Renting out space to banks or ATM franchises has become one of India’s most passive and secure ways of earning monthly income from real estate. Banks continue to expand their ATM networks as cash transactions remain steady in semi-urban and rural India. This opens up a steady income stream for property owners – with minimal effort.
Here’s a step-by-step guide on offering your place on rent for an ATM installation.
Step-by-Step Guide to Renting Out Property for ATM Setup
1. Assess Your Property Location
ATMs are primarily installed in:
- High footfall areas like markets, residential complexes, near railway stations or bus stands
- Locations with 24/7 accessibility
- Semi-urban and rural locations with limited ATM density
Tip: Banks use population and usage data to select locations. Use RBI’s ATM statistics to check ATM density in your area.
2. Ensure Your Space Meets Basic Requirements
Most banks and white-label ATM operators require:
- 40 to 100 sq. ft. space on the ground floor
- Uninterrupted power supply with backup (like inverter/UPS)
- Internet connection or provision for leased line/fiber
- Permission for external branding or signage
- Secure premises, preferably with a shutter or CCTV coverage
3. Reach Out to Banks or ATM Franchise Operators
You can directly contact:
- Public/Private Sector Banks (SBI, HDFC, ICICI, etc.)
- White-label ATM operators (WLA) like:
- India1 Payments
- Tata Indicash
- Hitachi Payment Services
You may also register your property via:
- Online Real Estate Platforms like MagicBricks or 99acres
- ATM franchise listing portals
- Local vendors who install ATMs on behalf of banks
Note: Beware of fraudulent listings. Genuine banks or WLAs never ask for upfront fees. Always verify on their official websites or emails.
4. Submit a Proposal/Application
You will typically need to share:
- Property details with photos
- Ownership proof (Title deed, Property tax receipts)
- NOC from society (if in a residential complex)
- Expected rent or lease amount
- Utility availability (power backup, water, etc.)
Banks may conduct a site inspection before finalizing.
5. Legal Agreement and Installation
Once your site is shortlisted:
- A lease agreement is signed (usually 5 to 10 years)
- Banks/WLAs install their ATM, power backup, surveillance, etc.
- Some may pay an advance or refundable security deposit
Agreements are usually notarized and include clauses on maintenance, access hours, signage, and liability.
How Much Can You Earn?
Typical Monthly Rent for ATM Space in India (Verified Estimates):
| City Tier | Rent per Month (INR) |
|---|---|
| Metro cities (e.g., Mumbai, Delhi) | ₹25,000 – ₹60,000 |
| Tier 2 cities (e.g., Nagpur, Surat) | ₹15,000 – ₹35,000 |
| Semi-urban areas | ₹8,000 – ₹20,000 |
| Rural towns | ₹3,000 – ₹10,000 |
On average, a property owner in a decent commercial area in a Tier 2 city can earn ₹20,000–₹30,000/month, with annual escalation clauses (5–10%) added to the lease.
Is It Safe? Who Handles Maintenance?
Yes, banks or ATM operators handle:
- Machine maintenance and refilling
- Security (CCTV, alarm systems)
- Power equipment like UPS or air conditioning
- Insurance (in most cases)
Legal and Tax Considerations
- Rental income is taxable under Income from House Property
- You can claim standard deduction of 30% under Section 24
- Ensure the lease is registered if it’s more than 11 months
- You may need a GST number if your rent exceeds ₹20 lakh annually (rare for ATM rents)
Bonus Tip: Combine with Vending Machines or EV Chargers
If your location permits, combining ATM installation with:
- EV charging stations (low-cost setups now popular)
- Automated vending machines (coffee, snacks) can maximize returns from the same small space.
With minimal effort and no inventory costs, giving your property on lease for ATM installation is a smart real estate monetization strategy. In a time of rising rents and digital finance, cash-based services still have deep demand, especially in India’s interiors.
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