ATM full form is ‘Automated Teller Machine’ and it is used for financial transactions. It is an automated machine that doesn’t require any personnel. You can use it directly for withdrawing cash and other basic functions using your ATM Card and PIN.
You can find ATMs on almost every street nowadays. It provides many benefits for both the bank and the customer. Some of them are mentioned below -
You can withdraw money securely using your ATM/Debit card
You can check your account balance
It reduces the need of having to visit the bank branch for simple transactions
Some select ATMs also have the function of withdrawing or opening a new Fixed Deposit account, booking tickets, and paying utility bills
They can be accessed 24*7 and also on holidays
It reduces the workload of bank officials as many important and regular services can be done directly from the ATM
Now that you know the ATM full form and how it helps aid banking, let us look at how you can operate an ATM -
STEP-1: Go to an ATM kiosk with your card. You don’t need to visit the ATM of your respective bank, since all cards work at all ATMs.
STEP-2: Insert the card in the ATM slot in the correct way. Some ATMs keep your card in the slot while you continue the transaction, while some give it out after reading it.
STEP-3: Follow the instructions on the screen. Some ATMs have a touch screen, while others allow you to select options using the buttons beside the screen.
STEP-4: Select the service from the list provided. You can withdraw money, enquire balance, deposit funds, etc. based on the ATM type.
STEP-5: Enter the details based on the service selected, and also to type of account you have.
STEP-6: Enter your 4-digit secure PIN when prompted, and confirm it.
STEP-7: Your transaction will be completed. If your card was inside the ATM while the transaction was being carried out, don’t forget to collect it.
Please note that it is not advised to share your ATM PIN with anyone or write it anywhere. You can choose to print a transaction receipt, however, be mindful of paper wastage.
ATMs are of various types - having different sizes and designs. But, some basic parts are common for all ATMs. They are listed here -
This is the slot where you need to insert your card. Please notice which side the strip reader is on so you can get an idea of how to insert the card.
This has numbers and options to select, cancel, and delete. You can enter the PIN using this. If your ATM doesn’t have a touchscreen display, these can also be used to select options on the screen. There may also be additional buttons beside the screen to help you select options.
The display screen is where you can see the options and services offered by the ATM. It acts as a guide to complete a transaction.
This is where the cash is dispensed from, when you choose the cash withdrawal option. It may be situated anywhere on the front of the machine and is closed with a small collapsible cover. When cash is dispensed, be careful to collect all the notes.
There is always a receipt printer that prints your transaction details if you want it to. ATMs will ask you if you want a receipt and if you select ‘Yes’, a small receipt will be dispensed.
ATMs have speakers that generally give audio instructions for the transaction being carried out. It offers additional help in case you are having trouble with the ATM process or if you can’t read the ATM screen.
ATMs can be either basic ones that just allow balance inquiry, cash withdrawal, PIN change, or mini statement checking options. Other ATMs can be more complex and may allow services like cash or cheque deposits, bill payments, etc.
Based on the label assigned, ATMs can be of 7 types -
Green Label ATMs that are used for agricultural purposes
Yellow Label ATMs that are used for e-commerce transactions
Orange Label ATMs that are used for share transactions
Pink Label ATMs that are specifically for females. This helps them avoid the long queues at general ATMs.
White Label ATMs are not owned by banks. They were introduced by the TATA group.
Brown Label ATMs are those that are operated by a third party other than a bank
Biometric ATMs need fingerprints & eye scanners to be operated.
Life is somewhat unimaginable without ATMs now. No one goes to bank branches anymore to withdraw money unless they have to withdraw a huge amount at a given time. This also helps as they are functional 24*7 and you can transact at your convenience.
It can be described as a self-service banking outlet. You can access your account using your card from any bank’s ATM.
The charges of using an ATM depend on your bank, but generally the first 3-5 transactions every month are free. Once the free transactions have crossed, you have to pay a nominal charge for every transaction. Some banks only charge money if you transact using another bank’s ATM after the free transaction limit has been crossed.
ATM full form is Automated Teller Machine and the full form of PIN is Personal Identification Number.
The first ATM in India was set up by HSBC in Mumbai in 1987.
You can use an ATM card to withdraw cash, enquire about your account balance, change your ATM PIN, and check your mini statement. Nowadays, all banks give ATM-cum-Debit cards, which can also be used for shopping and direct transactions.
An ATM card or a Debit-cum-ATM card is plastic money. It is connected to your bank account and can be used to transact funds directly from your bank.
Yes, you can have 2 or more ATM cards for one bank account. You will, however, have to pay the annual fee for the maintenance of each card.
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