An automated teller machine (ATM), also known as automatic banking machine (ABM), Cash Machine, or Cashpoint, is a computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. It allows the bank clients for banking services round the clock i.e. 24 hours. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN).
Services Offered by
ATMs:
I. Cash deposit/ cash withdrawal
II. Balance inquiry
III. Fund transfer
IV. Standing instruction
V. Utility bill payment
VI. Making payments for application for
IPOs
Advantages of ATMs:
1. ATM provides 24 hours service: ATMs provide
service round the clock. The customer can withdraw cash up to a certain a limit
during any time of the day or night.
2. ATM gives convenience to bank's customers:
ATMs provide convenience to the customers. Now-a-days, ATMs
are located at
convenient places, such as at the air ports, railway stations, etc. and not
necessarily at the Bank's premises. It is to be noted that ATMs are installed
off-site (away from bank premises) as well as on site (installed within bank's
premises). ATMs provide mobility in banking services for withdrawal.
3. ATM reduces the workload of bank's staff:
ATMs reduce the work pressure on bank's staff and avoids queues in bank
premises.
4. ATM provides service without any error: ATMs
provide service without error. The customer can obtain exact amount. There is
no human error as far as ATMs are concerned.
5. ATM is very beneficial for travelers: ATMs
are of great help to travelers. They need not carry large amount of cash with
them. They can withdraw cash from any city or state, across the country and
even from outside the country with the help of ATM.
6. ATM may give customers new currency notes:
The customer also gets brand new currency notes from ATMs. In other words,
customers do not get soiled notes from ATMs.
7. ATM provides privacy in banking
transactions: Most of all, ATMs provide privacy in banking transactions of the
customer.