2. Table of contents
• Automated Teller Machine (ATM) MeaningHow Automated Teller Machine
(ATM) Works?
• History
• Features
• Types
• Example
• Advantages and Disadvantages
3. Automated Teller Machine (ATM)
Meaning
• Automated teller machines (ATMs) or cash machines are simple electronic devices
that provide instant liquid cash and other banking services. Hence, customers can
avoid going to their banks for basic services. Instead, they can use any ATM, even
the ones operated by other banks, using their debit or credit cards.
5. What is an Automated Teller Machine ATM)?
• By using an automated teller machine or ATM we can perform different financial
transactions such as cash deposits, withdrawals, transfer funds, information of account,
ATM PIN change, and also linking the Aadhaar number to the bank account so that the
interaction between the bank staff and the customer can be reduced.
• The automated teller machine (ATM) is an automatic banking machine (ABM) that allows
the customer to complete basic transactions without any help from bank representatives.
There are two types of automated teller machines (ATMs). The basic one allows the
customer to only draw cash and receive a report of the account balance. Another one is
a more complex machine that accepts the deposit, provides credit card payment
facilities and reports account information
6. History of ATM
• The invention of an ATM is marked with milestones of other
electronic devices which provided similar banking services.
7. History of ATM
• In 1960, American inventor Luther George Simjian invented the automated deposit machine, which could
accept coins, notes, and other deposits. It was later called the pantograph. It remained functional for six
months and was removed due to reduced customer response. In 1962, American engineer Adrian
Ashfield developed a card system for secured account holder identification, which could dispense goods
based on this.
• The Japanese computer loan machine, in 1966, provided an automated loan to customers using a credit
card. In 1967, Barclays in the United Kingdom launched the first automated teller machine in North
London or the cash machine. Tellers provide paper cheques which can be entered into the machine for
cash withdrawal. However, the Chemical Bank introduced the first ATM in the United States in 1969 in
Long Island.
• Nevertheless, the era of ATMs is slowly coming to an end. For the first time in 2019, the number of ATMs
worldwide fell by 1%. This is due to the online banking facilities that allow customers to conduct a wide
variety of transactions than an ATM. In addition, the COVID-19 pandemic has further worsened the
situation. With most of the population sitting at home, almost everyone who previously used an ATM
switched to internet banking.
8. Features
• The following are the main features of ATMs:
• ATMs are versatile devices that have many functions. Though its main function is cash withdrawal, customers
can make deposits, transfer money, and check account information using modern ATMs.
• Banks charge a service charge on cash withdrawals, deposits, etc. An advantage of using the customer’s
bank-operated ATM is that the fee will be lesser.
• ATMs can also offer maximum security, at least more than internet banking which is subject to data threats,
hacking, etc. Moreover, the adoption of newer technologies like biometric scanners, and one-time password
(OTP) systems, keep customers safe.
• They are user-friendly and can be used by anyone, despite being a sensitive process. It also operates in
multiple languages, which helps everyone adopt the technology.
• ATMs restrict the withdrawal amount. For example, many ATMs limit the amount drawn in a single drawing and
on a single day. This ensures sufficient cash for other customers.
• They use credit or debit cards to authenticate the user. Using card systems to identify customers securely has
helped ATMs flourish greatly. OTP systems and biometric scanners are currently being used to secure the
process further.
• ATMs are becoming helpful in eliminating paper use by sending alerts and receipts to email and phone
numbers.
9. Types
• ATMs can be classified based on their functions, location, and installation.
1.Based on functions, ATMs can be mono-function or multi-function. Mono-function
devices are the most basic ATMs that allow cash withdrawal and statement printing.
Thus, customers will be able to check their account balance. On the other hand,
multi-function devices are the more complex ones and, as the name suggests, have
more functions like accepting deposits, transferring money, and checking
account information.
2.Based on location, ATMs can be on-premise or off-premise. The former is also called
on-site ATMs and are located along with the bank. Off-premise or off-site ATMs are
located away from the banks, as individual establishments and malls.
3.Based on the installation, cash machines can be interior or exterior. For example,
interior ATMs are installed inside an establishment, while exterior ATMs are installed
in open spaces, like a footpath or outside a building.
10. How to Operate ATM Machine?
• The Automated teller machine is very simple to operate. The step by step algorithm for
ATM operation is discussed below.
