How to get SBI ATM Franchise | Cost, Fee, & Profit | Earn 70k/Month


Expanding its reach and accessibility, State Bank of India (SBI) offers individuals the opportunity to become a part of its ATM network through its franchise program. As one of the largest and most esteemed banks in India, SBI’s ATM franchise presents a promising business opportunity.

In this article, we will delve into the business model, provide an overview of the SBI ATM franchise, guide you through the application process, discuss the associated costs and fees, explore the potential profit margin, highlight the pros and cons, and conclude with some frequently asked questions.

Business Model of SBI ATM Franchise

The SBI ATM franchise operates under a business model that allows individuals to partner with the bank in providing convenient and accessible banking services to customers. By becoming an SBI ATM franchisee, you can establish your presence in the banking sector and contribute to financial inclusion across India.

As a franchisee, you will function as an extension of the bank’s services, offering 24/7 access to a range of banking transactions such as cash withdrawals, balance inquiries, fund transfers, and more.

How to Apply / Application Process

To apply for an SBI ATM franchise, follow these steps:

Research and Preparation:

  • Familiarize yourself with the requirements, regulations, and responsibilities associated with owning an SBI ATM franchise.
  • Prepare the necessary documentation, including your valid identity proof, address proof, and financial statements.

Contact SBI Regional Office:

  • Reach out to the nearest SBI Regional Office and express your interest in acquiring an ATM franchise.
  • Obtain the application form and thoroughly read the guidelines provided.

Fill and Submit the Application:

  • Complete the application form accurately, ensuring all requested information is provided.
  • Attach the required documents and submit the application form to the SBI Regional Office.

Application Review:

  • The SBI Regional Office will review your application, evaluating your eligibility and suitability for the franchise opportunity.
  • This phase may involve background checks, verification procedures, and assessment of your financial stability.

Business Plan Presentation:

  • If selected, you will be invited to present your business plan to SBI officials.
  • Showcase your understanding of the industry, market research, and your vision for operating a successful ATM franchise.

Agreement and Training:

  • Upon approval, you will enter into a franchise agreement with SBI, which will outline the terms and conditions of your partnership.
  • SBI may provide training and orientation sessions to familiarize you with their systems and processes.

Cost and Fees

When considering the cost and fees associated with owning an SBI ATM franchise, it’s essential to understand the financial obligations involved. Here are some factors to consider:

  1. Franchise Fee: The initial franchise fee, which varies from location to location, is a one-time payment that grants you the right to operate as an SBI ATM franchisee.
  2. Equipment and Installation: You will be responsible for procuring and installing the necessary ATM equipment, which includes the ATM machine, cash dispenser, security systems, and other related infrastructure.
  3. Rental and Space: Identifying a suitable location is crucial. Based on the location’s rental rates and space requirements, you must budget for monthly rental expenses.
  4. Maintenance and Upkeep: As the franchisee, it is your responsibility to ensure that the ATM remains functional and well-maintained. This involves regular maintenance, software updates, security measures, and operational training for your staff.

SBI ATM Franchise Investment Breakdown:

Item Cost
Security deposit Rs. 2 lakh
Working capital Rs. 3 lakh
Total investment Rs. 5 lakh
Area requirement Minimum 100 sq. ft.

The minimum space needed for an SBI ATM franchise is 100 square feet. The precise location, however, may change based on the size and arrangement of the ATM.

An SBI ATM franchise requires a total investment of Rs. 5 lakh. This includes working capital, the security deposit, and any other unforeseen costs.

While the working capital is not refundable, the security deposit is. The costs of running the ATM, such as energy, maintenance, and cash replenishment, are covered by the working capital.

Also Read: How to Start Hitachi ATM Franchise 2023 | Cost, Fee & Profit | Apply Online

Profit Margin

While the potential profit margin of an SBI ATM franchise is influenced by various factors such as location, footfall, and operational costs, it presents a lucrative opportunity. As the franchise owner, you earn revenue through transaction fees for each successful withdrawal or banking transaction conducted through the ATM.

By analyzing the average usage and estimating the monthly transactions, you can gauge the potential profit margin for your specific ATM franchise.

The transaction fees that are imposed on clients are how an SBI ATM franchise makes its money. The transaction costs are Rs. 2 for non-cash transactions and Rs. 8 for cash withdrawals.

An SBI ATM franchise typically earns between Rs. 45,000 and Rs. 90,000 per month. Depending on how many transactions the ATM conducts, the real income will change.

For an SBI ATM franchise, the return on investment ranges between 33-50%. This indicates that you may anticipate a profit of between Rs. 1.65 lakh and Rs. 2.5 lakh per year for every Rs. 5 lakh you invest.

Pros and Cons

Like any business endeavor, owning an SBI ATM franchise comes with its own set of advantages and disadvantages. Let’s explore a few:


  • Association with SBI: Being affiliated with the prestigious State Bank of India provides credibility, trust, and brand recognition in the market.
  • Revenue Generation: With a steady stream of transactions and service charges, an SBI ATM franchise has the potential to generate significant income.
  • Business Support: SBI offers support in terms of operational guidance, training, marketing assistance, and technical troubleshooting.


  • Initial Investment: Setting up an SBI ATM franchise requires a substantial initial investment for equipment, installation, and other associated costs.
  • Operational Challenges: Maintaining and troubleshooting the ATM machines, ensuring adequate cash availability, and handling customer grievances can be demanding.
  • Regulatory Compliance: As a franchisee, you are required to adhere to the regulations and guidelines set by SBI and the regulatory authorities in the banking sector.


Investing in an SBI ATM franchise can be a rewarding venture, allowing you to contribute to the banking ecosystem while generating a substantial income. By following the application process, carefully considering the costs and fees, and evaluating the profit potential, you can make an informed decision.

Remember, the success of an SBI ATM franchise largely depends on factors such as location, operational efficiency, customer service, and adapting to the evolving technological advancements in the banking sector.


How long does the application process for an SBI ATM franchise take?

The application process timing may vary depending on various factors, including the completion of required documentation, verification procedures, and the decision-making timeline of the SBI Regional Office. It is advisable to communicate with the respective Regional Office for a precise estimate.

Can I apply for multiple SBI ATM franchises?

Yes, you can apply for multiple SBI ATM franchises, depending on your eligibility and availability of suitable locations. Each application will be evaluated on its individual merit.

What type of support does SBI provide to its franchisees?

SBI extends various forms of support to its franchisees. This includes operational guidance, training programs, marketing assistance, and technical support for troubleshooting.

Is there a minimum number of transactions required for the profitability of an SBI ATM franchise?

The profitability of an SBI ATM franchise is dependent on factors such as location, footfall, operational costs, and transaction volume. While there is no specific minimum requirement, analyzing the potential customer base and transaction trends can help determine the profitability.

Hey everyone, Vishal here! I'm fascinated by the world of business, especially the exciting potential of franchising and spotting the next big idea. In my writing, expect a mix of in-depth franchise breakdowns, thought-provoking new business ideas, and practical advice to turn those ideas into reality.

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