In India, there are a lot of the opportunities for the business but there is some hidden opportunity from which lot of the entrepreneurs are unfamiliar. So there is one great opportunity in the banking sector i.e How to Start an ATM Business in India.
We always witness the ATM with the bank names like SBI, ICICI bank, UCO Bank, Bank of Baroda etc. but now a new concept has emerged i.e. White label ATM. These ATMs will not have any such bank logos. Any nonbank entity which has a minimum net worth of Rs. 100 Cr. can apply for white label ATM.
In 2012 RBI issued guidelines for the White Label ATM and in 2013 RBI started to give Licences and permissions. 1st permission was granted to Tata Communications Payment Solutions Limited to open such ATM under the brand name of “Indicash”. Until now approximately 15 companies have been given permission like Muthoot Finance, Prizm Payments, and AGS etc.
Need for White Label ATM
- They offer convenience to the customer as any customer belonging to any bank can use it and are open 24/7, and even on holidays.
- They offer convenience to the bank as it will reduce their expenditure on branch operation.
- Will result in ATM penetration in India, as it has been very low i.e. Approximately less than 100 of ATMs per 10 lakh population
- White label ATM users can also withdraw a maximum of 10,000 per transaction.
- Value added services like mobile recharge, utility bill payments etc.
Stakeholders in White Label ATM
It issues license and permission to open the white label ATM under the Payment and settlement system act, 2007 and not any other act.
- White Label ATM company (non-bank entity)
It rents the place for ATM and does the maintenance and service of the ATM machine.
- Sponsor bank
It Loads the cash in the White label ATMs and also ensures that fake currency notes are not circulated through it.
- Payment network operator
They provide technical connectivity in the system. Like Visa, MasterCard, the National Financial Switch (NFS under National Payment Corporation of India.)
Income of WLA
- The 1st 5 transactions will be free every month.
- After the 5th transaction, the fee for the transaction will be Rs. 15 and for balance, an inquiry will be Rs. 5. This fee will be paid by your bank to White label company. As per RBI rules, it cannot charge money directly on you. Your bank will cut those charges from your account.
So Let’s learn How you can setup an ATM Business in India with a White Label Companies and earn 10,000 to 25000 per month.
Following are the steps to setup the ATM Business in India –
- Setup a Legal Entity Firm like Individual or Sole Proprietorship Firm in India.
- Open a current bank account.
Now talk about the Companies and their Requirements which is providing the White Lable ATM Services so you can rent your space to them to setup the ATM Machine in your area.
How to Setup ATM with Tata IndiCash –
The subsidiary Company Tata Communications payments solutions Ltd of the TATA Communication has been authorised to set up the white label ATM Across the country. its has been started by the name of “IndiCash”.
Its required the following things –
a) You have to require the space of at least 60 to 100 square feet.
b) Required the Flat Roof to setup the VSet.
c) apart from this you have to require the Authority Letter and NOC
d) 1 Kilowatt of electricity connection also required.
So after the fulfill above requirements you have to apply online through indicash website and upload the location picture and get the approval.(Links are given at the bottom of Article)
How to Setup ATM with Muthoot Finance
Muthoot Finance is the NBFC Company which also provides the White Label ATM Machine. So if you have space then you can provide on rent to Muthoot finance. its required only the 40 to 60 square feet space with the proper location like in Malls or busy street or road or anywhere.Muthoot finance mainly required the space on the ground floor.
For the apply, you have to simply go to Muthoot Finance official website and upload your location pictures and other details. (Links are given at the bottom of Article)
How to Setup ATM with BTI
Apart from the IndiCash and Muthoot Finance, An Australia-based bank tech group company BIT Payments Private limited Company also providing White Label ATM Machine. RBI gives the license to this company which already setup more than 1000+ ATM Across India. Its moly activated in MP, Jharkhand, and Uttarakhand.
You have to similar apply on their official website. (Links are given at the bottom of Article)
Links for apply White Label ATM –
- Tata IndiCash ( Right Now Link is Not Working on their Website)
- Muthoot Finance White Label ATM
- BIT White Label ATM
Hope this article helpful for you and gives you knowledge about the New Business Opperunity in India. For Setup a White Lable ATM Firm(Business Registration) you can Order on MyOnlineCA.