ATM Full Form | What is ATM?

ATMs are Automated Teller Machines. They are also known as cash machines or Automated Bank Machines. The first ever ATM was launched in London, the United Kingdom in the year 1967. In India, the first ATM was launched in Mumbai in the year 1987. ATMs are electronic systems that allow users to perform financial transactions without the help of human cashiers. 

They are self-service banking systems. Different banks set up these cash machines across different parts of the country and users can use them irrespective of whether they have an account in that bank. Any person with a debit card or credit card can access cash from the ATM. Any transactions like cash withdrawals, cash deposits, transferring money, bill payments, checking balances, changes of the pin number, etc can be performed in ATMs. This service is considered to be the greatest advancement in the banking sector.

Performing transactions at an ATM is very simple and understandable to any individual if they do not have much knowledge. The only important thing to carry is the ATM card and remember the Pin number or the personal identification number which ensures the security of the account. The card can be swiped and payments can be done easily. 

The liquid cash can be obtained from ATM at any time and location. All public places like hospitals, petrol bunks, malls, highways, railway stations, and airports are equipped with ATMs. After the transaction is made ATM provides a receipt that has your transaction history as proof of all the previous transactions by you. Also, there is a certain limit on the amount of money a person can withdraw per day and per week which is based on the person’s bank account status. 

ATMs have reduced the stress of carrying a lot of liquid cash while traveling out because almost every part of the country and developed cities are provided with these machines everywhere. It reduces the stress of people as they do not have to go and visit the bank and wait for their turn in a queue and interact with them in charge to perform minimum transactions which is very convenient and a lot of time is saved. People do not have to travel long distances to reach their bank branches instead they can make their own transactions on their own which has made their financial lives easier. 

ATMs have increased people’s accessibility and convenience. It enables people to keep cash on hand in times of emergency. It is especially beneficial when you are not near your bank branch where you have an account or when banks are closed. Because you are not reliant on them, you may withdraw cash even on bank holidays or after work hours also. Since the increase of online payments, there has been a decline in the usage of ATMs.

The ATMs are safeguarded by security who ensure no thefts take place and money in the machine is safe. These machines have reduced the workload of bank officials as they can focus on more important transactions or processes. ATMs may vary in size but their components are the same. They consist of input devices like Card Reader, a keypad, and also Output devices like a screen, Receipt Printers, cash dispensers, and Speaker. 

Types Of ATMs:

There are 2 types of ATMs set up. They are :

1. Onsite ATMs: these ATMs are located in the bank or on the bank premises.

2. Offsite ATMs: these ATMs are located in different places far from banks.

Benefits Of ATMs:

1. Cash deposits and withdrawals
2. Open fixed deposits
3. Transfer funds
4. Reliable during emergencies and crisis
5. Easy to setup and maintenance is cheaper
6. Get cash at any time and anywhere
7. Can be accessed 24×7 everywhere