What is ATM?
Automatic Teller Machines (ATM) are electronic machines that provides financial transactions by giving financial information. The name suggests that these machines are ‘automated’, so there is no need for a human cashier or bank representative to handle these transactions.
ATM’s have become integral to our daily lives. These machines allow us to access our bank accounts and perform various financial transactions, such as withdrawing cash, depositing Money, and checking account balances, without visiting a bank branch.
But do you know the complete form, definition, and uses of ATM? This article will delve deeper into the topic and provide a comprehensive understanding of what ATMs are, how they work, and the various services they offer.
Full Form of ATM
ATM full form Automatic Teller Machine. It is a self-service electronic device that enables customers to perform financial transactions without human assistance. ATMs are also known as cash machines, cash points, and bank machines.
Definition of ATM
How do ATMs Work
ATMs are connected to a network of computers linked to the financial institution’s central computer system. When a customer inserts their ATM card into the machine, it reads the magnetic strip on the card, which contains the customer’s account information. The ATM then communicates with the financial institution’s computer system to verify the customer’s identity and account balance. Once the customer’s identity is confirmed, they can perform the desired transaction, such as withdrawing cash or checking their account balance.
Services offered by ATMs in India
1. Use as Cash withdrawal:
Customers can withdraw cash from their accounts using ATMs. They can choose the amount they want to withdraw, and the ATM will dispense the Money.
2. You can Deposit Money:
Customers can deposit cash and cheques into their accounts using ATMs. They can insert the cash or cheque into the machine, and the ATM will credit the amount to their account.
3. Use as Transfer funds:
Customers can transfer money between their accounts using ATMs. They can select the bank account from which they want to withdraw the funds and the account they want to share.
4. Check your bank account balance:
Customers can check their account balance using ATMs. They can select the account they want to check off, and the ATM will display the current balance.
5. Other Services offered at ATM:
Many ATMs also offer additional services, such as the ability to print mini-statements, change personal identification numbers (PIN), pay bills, and many more.
ATMs are a convenient and efficient way to access our bank accounts and perform various financial transactions. They offer a wide range of services that make banking more accessible and convenient for customers.
Types of Automated Teller Machines (ATM) in India
In India, ATMs have become common in urban and rural areas, with many banks and financial institutions operating them. However, not all ATMs are the same, and there are several ATMs in India, each with unique features and functions. This article will discuss the different types of ATMs in India and their uses.
1. White Label ATMs
White Label ATMs are owned and operated by non-banking companies, such as Tata Communications Payment Solutions Limited, Prizm Payment Services, Hitachi Payment Services, and AGS Transact Technologies Ltd. These ATMs are not branded with any specific bank’s logo and offer services such as cash withdrawal, deposit, balance inquiry, and mini-statement. They are often located in remote or underserved areas, and their main objective is to increase financial inclusion and provide banking services to the unbanked population.
2. Brown Label ATMs
Brown Label ATMs are owned and operated by non-banking companies but are branded with a specific bank’s logo. These ATMs offer services similar to White Label ATMs, but customers can only use them if they have an account with the bank with which the ATM is branded. They are often located in urban and semi-urban areas, and their main objective is to increase the bank’s reach and provide more convenience to its customers.
3. On-Site ATMs
On-site ATMs are owned and operated by banks and are located within the bank’s premises. These ATMs are available only to the bank’s customers and offer services such as cash withdrawal, deposit, balance inquiry, and mini-statement. They are often used by customers who want to avoid long queues at the bank’s counters.
4. Off-Site ATMs
Off-site ATMs are owned and operated by banks, but they are located outside the bank’s premises. These ATMs offer services similar to On-site ATMs but are available to all customers, regardless of which bank they have an account associated with. They are often located in high-traffic areas, such as shopping malls and airports, to provide more convenience to customers.
5. Micro ATMs
Micro ATMs are small, handheld devices that provide banking services in remote or underserved areas. These ATMs are often used by business correspondents (BCs), whom banks authorize to provide customer banking services. They offer services such as cash withdrawal, deposit, balance inquiry, and mini-statement.
In conclusion, the various ATMs in India serve different purposes and are located in other areas. White Label ATMs and Micro ATMs are used to increase financial inclusion and provide banking services to the unbanked population. In contrast, Brown Label ATMs, On-site ATMs, and Off-site ATMs are used to improve customers’ convenience and expand banks’ reach.