Introduction
Automated Teller Machines, popularly referred to as ATMs, are one of the most useful advancements in the banking sector. ATMs allow banking customers to avail quick self-serviced transactions, such as cash withdrawal, deposit, and fund transfers.
An automated teller machine also known as an Automated Banking Machine (ABM) is an electronic telecommunication device that enables the customers of a financial institution to perform financial transactions, particularly cash withdrawal, without the need for a human cashier, clerk or bank teller.
The Services Normally Offered At An ATM Are:
- Cash withdrawal
- Cash Deposit
- Account information
- Regular bills payment
The features of the automated teller machine include the following.
- 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.
Types Of ATMs
White Label ATM
White Label ATMs are those ATMs which set up, owned and operated by non-bank entities. To aid financial inclusion and drive ATM penetration in the country the Reserve Bank of India has permitted the launch of White Labelled ATMs (WLAs) i.e private non-bank companies to set up, own and operate its own brand of ATMs in the country. These white label ATMs will not display logo of any particular bank. TATA launched the first white label ATM in India under the brand name of Indicash.
Brown Label ATMs
These ATMs are owned and maintained by service provider whereas a sponsor bank whose brand is used on ATM takes care of cash management and network connectivity.
Onsite ATMs
These are ATM machines that are set up in the premises where there is a bank branch so that both the physical branch and the ATM can be used. This is known as being on site and this can be used for several purposes. Many people can use this to avoid the lines that are present in the branch and hence save on the time required to complete their transactions.
Offsite ATMs
These are the machines that are set up on a standalone basis. This means that the bank has a place where there is only an ATM machine then this becomes an offsite ATM. This is done to ensure that the bank reaches out to more geographical areas and that people are able to use its services even when there is no bank branch in the area.
Leased Line ATM Machines
The leased line machines connect directly to the host processor through a four-wire point to point dedicated telephone line. These types of machines are preferred in place. The operating cost of these machines is very high.
Dial-Up ATM Machines
The dial-up ATMs connect to the host processor through a normal phone line using a modem. These require a normal connection their and their initial installation cost is very less. The operating cost of these machines is low compared with leased line machines.
Cash Dispenser
These machines allow simply balance inquiry, mini statement & cash withdrawals..
Mobile ATM
These machines move in the locations for the users because COVID 19 has led to the rush within the several Mobile ATMs.
Why Automated Teller Machine (ATM) is Important?
The evolution of the banking sector has made financial lives easier for customers. The first-ever automated teller machine was set up at London, United Kingdom, in the year 1967. In just over 50 years, the ATMs are now seen in use in every country.
The existence of ATMs has alleviated the need to visit a bank branch to make simple banking transactions, such as cash deposit and cash withdrawal. Gone are the days when people needed to visit bank branches to complete these basic transactions within the bank operation hours.
Another significant use of ATMs is that they are found almost everywhere. In India, almost every neighbourhood in major cities, such as Delhi, Mumbai, Bengaluru, and Hyderabad has at least one ATM. Also, ATMs allow inter-bank customers to transact. For instance, a customer of ABC bank can make transactions in an ATM set up by XYZ bank.
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