• First, need to visit the nearby ATM center & place your ATM card within the machine.
• Select your language which appears on the ATM monitor like your local language, Hindi,
and English.
• Select the transaction type from different transactions like money transfer, withdrawal,
deposit, etc.
• Choose the account type like savings or current.
• Enter your 4-digit ATM pin number and enter the required amount to withdraw.
• Gather the money and collect your receipt
• For further transactions, you can perform another also by selecting the option.
11. • Some Facts about ATMs in India
• Some facts about an ATM in India are discussed below.
• As per 2019 records, the total ATM machines located are 222,318
• The highest number of ATMs used in Maharashtra, India.
• For SBI bank, the highest ATM machines were installed in India are 59,521.
• The first talking ATM in India is located in AhmedabadHighest cash withdrawal limit
in an ATM is 20k to 1 lack depending on the bank.
12. • ATM Maintenance
• The following five things must keep in mind while maintaining the ATM.
• Standard ATM parts must be cleaned
• The machine must be checked for inspecting
• Surveillance camera must be checked whether that is working or not
• ATM must be protected from the elements
13. Advantages
• The advantages of an automated teller machine include the following.
• Automated teller machines are easily arranged in different areas so that every bank customer can visit the machine to execute
any transaction.
• It is used to withdraw the money in a fraction of minutes so that time can be saved.
• To get an ATM card at present, the process is hassle-free because no documentation work is required. All the banks are providing
an ATM card at the time of opening an account.
• ATM machines provide the transaction details to know the balance of the account holder
• Utility payments can be done by using an ATM card
• ATMs provide 24X7 service
• ATM is much secured because it can be used only when the person knows the ATM password.
• ATMs will reduce the workload for the bank employees.
• It reduces the cash-carrying because anyone can withdraw the money at any ATM center so it works like a cashpoint
• The ATM provides 24 hours service
• The ATM provides privacy in banking communications
• The ATMs reduce the workload banks staff
• The ATM may give customer new currency notes
• The ATMs are convenient for banks customers
• The ATM is very beneficial for travelers
• The ATM provides services without any error
14. Features
• The features of the automated teller machine include the following.
• Transfer funds between linked bank accounts
• Receive account balance
• Prints recent transactions list
• Change your pin
• Deposit your cash
• Prepaid mobile recharge
• Bill payments
• Cash withdrawal
• Perform a range of features in your foreign language.
15. Disadvantages
• The disadvantages of automated teller machines include the
following.
• IT charges some amount once free transactions exceed
• Once ATM card damages then cash withdraw is not possible
• Possibility of cash robbery from ATMs
• ATM pin can be easily hacked by criminals by operating an ATM
• The risk of theft is high while going to ATMs
16. Advantages Disadvantages
24X7 operations. Runs out of cash sometimes.
Multiple locations (ATMs operated by
other banks can also be used).
High fees in case of withdrawal from
another bank’s ATM.
Traveling to one’s bank for basic
services is no longer necessary, thus
also reducing the bank’s workload.
Chances of robbery of machines as
such.
Maximum security. Limit to withdrawal.
17. • Examples of ATM transactions
• Various common banking transactions that are often carried out at an ATM include:
• Withdrawing cash
• The most common ATM transaction is the withdrawal of funds from one’s account. Banks typically impose limits on the
maximum amount that can be taken out each day. This amount can vary from bank to bank, as well as among different
accounts offered by a single bank.
• Depositing money
• Account holders can often use an ATM to deposit cash or checks. When making this type of transaction, you’ll be asked to
insert the funds into a slot in the machine. When money is deposited in the form of a check, the bank sometimes might not
provide you with access to the funds until the check has cleared.
• Transferring funds
• You may be able to use an ATM to transfer money between accounts you hold with your bank. For instance, if you wish to
transfer $200 from your savings account to your checking account, this can often be done by selecting the “transfer” option at
the ATM. Like balance inquiries, transferring funds between accounts is also something you can accomplish using your bank’s
mobile app or website.
• Balance inquiries
• You can also visit an ATM to view your current account balance. This feature may come in handy if you wish to know how
much you’re able to spend when using your debit card or writing a check. Alternatively, your account balance is something you
can view by logging onto your bank’s mobile app or website. Knowing your balance can help you keep from overspending
or overdrawing your account.
