top of page

ATM - All you want to know.

ATM - Automated Teller Machine, it is an electronic device that enables customers of banks and financial institutions to perform a variety of financial transactions like cash withdrawals, deposit, funds transfers, account information, changing ATM PIN or linking Aadhaar to the bank account any time and without the need for interaction with bank staff.

Banks provide ATM cards without any charge at the time of opening of the bank account. However, banks charge for using the ATMs. There is no cost for the initial few transactions but after a cap level cost is charged in every additional transaction. There is also a yearly renewal fee on such cards, some banks waive these charges depending upon the account balance maintained by the customer.

Automated teller machines (ATM) have been changing over time and the machine’s technology is becoming more sophisticated to provide the best experience to the user and make the transactions safer and secure. Some banks like State Bank of India need, One Time Password to withdraw above a certain amount.

Facilities at ATM

Following are the important services, but not exclusive, provided by ATMs

  1. Unlike in the past, ATM Machines are not merely providing the facility of dispensing cash, but today they provide facilities of depositing the cash, fund transfer, payments of bills and generating PIN and mini statements. These are just a few services, and the banks provide many other sophisticated services.

  2. The modern ATM Machines are designed so that it becomes easier to use for everyone, including illiterate individuals and specially-abled people. Technology like biometric identification scanners makes it convenient to use for almost everyone.

  3. India is a country with infinite culture and language. The use of one language in ATMs becomes a roadblock for many users. Multilingual or use of many languages in the ATMs acts as an antidote to this problem. Modern ATMs are equipped with multiple languages and the user can choose the language of his choice, which makes it easier for him to use the machine.

Origin of ATM

ATMs arose after out-of-hours cash distribution developed from bankers' needs in Japan, Sweden, the United Kingdom, and the United States. Japan invented the Computer Loan Machine which supplied cash. And after a few years, Britain deployed the world’s first cash dispensing machine in London in 1967. The machine was put in use by Barclays Bank in Enfield Town, North London. The machine was invented by John Shepherd-Barron and the firm De La Rue.

ATMs were introduced to the Indians in the early 1990s aided by foreign banks. As most of the banks were suffering from a serious handicap at that time due to lack of a strong branch network, ATMs appeared to be the best antidote for the problem. Since then, innovations in ATM technology have come a long way and customer receptiveness has also increased by leaps and bounds.

TYPES OF ATM ( Automated Teller Machine )

White Label ATMs (WLAs): ATMs set up, owned and operated by non-banks (i.e NBFCs) are WLAs. Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by RBI.

Green Label ATMs – ATMs for agricultural transactions.

Orange label ATMs – ATMs used for share transactions.

Pink Label ATMs – ATMs that are meant only for women (ease their banking).

Yellow Label ATMs – ATMs meant for E-commerce facility.

Brown Label ATMs – ATMs that are outsourced by a bank to a third party (based on the concept of sharing the cost).

Biometric ATMs – These are ATMs that use security features like fingerprint scanner and eye scanner of the customer to access the bank details.

Onsite ATMs – ATMs that are located inside the bank’s premises.

Offsite ATMs- ATMs that are located in various places except inside the bank’s premises.


In the times of COVID, the MasterCard has now partnered with AGS Transact Technologies to provide contactless cash withdrawal service to the people. To withdraw cash, the user needs to scan the Quick Response Code on the ATM using the mobile application of your bank. Finally, enter the amount to be withdrawn and PIN of your ATM Card. ATM will then process the money.

1 view0 comments

Recent Posts

See All
bottom of page