How to Start an ATM Business in India

In many small towns and villages in India, people still need cash for daily use. But not every area has a bank or ATM nearby. That’s why starting an ATM business is a smart idea. You can set up an ATM and help people withdraw money easily—while also earning income for yourself.

You don’t need to be a bank to start this. Through a model called White Label ATM, even individuals or small businesses can install ATMs and earn every time someone uses them. In this blog, we’ll explain how you can start your own ATM business in India, what steps to follow, and how you can earn from it.

What is the ATM Business?

ATM business means installing an ATM machine at a good location and earning money whenever someone uses it. This business is mainly done through White Label ATMs, which are ATMs not owned by banks. In this model, even shopkeepers or individuals can run an ATM by taking it on rent from a company that provides these machines.

You don’t have to worry about cash loading or technical work. The company takes care of that. Your job is to give space, electricity, internet, and basic safety. In return, you get money on every transaction. That means every time someone withdraws cash, checks their balance, or takes a mini statement—you earn a small amount.

The more people use your ATM, the more you earn. This business works really well in areas where there are fewer banks or ATMs. It’s a simple way to earn monthly income with very little work.

Types of ATM Business Models in India

In India, there are mainly three types of ATM business models that you should know about. Let’s understand each one in simple words:

1. Bank-Owned ATMs

These ATMs are directly set up and managed by banks like SBI, HDFC, ICICI, etc. The bank takes care of everything—installation, cash loading, and maintenance. You cannot own or earn from this model unless you work directly with the bank.

2. White Label ATMs (WLA)

These ATMs are owned and operated by private companies, not banks. Anyone can partner with a White Label ATM company and set up an ATM in their shop, property, or space. You earn money on every transaction done on your ATM. This is the most common and profitable model for individuals or small businesses.

3. Brown Label ATMs

In this model, the ATM machine is owned by a private company, but all the transactions are linked to a particular bank. The bank takes care of cash handling, while the company handles setup and maintenance. This is mostly used by larger businesses or franchise partners.

Out of these, White Label ATMs are the best option for individuals who want to start an ATM business and earn a regular income without much effort.

How Does the ATM Business Work?

In the White Label ATM business, fintech companies like Biznext help individuals or shop owners install ATM machines at their location and earn income on every transaction done by customers. You don’t need to be a bank or do technical work—you just need a space and basic setup.

Here’s how the process works, step by step:

1. Apply Through a Fintech Company Like Biznext
   You first apply to a fintech company like Biznext that offers White Label ATM services. They check your documents, location, and eligibility.
2. ATM is Installed at Your Location
   Once approved, company helps arrange for an ATM to be installed at your shop or space. You don’t need to buy the ATM—the company provides it.
3. You Provide Space, Electricity, and Internet
   You only need to give a small area (about 40–50 sq. ft.), a regular power supply, and a working internet connection so the ATM can function smoothly.
4. You’re Trained for Basic ATM Handling
   The companys then train you on how to operate and take care of the ATM. Things like keeping it clean, handling minor issues, and restarting it if needed are your responsibility.
5. Customers Use the ATM to Withdraw Money
   Once the ATM is active, people from the area will come to withdraw cash, check their balance, or print a mini statement.
6. You Earn Commission on Every Transaction
   The best part—you earn commission every time someone withdraws cash from your ATM. Even for balance enquiries or mini statements, you may earn a small amount. The more people use your ATM, the more you earn every day.

This is a simple and low-maintenance business idea. Once set up, it runs almost on its own, and you enjoy a steady monthly income.

How to Start an ATM Business in India

Starting an ATM business in India is easy if you follow the right steps. You don’t need to be a bank or a finance expert. Even a shopkeeper or small business owner can start this business and earn regular income. Here’s how you can do it:

1. Choose a Trusted Fintech Partner

First, select a reliable company that offers White Label ATM services.

2. Apply Online or Through App

You can apply online or through the Biznext app. Fill out basic details like your name, contact info, shop address, and upload necessary documents.

3. Submit Required Documents

You’ll need to provide:

• Aadhaar card
• PAN card
• Electricity bill or rent agreement
• A photo of your shop or location

4. Site Verification and Approval

Once you apply, the company will check if your location is suitable. They usually prefer busy areas with good footfall. If everything is okay, they’ll approve your application.

5. ATM Installation and Training

After approval, the ATM will be installed at your place. You’ll also get basic training—like how to switch it on/off, handle errors, and keep the machine area clean and secure.

6. Start Earning Commission

Once the ATM is live, you start earning commission on every transaction. Whenever someone withdraws money or checks balance, you get paid a small amount. More usage means more income.

This is a great small business idea that runs with very little effort. You just need a good location, electricity, and internet. Everything else is managed by the company.

Starting a Mini ATM Business: The Budget-Friendly Option

If you’re looking to start a low-cost business with daily income, then a Mini ATM business is a great choice. Unlike big ATMs installed by banks, Mini ATMs are small, portable devices that allow people to withdraw cash using their debit card and Aadhaar. It’s a perfect option for shopkeepers, mobile recharge stores, and small business owners.

Here’s why Mini ATM is a budget-friendly option:

• Low Investment – Mini ATM machines cost much less than full-size ATMs. You can get started with a small setup cost through fintech platforms like Biznext, Paynearby, BankIt, RapiPay etc.
• Easy to Use – You don’t need any technical knowledge. The machine is simple to operate, and companies like Biznext train you on how to use it.
• No Need for Separate Shop Space – You can run a Mini ATM from your existing shop counter or small setup—no need to rent a new space.
• Earn Commission on Every Withdrawal – Whenever a customer comes to withdraw money, you earn a commission. Even if they withdraw ₹100 or ₹5000, you get paid for every transaction.
• Serves Local Need – Mini ATMs are helpful in areas where there are no bank branches or regular ATMs. People come to your shop to withdraw money, and you earn while helping them.

