ATM Meaning l Full form l what is ATM? l Types of Transactions and more

ATM Full Form | What is Automated Teller Machine - javatpoint

What is the full ATM form l ATM meaning l What is ATM?

The full form of ATM Automated teller Machine.

Meaning –

It is an electronic machine that contains automated banking forums. It allow customers/ holders (Debit/Credit card) to-

  • to make transactions without the assistance of a branch representative.
  • to withdraw cash from most ATMs.

Profitable ATMs allows customers to

  • make quick self-help transactions such as cash withdrawals, deposits, credit card payments and account transfers.

The cost is usually paid by the bank where the account is kept, by the ATM operator, or both. Some of these costs can be avoided by using an ATM directly operated by the bank holding the account.

ATMs are recognized in different parts of the world such as ABM (Automated Bank Machines), or ATMs.

ATM history

  • The first ATM appeared at the Barclays Bank branch in London in 1967. An interbank service that allowed a customer to use one bank card at another bank’s ATM in the 1970’s.
  • ATMs had spread around the world in just a few years, establishing a base in every major country. They can now be found in small island nations like
  • . Currently, more than 3.5 million ATMs are operational worldwide.
  • ATM founder: John Shepherd Barron.
  • ATM PIN Number: John Shepherd Barron thought of keeping a 6-digit PIN code at the ATM, but it was not easy for his wife to remember the 6-digit PIN so he decided to fix the 4-digit ATP PIN.
  • The world’s first floating ATM: India Regional Bank (Kerala).
  • First Person Using an ATM: Famous comedian Reg Varney was the first person to withdraw cash from an ATM.
  • ATM Without an Account: In Romania, a European country, one can withdraw money from an ATM without having a bank account.

Biometric ATM: Biometric ATM is used in Brazil. As the name suggests, the user needs to scan his or her fingers at these ATMs before withdrawing money.

World’s Largest ATM: Installed in Nathu-La mainly military personnel. Its height is 14,300 meters above sea level and is operated by the Union Bank of India.

Different types of ATMs

There are mainly two types of ATMs.

Basic units only allow for cash withdrawals by clients and provide an updated account balance.
Sophisticated machines where you can deposit cash, manage credit line payments and transfers, and access account details.

Basic ATM Parts

ATMs are easy to use. Contains input and output tools, which allow people to deposit or withdraw money freely. Below are some of the most important tools for downloading and installing ATMs.

Input device

  • Card reader – Card reader sees card data stored on an ATM card in a magnetic field, located at the back. Account details are collected by the card reader and sent to the server, once the card has been inserted in the specified location. Cash withdrawal allows money to be withdrawn based on account information and instructions received from the user’s server.
  • Keypad – The keypad provides the user with the requested data on the machine such as personal ID number, amount of money, receipt required or unwanted and other information. In encrypted form, the PIN is sent to the server.

Output Devices

  • Speaker – The speaker is available at the ATM to produce audio input when the button is pressed.
  • Display screen – Displays details on the screen about the activity. It shows the withdrawal steps, each in sequence. The screen can be CRT or LCD.
  • Receipt Printer – Receipt shows you details about the transaction printed on it. Informs you of the time and date of action, balance and withdrawal amount, etc.
  • Cash Dispenser – Cash Dispenser is an important ATM issuer tool as it withdraws cash. The most accurate sensors provided at an ATM allow the money maker to control the appropriate amount of money as the consumer needs.

What the ATM does
Now a day, ATMs have more functions and their basic use of cash withdrawals. Some of these are:

Cash and check deposit
Transfers of funds
Withdrawals and balance checks
Change PIN and small statement
Debt payments and mobile recharge etc.

ATMs in India l ATM

There are two types of ATMs on site and off site. Besides, ATMs are categorized according to their location and function. Here are some of them:

  • Local ATMs

These are a type of ATM located within the confines of the bank.

  • External ATMs

These are a type of ATM that is not inside the bank and is located in various locations outside the bank premises.

  • White Label ATM (WLAs)

White Label ATM Operators” (WLAO) are non-banking organizations that establish, control, and operate ATMs. The full WLA form is “White Label ATM”.

WLAO’s task – It is to acquire all bank ‘customer’ transactions through technical communication with existing ATM Network Operators or Card Payment Network Operators.

function -It is to provide financial products to Indian bank customers, depending on the cards issued to commercial banks.

  • Brown label ATM (BLAs)

ATM Brown Label full form Brown Label Automated Teller Machine form. This type of ATM is not a bank account; instead, it is leased to the buyer to provide the service.

Types of ATM Operations

There are various things you can do with an ATM. These are-

Withdraw Money

ATMs help customers withdraw cash whenever the service is available around the clock. You have to visit the nearest ATM and withdraw cash from it. Each debit card has a different maximum withdrawal amount per day.

Check Available Balance
People can check their bank balances with ATMs. The ATM screen will show the amount available on your account and all you need is a debit card and PIN.

Available print balance
The ATM or Automated Teller Machine also provides you with a printed balance receipt available from your bank account. You can check the balance and get a receipt and the ATM will also provide a receipt for the balance available when you withdraw cash from it.

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