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Automated Teller Machine (ATM)

Reviewed by Vineeth | Updated on Jan 05, 2021

Catalogue

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.

What is an Automated Teller Machine (ATM)?

ATMs enable individuals to make banking transactions without the help of an actual teller. Also, customers can avail banking services without having to visit a bank branch. Most ATM transactions can be availed with the use of a debit or credit card. There are some transactions that need no debit or credit card.

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.

Tips and Tricks to Gain Maximum Benefits

As mentioned earlier, ATMs are existing to simplify the financial lives of banking customers. They save customer's time by allowing them to make banking transactions on the go. If your net banking service is not working for some reason, you have to transfer funds to someone far away, and you don't have enough time to visit a bank branch for the same, then all you need to do is visit the nearest ATM, insert your debit or credit card, and follow the instructions as displayed by the machine to transfer funds.

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