BANKING AWARENESS: ATM

Dear Readers,
Today, we are presenting to you the brief about Automated Teller Machine. Hope you like the post!!!

AUTOMATED TELLER MACHINE - ATM

An electronic banking outlet, which allows customers to complete basic transactions, withdrawal of money,
depositing money and checking of ones own balances etc. without the aid of a branch representative or teller.

Electronic banking i.e., computerization of banking operations in India has picked up during the second half of
1990's. This has helped to introduce ATMs.

There are two primary types of automated teller machines, or ATMs. The basic units allow the customer to only
withdraw cash and receive a report of the account's balance. The more complex machines will accept deposits,
facilitate credit card payments and report account information. To access the advanced features of the complex units,
you will usually need to be a member of the bank that operates the machine.

ATM does most of the functions of cashier in the bank. ATM is operated by plastic card issued by the bank which is
called as ATM Card, with its special features. This plastic ATM Card is replacing cheque, personal attendance of the
customer, banking hours and bank holidays restriction and paper based verification.

ATMs are scattered throughout cities, allowing customers easier access to their accounts. Anyone with a debit or
credit card will be able to access most ATMs. Using a machine operated by your bank is usually free, but accessing
funds through a unit owned by a competing bank will usually incur a small fee. The Indian Railway gave a mandate
to 10 leading banks to host ATMs at Railway Stations.

Usage in India:
According to a 2006 survey by Banknet India, 95% people now prefer this modern channel to traditional mode of
banking. Almost 60% people use an ATM at least once a week. Increased ATM usage is also helped by the fact that
customers have now the flexibility of using ATMs of other banks, as most of the banks are part of major interbank
networks like National Financial Switch (NFS), Mitr, BANCS, Cashtree and Cashnet.

Number of ATMs installed in the country grew by almost 20%, from 17,642 last year, to more than 21,000 by
March 2006. Wide acceptance of ATMs by consumers, introduction of biometric ATMs, and various value-added
ATM services will maintain growth in the industry.

Advantages of ATM:
1. Round the Clock Services: ATM provides banking services to its customers round the clock, 24 hours a day, 7
days a week and 365 days a year.

2. Access to bank from any part of the world: Essential banking services like deposits, withdrawals transfer of
funds, etc can be accessed by customers from any part of the world.

3. Expansion of Services to any corner of the world: Of the Banks can expand their services to any corner of the
world by providing electronic access to its customers.

4. Reduction in cost of operation: This reduces human intervention and thereby reduces the cost of operations and
increases profitability of banks.

5. For shopping Purpose: Now days almost every shopping mall, restaurant and other organizations are accepting
credit card payments.

Disadvantages of ATM:
1. Cannot be provided in rural areas: In India, where banks have large number of rural and non-computerized
branches, ATM services cannot be provided efficiently.

2. Presence various constraints: Even if banks make some efforts to introduce ATM services country side, various
constraints like illiteracy, security concern, etc., may not permit that.

3. Limitation of cash withdrawals: Again there is a limitation of cash withdrawals from ATM. For example, many
banks do not permit withdrawal of more than 25,000 at a time.

4. Cash deposit facility is not safe: Similarly cash deposit facility is restricted and not safe as dropping of envelope
with can in ATM is not advisable.

5. Possibility of misusing ATM card: ATM card, if misplaced, lost or stolen, may be misused. There are number of
such reported incidences now days.

6. Loss of personnel touch with the Banks: Last but not the least, customers lose personal touch with their
bankers.

Read more: http://www.bankersadda.com/2014/03/banking-awareness-atm.html#ixzz36roZcE1D