ATM Full Form: What is Automated Teller Machine and How to use ATM

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ATM Full Form

ATM is Automatic Teller Machine

if you have an account in any bank, then at some point of time you must have had to deal with ATM and you must have withdrawn cash from ATM machine using ATM card. Instead of withdrawing cash i.e. cash from banks, today people consider it easier to withdraw from ATM, but perhaps very few people know what is the full form of ATM and who invented it. When and where was the world’s first ATM installed and what is its full history.

Automatic Teller machine which is used for the withdrawal of money i.e. the device which is used to withdraw money is called ATM. It is called automatic because it works automatically, teller means that it automatically counts money. But it is not that ATM is known by the same name everywhere, the screen of the ATM machine comes out from where money can be withdrawn. What happens if an ATM is installed by making a hole in the wall, that the machine gets some safety.

What is an ATM?

You have often seen these ATM machines in different parts of the city. With the advent of ATM machines, banking transactions have become much easier and faster. The ATM machine has made it easier to withdraw and send money, which has greatly reduced the need to knowingly fill in the slips at the bank and then get the signature and seal of the officer on it.

Now you get a plastic card from the bank to transact money from this machine. Along with this card you are given a confidential PIN (Password). Which you have to type after inserting your card into the machine. Only then is it possible to transact your money.

Why need ATM

ATM is used exclusively for withdrawing money. Almost all the banks are installed here. There are 22 nationalized banks in India and there are other private banks as well, almost all banks have ATM machines.

ATM is called ABM which means Automatic Banking Machine and here the word banking means “transaction of money”. So in the same way ATMs are getting different names along with places and countries, for example in many countries it is called Cash Point and in many countries

Statistics of ATM

All over the world, where ATMs are installed or in all the countries where ATMs have been established, an organization has been jointly formed for them, whose name is ATMIA, whose full form is ATM Industry Association. This association is headquartered in the United States of America and was established in the year 1997. The main reason for establishing this institution is that wherever there is a ATM in the whole world, if there is a problem or there is a technical issue, then it develops by reviewing and seeing it.

Maintains account of ATMs installed in According to ATMIA, at present there are more than 35 lakh ATMs all over the world. You might find this number a little less but there are total 195 countries in the world and 35 lakh ATMs in 195 countries becomes a very big quantity and their number will increase in the coming time. These ATMs are being developed over a period of time so that they can be used to withdraw money.

How to transact through ATM

First of all an ATM card is required to transact money from any ATM. This ATM card is made of plastic and you get this card from the bank. You also get a confidential PIN with the ATM card. This PIN only works with your ATM card.

Now if you have this ATM card then you have to put this card in the small space in the ATM machine for some time. Sometimes in some machines your card has to be rotated in the given space i.e. card swap. This ATM card contains all your information. This information is stored electronically in the black bar on the card. That information is identified by the ATM machine.

After you swap this card, it appears on the screen with your information. Such as your name and other things. It then asks you the following questions.

Cash Withdrawal:

This involves the withdrawal of your money.

Cash Deposit:

This allows you to deposit money in your account or in the account of others.

Bank Statement:

In this you get information about some of your past transactions. It’s kind of like a Passbook Entry.

Money Transfer:

This allows you to transfer money from your account to another account. After asking the above, you have to choose according to your needs. It then asks you for your PIN from the bank and after typing the PIN your transaction is completed by depositing the amount of money.
Also receive a receipt from the machine after your transaction is completed. From which you understand that your transaction has been done in a complete and safe manner.

ATM History

Luther George Simiel is credited with inventing the ATM. Due to whose efforts, in the year 1961, Citibank was established in New York as the world’s first ATM, at that time the ATM was known as BanksGraf, but at that time the customers considered it easier and safer to transact by filling the form or going directly to the bank, due to which The ATM system could not get any special fame. As a result, the ATM installed in Citibank of New York was removed after only 6 months and it was assumed that the ATM machine is not beneficial in the banking sector.