Investment and Profit Potential of ATM Business

Best ATM and Mini ATM Providers in India

1. Biznext
   Offers White Label ATM and Mini ATM services with affordable investment. Known for instant onboarding, voice alerts, and good customer support. Great for shopkeepers who want to earn commission daily.
2. PayNearby
   One of the oldest and most trusted fintech companies. Offers Mini ATM and Micro ATM devices with good commission rates. Their mobile app is easy to use and supports other services too.
3. RapiPay
   Popular for AEPS and Mini ATM services. Suitable for rural and semi-urban areas. Simple device, low cost, and stable service make it a top choice for many small retailers.
4. Spice Money
   Offers Mini ATM, AEPS, and DMT services. Known for wide reach in rural India. Their commission structure is decent and they offer regular cashback offers to agents.
5. Fino Payments Bank
   Offers Micro ATM services through its own banking network. Good for users who want to offer banking-like services along with ATM withdrawals.
6. Ezeepay
   Provides Mini ATM and AEPS devices with quick setup. Good for first-time users who want to start small and grow gradually. Supports multiple services in one device.
7. Bankit
   Offers Mini ATM, AEPS, and financial services in a simple platform. Good training support and dashboard for tracking earnings.
8. NSDL Jiffy
   Known for AEPS and Micro ATM services. NSDL is a trusted name in digital services, and their setup is reliable for regular footfall locations.
9. Vakrangee
   Offers full-size ATMs in rural areas under White Label ATM model. Good for those who have a bigger shop or space and want to run an ATM like a small branch.
10. India1 ATM (formerly Tata Indicash)
    A major White Label ATM provider. If you want to install a full-size ATM and have the budget and location, this is a trusted name in the industry.

Also read – Aadhaar Enabled Payment System (AePS) – A Comprehensive Guide

Pros and Cons of Starting an ATM Business

Legal Requirements and Safety Tips for ATM Business

Legal Requirements:

• Registration: You need to register your business officially, like a sole proprietorship or partnership, to run an ATM business legally.
• Agreement with ATM Provider: Sign a contract with companies like Biznext, PayNearby, or RapiPay before getting your ATM device.
• KYC Compliance: Follow the Know Your Customer (KYC) rules while installing and operating ATMs to prevent misuse.
• Permission from Local Authorities: Sometimes, you may need permission from local municipal bodies or property owners if you install an ATM outside your shop.
• GST Registration: If your business turnover crosses the limit, register for GST to avoid legal issues.
• Adhere to RBI Guidelines: Ensure your ATM operations comply with Reserve Bank of India rules, especially about transaction limits and security.

Safety Tips:

• Secure Location: Place your ATM in a safe, well-lit area to protect it from theft and vandalism.
• Regular Maintenance: Keep the machine clean and check it regularly to avoid breakdowns that can reduce customer trust.
• Cash Handling: Usually, the bank manages cash refilling, but if you are responsible, ensure safe handling and counting.
• Data Protection: Never share sensitive information like PINs or transaction details. Educate your customers about ATM safety.
• Surveillance: Install CCTV cameras near the ATM to deter fraud or misuse.
• Report Issues Quickly: If you notice any suspicious activity or technical problem, report it immediately to your ATM provider.

Also read – Digital Gramin Seva

Frequently Asked Questions (FAQs) about ATM Business

Q1. What is an ATM business?
An ATM business means you own an ATM machine where people can withdraw cash. Every time someone uses your ATM, you earn a commission. It is a good way to earn money by helping people get cash easily.

Q2. How do I start an ATM business?
To start an ATM business, you need to choose a trusted company like Biznext, PayNearby, or RapiPay. You apply to get an ATM machine from them. When your application is approved, you install the ATM at your shop or another safe place. After that, you start earning commission whenever customers use your ATM.

Q3. How much money do I need to start?
The cost depends on the type of ATM you choose. A Mini ATM usually costs between ₹15,000 and ₹25,000. A full-size White Label ATM can cost around ₹1,00,000 to ₹2,00,000. Mini ATMs are cheaper and good if you want to start with a small budget.

Q4. How do I earn money from an ATM?
You earn money every time someone withdraws cash or uses other services like balance checking on your ATM. The ATM provider pays you a commission for each transaction made by customers on your machine.

Q5. Who takes care of the ATM maintenance?
You are responsible for small things like cleaning the ATM and making sure it is working properly. The ATM company will teach you how to manage these things. If there is a big problem, the company will help with repairs, depending on your agreement.

Q6. Do I need to know technical things to run an ATM business?
No, you do not need to be a technology expert. The ATM company gives you training on how to use and manage the ATM. It is easy to learn and operate.

Q7. Who puts cash into the ATM?
Usually, the bank or a cash handling company refills the cash in the ATM. But if you run a Mini ATM, sometimes you may need to add cash yourself.

Q8. Is running an ATM business risky?
Like any business, there are some risks. The ATM machine can break down or be damaged. Sometimes, few people may use your ATM. But if you keep the ATM safe, clean, and in a busy area, these risks are less.

Q9. Can I run more than one ATM?
Yes, you can run many ATMs at different places. This will help you earn more money.

Q10. When will I start earning money?
You start earning money as soon as customers begin to use your ATM. The more people use it, the more commission you earn.

Q11. What documents do I need to apply for an ATM?
You will need some documents like your Aadhaar card or PAN card for identity proof, address proof, and your business registration papers.

Q12. Are there any hidden charges or fees?
Some companies may charge fees for services or maintenance. Always read your contract carefully before you sign it so you know all the costs.

Also read – Fintech Companies in India

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