ATM Full Form
Full Form of ATM : Full Form of ATM is Automated Teller Machine
What is ATM?
a). The full form of ATM is Automated teller Machine.
b). ATM is an electro-mechanical machine which consists of automated banking platforms which allows clients to perform easy transactions without the assistance of a branch representative or teller.
c). Those people who has a debit card or credit should be able to withdraw cash at most ATMs.
ATM’s are recognized in different parts of the world as ABM (Automated Bank Machines), or Cash Machines.
Brief History of ATM:
No:1. The first ATM turned up at a Barclays Bank branch in London in 1967, though there are records of a cash dispenser in Japan in the mid-1960s.
No:2. The interbank transaction that allowed a customer to use one bank’s card at another bank’s ATM in the 1970s.
No:3. ATMs had spread across the globe in just a few years, establishing a foothold in every major country.
No:4. ATM’s can now be found in small island nations such as Kiribati. Currently, more than 3.5 million ATMs are in operation worldwide.
Different Types of ATM:
There are mainly two types of ATMs which are:
No:1. Basic units permit only cash withdrawal by clients and provide updated account balance.
No:2. The more complicated machines in which you can also deposit cash, facilitate credit line payments and transfers, and access account details.
Basic Parts of ATM are:
ATM contains input and output tools, allowing people to deposit or withdraw money comfortably. The essential output and input devices of an ATM are given below:
Input device are:
No:1. Card reader – Card reader recognizes the card data stored on the ATM card in the magnetic stripe, which is located on the back of the card. Card reader collect account details and sent to the server
No:2. Keypad – It helps the user with the requested data from the machine such as personal ID number, cash amount, receipt needed or no needed and other information. The PIN is sent to the server in the encrypted form.
Output Devices are:
No:1. Speaker – It is available in the ATM to generate the audio input when any button on machine is pressed.
No:2. Display Screen – It displays details on the screen concerning the transaction. Display Screen indicates the steps of cash withdrawal, one by one. The screen may be CRT or LCD.
No:3. Receipt Printer – A receipt shows you information about the transactions printed on it. It informs you of the time and date of the transaction, balance and withdrawal amount, etc.
No:4. Cash Dispenser – Cash dispenser is the ATM ‘s essential output tool as it hands out the cash. It is the highly accurate sensors provided in the ATM which allows the cash dispenser to administer the appropriate cash amount as the consumer needs.
What is the Working Principle of ATM?
No:1. You need to insert plastic ATM cards inside the ATMs to start ATM operating.
No:2. You have to drop your cards on some machines and some machines require card swapping.
No:3. These ATM cards contain your account details and other security information on the magnetic stripe.
No:4. When you drop or swap your card, the computer receives details about your account and requests for your PIN No.
No:5. Once the authentication is valid, machines will permit cash transactions.
Functions OF ATM’s are:
No:1. Deposit of cash
No:2. Withdrawal of cash
No:3. Transfer of cash
No:4. Accounts details
No:5. Mini statement
No:6. Regular payment of the bill
No:7. Account balance details
No:8. Recharge of prepaid mobile
No:9. Change the pin code
Advantages of ATM are:
No:1. ATM is easy to use.
No:2. ATM service is available for 24 ✕ 7.
No:3. ATM reduces the work pressure on bank staff.
No:4. For travellers , these are more useful.
No:5. It gives service without any error.
Must Read : IAS Full Form