But this confusion was dispelled when an ATM was installed in Japan in the year 1966, due to which the banks benefited a lot. Because by installing ATM, the employees of the bank got free time, due to which they could concentrate on other work and there was a huge reduction in the crowd in the banks. In view of this, ATMs were also installed in other banks of Japan and from there Gradually, this service began to appeal to the people of other countries as well. Thus, almost from the very beginning, the development of ATMs in developed countries was almost uniform.

Security of the ATM

For the security of the ATM, the ATM PIN is given to the customer along with the ATM card, which is confidential i.e. you do not have to share that PIN with anyone, it is your own. Using which you can withdraw money from your card anytime and anywhere by going to any ATM, but if you do not have a PIN, then even if you have your ATM and how much money is in the ATM, you cannot withdraw them.

Thus it is a security feature which is a 4 digit PIN. For more security, a limitation has been imposed on using the wrong PIN. Due to which if the wrong ATM PIN is entered thrice, then your ATM card gets blocked. At present, ATM security is done through PIN but it is gradually being changed to fingerprint-like technology which will require your fingerprint to withdraw money instead of ATM PIN. in order to enhance security.

Features of ATM

Money deposited through ATM can be withdrawn and how much balance is left and balance information can be obtained in a slip.
Money can be deposited through ATM, and balance can be obtained with the slip.
Mobile number can be registered through ATM and massage alert can be received.
Pin code and new pin can be obtained.
Money can be transferred to someone else’s account.
Money can be transferred to any other ATM card or account through ATM Card.
Bill payment can be done for any organization or work, public or private.

Benefits of ATM

After the arrival of ATM, every customer has now got more convenience in the transaction of money than ever before.
Earlier, he had to run after the employees of the bank to withdraw cash from his account.
But now with the convenience of ATM, customers can get their money whenever they want.
Because to withdraw money from ATM you will need an ATM card.
You will be given a 4 digit code of ATM card which is the secret code.
ATM facility is available 24 hours.
You can withdraw money from ATM whenever you want.

Types of ATMs

On-site ATM:

An ATM located in the vicinity of a bank is called an on-site ATM.

Off-site ATM:

An ATM which is located in a place other than the bank premises is called an off-site ATM.

Online ATM:

An ATM that is directly connected to the bank’s server is called an online ATM.

Offline ATM:

ATM which is not connected to the bank’s server is called offline ATM.

Yellow Label ATM:

There are yellow label ATMs for e-commerce facility.

White Label ATM:

An ATM established by a non-banking financial company is called a White Label ATM.

Pink Label ATM:

These ATMs are for women only.

Green Label ATM:

These ATMs are for agricultural related transactions only.

Brown Label ATM:

This ATM is not owned by the bank and it is leased by the bank and it is linked to the ATM bank.

Orange Label ATM:

It is used to transact ATM shares.

What is Privately Owned ATM Machines?

Privately Owned ATM Machines are ATM machines that are not affiliated with any government or financial institution. The shop, mall, organization on which this ATM machine is located, has the sole and exclusive claim of that organization / shop.

Privately Owned ATM Machines are mainly found in developed countries.
Privately Owned ATM Machines are mainly found in places like grocery stores, shopping malls, restaurants in the US.
These machines are maintained by their owners with the facility to deposit money, send money etc.

Parts of ATM Machine

ATMs are made up of different parts. An ATM machine is created by connecting different parts. Now we are going to learn what those different parts are.

The ATM machine has the following parts:

Central Processing Unit:

This part is the brain of ATM. This part is doing the job of storing all the information. It also carries out commands to other parts.

Magnetic card Reader:

This part identifies you with the card inserted in the ATM machine then you are linked to your bank account.

Keyboard:

Just like your mobile has many buttons, the buttons are also in the ATM machine. With these buttons you complete the transaction by entering your PIN.

Display:

After you insert the ATM card, you get the information about the transaction you want on the screen in the ATM.

Function Key:

These buttons appear on the side of your keyboard or on the screen. These are used to complete or cancel the transaction.

Cash dispenser:

This is a very important part. From this part you get your cash.

Record Printer:

This is a small printer through which you get the receipt of completion of your transaction.

Speaker:

The ATM machine also has a speaker through which you are informed about your transactions from time to time.

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