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The automated teller machine (ATM) is an automatic banking machine (ABM) which allows customer to complete basic transactions without any help of bank representatives. There are two types of automated teller machine (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 which accepts the deposit, provides credit card payment facilities and reports account information.

It is an electronic device which is used by only bank customers to process account transactions. The users access their account through special type of plastic card that is encoded with user information on a magnetic strip. The strip contains an identification code that is transmitted to the bank’s central computer by modem. The users insert the card into ATMs to access the account and process their account transactions. The automated teller machine was invented by john shepherd-Barron in year of 1960.


Advantages of Automated Teller Machine:

  •  The ATM provides 24 hours service
  •  The ATM provides privacy in banking communications
  •  The ATMs reduce the work load banks staff
  •  The ATM may give customer new currency notes
  •  The ATMs are convenient to banks customers
  •  The ATM is very beneficial for travelers
  •  The ATM provide services without any error

Features of Automated Teller Machine:

  • 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 feature in your foreign language.


                                                                 Different Types Of ATM

1.On site ATM –within the premises of bank

2.Off site ATM – Outside the bank premises

3.Worksite ATM-Is located within the premises of an organisation and is generally meant only for the employees of the organisation.

4.Cash Dispenser-Allows only cash withdrawls,balance enquiry and mini statement requests, cash dispenser(CD)

5.Mobile ATM- refers to an ATM that moves in various areas for the customers. Few priavte banks have introduced ATM on wheels.

6.White Label ATM – Provided by NBFC

7.Green Label ATM – Provided for Agricultural Transaction

8.Orange Label ATM – Provided for Share Transactions

9.Yellow Label ATM – provided for E-commerce

10.PINK label ATM—women banking

11.BROWN label ATM– ATM are those Automated Teller Machines where hardware and the lease of the ATM machine is owned by a service provider–but cash management and connectivity to banking networks is provided by a sponsor bank .



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