Automated Teller Machines, popularly referred to as ATMs, are one of the most useful advancements in the banking sector. ATM allows banking customers to avail quick self-serviced transactions, such as cash withdrawals, deposits, and fund transfers.


What is ATM?

ATM full form is Automated Teller Machine, it is an electronic device that enables customers of banks and financial institutions to perform a variety of financial transactions like cash withdrawals, deposit, funds transfers, account information, changing ATM PIN or linking Aadhaar to the bank account any time and without the need for interaction with bank staff.

History of ATM

ATMs arose after out-of-hours cash distribution developed from bankers needs in Japan, Sweden, the United Kingdom, and the United States. Japan invented the Computer Loan Machine which supplied cash. And after a few years, Britain deployed the world’s first cash dispensing machine in London in 1967. The machine was put in use by Barclays Bank in Enfield Town, North London. The machine was invented by John Shepherd-Barron and the firm De La Rue.

ATMs were introduced to the Indians in the early 1990s aided by foreign banks. As most of the banks were suffering from a serious handicap at that time due to the lack of a strong branch network, ATMs appeared to be the best antidote for the problem. Since then, innovations in ATM technology have come a long way and customer receptiveness has also increased by leaps and bounds.


How ATM Machine Works?

Using an Automated teller machine is very easy. Follow the below mentioned ways to use an ATM machine:

Step 1: Visit the nearest ATM and insert your ATM card in the ATM.

Step 2: Choose your language from the options appearing on the display screen.

Step 3: Select the transaction type from transactions such as deposit, transfer, withdrawal of cash, etc.

Step 4: Select the Type of Account from current, saving, and salary accounts.

Step 5: Enter the withdrawal amount and four-digit ATM PIN.

Step 6: Collect the Cash.

Step 7: Take a printed receipt.

Step 8: If you want to perform another transaction, then select that option.


What are the Types of Automated Teller Machine?

Different types of ATMs in India are:

  • On-site ATM – ATM Machines which exist within the premises of the bank.
  • Off-site ATM – Off-site ATMs mean the machine which operates outside the bank premises.
  • Worksite ATM – Those ATMs are located within the premises of a company and are usually meant only for that company’s employees.
  • Cash Dispenser – ATM that allows only cash withdrawals, balance inquiry, and mini statement.
  • Mobile ATM – This type of ATM is a machine that moves in different areas for the users. COVID 19 has led to a surge in the number of Mobile ATMs.
  • White Label ATM – White Label ATM means the automated teller machine which Non-Banking Financial Companies provide.
  • Green Label ATM – Green label ATMs are provided for Agricultural Transaction.
  • Orange Label ATM – Orange label ATMs are the machines that are provided for share transactions.
  • Yellow Label ATM – Yellow label ATM Machine means the ATM which is provided for online purchase.
  • Pink label ATM– These are the ATMs machines that are provided for women.
  • Brown label ATM – Brown label Automated Teller Machines are those ATMs where hardware and the ATM machine’s lease are owned by a service provider. However, cash management and connectivity to banking networks is offered by the sponsor bank

What are the ATM Charges?

Banks provide ATM cards without any charge at the time of opening the bank account. However, banks charge for using ATMs. There is no cost for the initial few transactions but after a cap level cost is charged in every additional transaction. The charges of the top banks are as follow:



What are the Features of Modern ATM?

Automated teller machines (ATMs) have been changing over time and the machine’s technology is becoming more sophisticated to provide the best experience to the user and make the transactions safer and secure. Some of the vital changes are:

  • Multipurpose nature of ATM Machine: Unlike in the past, ATM Machines are not merely providing the facility of dispensing cash, but today they provide facilities of depositing the cash, fund transfer, payments of bills, and generating PIN and mini statements. These are just a few services, and the banks provide many other sophisticated services.
  • Easy to use: The modern ATM Machines are designed so that it becomes easier to use for everyone, including illiterate individuals and specially-abled people. Technology like biometric identification scanners makes it convenient to use for almost everyone.
  • No language barrier: India is a country with infinite culture and language. The use of one language in ATMs becomes a roadblock for many users. Multilingual or the use of many languages in ATMs acts as an antidote to this problem. Modern ATMs are equipped with multiple languages and the user can choose the language of his choice, which makes it easier for him to use the machine.


What are the Benefits of using an ATM Card?

The benefits of an ATM card are as follows:

  • ATM Machines are conveniently located at multiple locations. Customers visit the ATM of any bank to perform any transaction.
  • It helps in withdrawing the cash in a matter of minutes and thus saves time.
  • The process of getting an ATM card is hassle-free, and no documentation is required for an ATM card. Almost all banks provide ATM cards at the time of account opening.
  • It helps in getting the details of the transactions, total balance, and mini statement.
  • Some ATM Machines also provide the facility of depositing cash and fund transfer.
  • ATM is also used in paying utility bills and several other bills and payments.
  • ATM Machine is available 24*7, 365 days a year.
  • ATM is safe and secure as the use of an ATM is restricted only to the person who knows the PIN. Thus, if the customers keep the PIN confidential, no one other than the customer can use the ATM.
  • ATM Machines are self-service and thus reduces the workload of the bank staff.
  • ATM reduces the requirement for carrying cash as individuals can withdraw at any ATMs, which acts as a cashpoint.


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