MyLoanCare is a FREE of cost service for borrowers Apply Online

Get Cashback of Upto ₹ 1,000* on Loans Apply Online

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

Menu

ATM

Automated Teller Machine

Last Updated 15th Apr 2021
  • ATM full form is Automated Teller Machine; it enables users to withdraw cash, deposits and transfer funds.
  • You can identify ATMs near your place by visiting the official website of the Bank or searching on a web browser.
  • ATM cards can be used in paying utility bills and several other bills and payments.
  • ATM Machines are available 24*7, 365 days a year.
  • It is safe and secure as the use of an ATM card is restricted only to the person who knows the PIN.
  • Contactless Cash Withdrawal from ATM New
Apply for Savings Account

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.

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 means the machine which operates outside the bank premises.
  • Worksite ATM - Those ATMs which are located within the premises of a company and is usually meant only for that company’s employees.
  • Cash Dispenser - ATM that allow only cash withdrawals, balance enquiry 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 which 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 of the bank account. However, banks charge for using the 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:

Bank Per month Free Transactions Cost after free Transactions
SBI 5 transactions at SBI ATMs and 3 at Other ATMs ₹ 25 per transaction
ICICI Bank Free transaction at all ICICI ATMs ₹ 25 per transaction at all non-ICICI ATMs
HDFC Bank First 4 transactions ₹ 150 per transaction

What are the Features of Modern ATM?

Automated teller machines (ATM) 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 use of many languages in the 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.

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 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.

Latest news about ATM Withdrawal

  • Withdraw Cash without touching the ATM
    In the times of COVID, the MasterCard has now partnered with AGS Transact Technologies to provide contactless cash withdrawal service to the people. To withdraw cash, the user needs to scan the Quick Response Code on the ATM using the mobile application of your bank. Finally, enter the amount to be withdrawn and PIN of your ATM Card. ATM will then process the money.

FAQs

What is the full form of an ATM and PIN?

ATM full form is Automated Teller Machine, and the full form of PIN is Personal Identification Number.

What does ATM mean?

ATM meaning 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, deposits and funds transfers without the need for interaction with bank staff.

What is the ATM PIN?

Personal Identification Number (PIN) is a 4-digit number that allows you to access your account information and perform other activities using an Automated Teller Machine (ATM).

How can I generate my ATM PIN?

You can generate your ATM PIN by any of the below-mentioned ways:

  • Visiting the nearest ATM
  • Via Internet Banking.
  • Calling customer care
  • Sending an SMS to the customer care

Can I generate an ATM PIN online?

Yes, customers are also provided with an option to change the ATM PIN online by internet banking.

How can I change my ATM PIN online?

ATM personal identification (PIN) number can be changed online via internet banking.

How many times can an ATM card be used in a month?

There is no limit on the number of times you can use your ATM card in a month. However, banks usually allow up to five free transactions per month at their ATM and three free transactions at other banks' ATMs. Banks levy fee if you exceed these limits. The charges can vary from ₹ 8-₹ 25, depending on the type of transaction.

What is the daily cash withdrawal limit through the ATM?

The daily cash withdrawal limits of banks vary from each bank. Currently, SBI offers ₹ 1 Lakh, HDFC Bank offers ₹ 1 Lakh, and PNB offers ₹ 1 Lakh daily cash withdrawal limit.


*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
Loader
Please wait while your information is being processed...