can have 3rd party advertising in their leased areas
  5. As of 9/20 there were over 2,34,244 ATMs in India and that is 1 ATM for every 10 villages in the country
  6. You will receive your security deposit back once the lease is over
  7. Banks and NFBCs are looking for long-term leases, not short-term ones
  8. ATM installations have been growing at a 23 to 25% rate each year, with new customers added each year, banks need more ATMs placed around the country
  9. You can find templates online to help you structure your application letter or look below to get one example of how you should structure your application letter

How Much Money Will Your Rental Make

This will depend on several factors. There is no way to absolutely state how much you will make as your traffic, daily use and other factors will influence how much your ATM will bring you.

For example, the bank-owned ATMs charge Rs.15 per cash withdrawal and Rs. 5 for non-cash withdrawal transactions. That means if you get a large amount of both transactions, you can easily make Rs. 2500 each day.

Of course, that amount will be lower if your traffic slows down and they do not make a lot of cash withdrawals. The potential to earn in this case would be roughly Rs. 50,000 to 60,000 per month.

Generally, you may be looking at receiving, Rs. 25,000 to 50,000 per month. Some days will have more traffic than others cutting your rental income down some. Then if you are in a good area, it is possible to earn more than the average.

This should motivate you to keep those ATMs secure and in a very visible location so people can feel safe using them as well as spot them without trouble.

Sample Application Letter

The Executive Officer
The Bank’s Name

Subject: Rental proposal for ATM installation

Respected sir or madam,

This is to say that I’d like to lease my property to your bank in order to install an ATM there. My personal information and details of the property that I intend to lease for this purpose have been made public with this intention.

The applicant’s details are as follows-

Home Address:
Phone number:
Leased property’s address:

Covered Area

If there are any nearby AMTs, the following is their distance from you:

Charges for renting the property(Proposed):

The proposed security deposit is as follows:

I also certify that the property is free and clear of any liens or encumbrances and that I have obtained certificates of no objection from the relevant authorities, allowing me to have an ATM installed at the location in question. In addition, for your convenience, I have included images of the location where I intend to put the ATM in the application that I have submitted to you. I would be grateful if you will give my application for this position some thought.


First and Last Name of the Applicant:
The applicant’s signature:
The applicant’s mobile phone number:

Some Final Words

When you have extra space on your commercial property that is in strategic locations, you should consider leasing an ATM. Not only will you be helping your customers access their cash, but you can also make more money.

Your customers can spend more in your store, etc., and you gain rental money through your lease agreement. That is a win-win for any business. Investigate this opportunity to see if it makes financial sense for your area and business.

It is best to enter this trend sooner than later as when you delay, your prime location may be already taken by someone else. That will not be good for your business.