Running an Unmanned ATM: Is a Gram Panchayat NOC Really Necessary?

Hi Folks,

We are running ATM machines with an unmanned kiosk concept (i.e., without human beings / zero employees) within the jurisdiction of the Gram Panchayat where S&E is not applicable or the Municipal Authority is unable to issue licenses under the Shop & Establishment Act. Is a Gram Panchayat NOC mandatory for running an ATM machine?

Please guide...

Janardan

Licensing Requirements for Running an ATM

For running any business, even if it is for charity and not for profit, a license from the local authority (Gram Panchayat/Municipality/Corporation) is required. When you run an ATM counter/kiosk, the process is not different. You should obtain permission to operate an ATM from the local administration. Since, for the local administration, the entity running the ATM, whether it is directly managed by the bank or through a third party, is not an issue, the responsibility to obtain the license may lie with the bank.

It is not the municipal authorities who will issue a license under the Shops and Commercial Establishments Act, but it is the Labor Department that will issue this certificate.

Regards, Madhu.T.K