Full Form of ATM

What is an ATM?

An Automated Teller Machine or ATM is an electro-mechanical machine consisting of automated banking platforms allowing clients to perform smooth transactions without the assistance of a teller or a branch representative. The credit or debit card holders would be able to withdraw cash from most ATMs.

As they allow the clients to conduct fast self-service transactions such as cash withdrawals, deposits, bill payments and account-to-account transfers, ATMs become very important in the fast-paced world of today. For cash withdrawals, fees are usually paid out for cash by the bank where the account is held. By using an ATM which is operated directly by the account holding bank, some of these charges can be avoided.

In different parts of the world, ATMs are also recognized as ABM or Automated Bank Machines.

Some Key Points:

• Automated teller machines (ATMs) are computerised banking terminals that enable customers to conduct transactions without visiting a bank office.
• Some automated teller machines are only cash dispensers, while others offer a range of services, including check deposits, balance transfers, and bill payments.
• Since their introduction in the mid- to late-1960s, the number of ATMs has increased to nearly 2 million globally.
• The ATMs of today are technical wonders, with the ability to receive deposits and provide a variety of additional financial services.
• To minimise ATM costs, utilise a bank-branded ATM as frequently as feasible.

ATM: History

In 1967, in London, the first ATM turned up at a Barclays Bank branch. Though there are records of a cash dispenser in Japan in the mid-1960s, the Barclays bank is considered to be the first ATM. Interbank transactions were allowed to a customer in the 1970s.

Presently there are over 3.5 million ATMs functioning around the world.

Main Elements of an ATM Machine

Even though each ATM is different in how it looks, they all have the same basic parts:

• Card Reader: The chip on the front of the card or the magnetic stripe on the back are read by this part.
• Keypad: The customer uses the keypad to enter information, such as their personal identification number (PIN), the type of transaction they want to make, and how much they want to make.
• Bills come out of the machine through a slot that is connected to a safe at the bottom of the machine.
• Printer: If customers need them, they can ask for receipts to be printed here. The type of transaction, the amount, and the amount left in the account are all written on the receipt.
• Screen: The ATM gives the customer instructions that help them complete the transaction. Information, like account information and balances, is also sent on the screen.

Functions OF ATMs

• Deposit of cash
• Mini statement
• Regular payment of the bill
• Account balance details
• Recharge of prepaid mobile
• Change the pin code
• Withdrawal of cash
• Transfer of cash
• Accounts details

What are the Advantages of Using an ATM?

• You can get ATM service 24 X 7.
• The work pressure on the bank staff is reduced considerably.
• ATMs are more useful for travellers.
• The ATM service is without any error.