Renting a commercial property for ATM Installation: A Complete Guide

The requirement for ATMs across urban centers increases as the population & financial inclusion grow. If you have a commercial property, you can get profitable returns on your investment by leasing your property to banks for ATM installation. Generally, when a bank needs rental space, that specific bank publishes the advertisement with the property requirements that the bank is looking for. If your property is up to the criteria, you can participate by applying your application with the property documents such as a sale deed, a title deed, and NOC to the concerned bank. The bank will collect the application and announce the shortlisted applicant through advertisement. Here is a step-by-step guide. 

How is an ATM installed? 

The generally established guidelines for applying for an ATM set-up on commercial property are given below. However, depending on your place of property, you can also reach out to a registered broker or property agent to learn about it in detail:

  • File an application in a bank or any other Non-Banking Financial Company (NBFC) for ATM installation
  • The application should include complete property details such as area, locality, and nearby landmarks, among others.
  • The institution will review the proposal, identify the area’s demand and footfall, and accordingly process the application. Typically, banks prefer freehold properties with no encumbrances such as mortgages, etc. 
  • On the approval of your application, you’ll need to submit other required details in the prescribed form.
  • The landlord also needs to provide an area for a server room and dish facility for network connectivity.
  • The bank or NBFC will enter into a lease agreement with you concerning the property.

The usual rent offered by banks varies between Rs 62 per sq ft and Rs 210 per sq ft. However, this is subject to change as per the prevailing market rates, locality, and the number of potential daily transactions.

The monthly rent of a minimum of Rs. 20,000 and a maximum of Rs. 80,000 can be expected, depending on the location. The location plays the main role here in deciding the rental income. But Banks and ATMs’ rental income is mostly five times more than the normal rental income.

What factors should be considered before renting out space for ATM installation?

Here are a few things that a property owner should consider before leasing out the area for the installation of an ATM:

  1. The surface area of the leased property needs to be between 60-100 sq ft.
  2. The ceiling needs to be made of Class-B concrete and has an NoC from all the residents of the building.
  3. A landlord is also required to provide space for a server room and an area for the installation of network connectivity on the roof.
  4. Landlords must pay a security deposit of up to Rs 3 lakh before signing the lease. If the landlord opts for the franchise model, they must bear maintenance, operations, and security costs.
What are the leasing models?

Two major ATM leasing models are White Label ATM and Franchise ATM:

White Label ATM – Any bank does not own white Label ATMs. They are the property of NBFCs. The Reserve Bank of India (RBI) in 2011 permitted the NBFCs incorporated in India, registered under the Companies Act, to set up white label ATMs. These NBFCs sign a ‘Service Level Agreement’ with a sponsor bank and a network provider that ensures cash flow in the respective ATMs. Customers of all banks can use these ATMs, but they will have to pay a fee for using the service. All transactions through these ATMs are chargeable.

Franchise ATM – Another way to use your commercial space is by getting an ATM franchise. This model was launched by Tata Communications Payment Solutions Ltd (TCPSL) with Franchise India. In case of Franchise ATMs, areas with high population and transactions are preferred.

Apart from the two types mentioned above, ATMs can also be categorized based on their labels. Some of these labels are listed below:

  1. Green Label ATMs- These are used for agricultural purposes
  2. Yellow Label ATMs- These are used for e-commerce transactions
  3. Orange Label ATMs- These are used for share transactions
  4. Pink Label ATMs- These ATMs are specifically for females to help avoid the long queues and waiting time
  5. Brown Label ATMs- These are operated by a third party other than a bank
Frequently Asked Question (FAQ)
1. Is there any minimum agreement period between Lessee and Banker for ATM on rent?

Ans: Yes, there is a minimum period of the agreement. It is generally of 2 years.

2. Is renting a space for ATM a good business opportunity?

Ans: Yes, because only 23 ATMs are available per lakh population. If you are seeking a good return on investment with minimum investments, then Renting your space for ATM is a good option for you to consider. 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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  1. My name Dr parashar Banerjee.9831078274.i have a 200 sqft space in ground floor.address-172/7 picnic garden road laskarhat Milan tirtha club more market area near VIP bazar Kolkata -39.india.westbengal.i am interested to give my space for rent Bank ATM purposes.

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