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The full form of ATM is an Automated Teller Machine. Bank customers use this electronic machine for their different types of account transactions. The user has a type of plastic card, that is popularly known as a debit card. The information of the user is drafted on the card. The card has an identification code. The cardholder needs to insert the card within the Automated Teller Machine through which the account and its transactions can be accessed. In 1960, John Shepherd – Barron invented the automated teller machine. Through the automated teller machine, the users can perform depositing money, withdrawing money, transferring money, information related to the respective account, and changing of ATM PIN.
An ATM is also known as cash deposit money or an automatic banking machine. Without the help of any bank representatives, the account transactions can be completed with the help of this machine. Two types of automated teller machines are available. The first one is the basic which only allows the withdrawal of cash and the details of the account balance. The second type is a complex that deposits money and gives credit card facilities and account balances.
History of ATM
The concept of the ATM started in several countries from Japan, and Sweden to the US. The computer load machine for the computer loan was invented by Japan in 1966. In 1967, the cash dispensing machine was developed in London. This computer load machine was used first by Barclays Bank. As in India, the development of ATMs was very slow. The automated teller machine gave solutions to many problems relating to the branch systems of the banks. With time the ATMs have been developed.
ATM Machines – Types
There are a few different types of automated teller machines which are mentioned below:
- Leased Line machine: This machine connects to the host processor directly. They connect from a four-wire point to a telephone line. The operation cost of these machines is very high and they are preferred in particular places only.
- Dial-up machines: These machines link with the processor through a phone line by using a modem. They require a normal connection and less cost. The operation cost of these machines is less than the leased machines.
- White Label machine: These are operated by non-bank organisations. These are introduced by RBI for the access of ATMs within the country. They don’t show any type of bank logo and were introduced by TATA.
- Brown Label: These machines are owned by the service providers and they take care of the cash and network areas
- Onsite ATM: These machines are made available where a particular branch of a bank is located. By this, both the bank and ATM are used for various purposes.
- Offsite ATM: These machines are made separately, which means only the ATM is present there. This helps to reach the banks in more geographical areas to use its services even when the bank is not available within that region.
- Cash dispenser: This automated teller machine provides withdrawal of cash, details of balance, and mini statements.
- Mobile ATM: These were introduced during covid-19 and are helpful for the users.
- Green label machines: These are mainly used for agriculture purpose transactions.
- Orange label: These are used for transactions of shares.
- Yellow label: This automated teller machine is for online purchases through the e-commerce facility.
- Pink label: This automated teller machine is used by women. Protectors keep a check on these ATMs so that no one other than women can use the services.
Benefits of Automated Teller Machine
There are many benefits of the ATMs that are listed below:
- ATMs are made available in every area so that every person can avail of the services.
- It helps in withdrawing money in a few seconds.
- For getting an ATM card no documented work is required. Every bank gives an ATM card during the process of account opening.
- With the help of an ATM, the balance of the respective account can be known.
- ATMs allow utility payments.
- It provides 24×7 services.
- ATMs are password protected. Users can get access to their accounts if they know their passwords which makes them secure and safe.
- It decreases the workload and pressure on the bank employees.
- The cash-carrying process becomes easier because money can be withdrawn from any available ATM centre.
- New currency notes are provided to the users by the ATMs.
- These machines are beneficial and convenient for the users.
- The machine provides services without any type of error.
Conclusion
We hope through this article, you got to know about ATMs and their benefits. They are very safe and secure machines. They are helpful for bank transactions. Nowadays they are available in every region. ATMs are upgraded with time. Many new functions have been implemented in the machines.
