Automated Teller Machine (ATM)

Automated Teller Machine (ATM)

Automated Teller Machines, popularly referred to as ATMs, are one of the most useful advancements in the banking sector which enables users to withdraw cash, deposits and transfer funds.

ATMs are simple data terminals with four output and two input devices. They have to connect to a host processor and communicate through it. The host processor works like an Internet Service Provider (ISP), a portal through which all the various networks of ATMs become accessible to the bank account holder with either a credit card or debit card.

The existence of ATMs have eliminated the need to visit the bank branch within the operation hours to do basic transactions like cash deposits and withdrawals.

They are recognized in different parts of the world as ABM (Automated Bank Machines), or Cash Machines.


Using an Automated teller machine is very easy. The following are the steps to operate an ATM :-

Step 1 : Visit the nearest ATM and insert your ATM card in it.

Step 2 : Choose your language from the options appearing on the display screen.

Step 3 : Select the transaction type from transactions such as deposit, transfer, withdrawal of cash etc.

Step 4 : Select the Type of Account from current, saving and salary accounts.

Step 5 : Enter the withdrawal amount and four-digit ATM PIN.

Step 6 : Collect the Cash.

Step 7 : Take a printed receipt.

Step 8 : If you want to perform another transaction, then select that option.

ADVANTAGES OF ATM (Automated Teller Machine )

  • ATM Machine can be accessed 24*7, 365 days a year.
  • It allows the withdrawal of cash very quickly thereby saving the time.
  • It reduces the work pressure on bank staff.
  • ATM is safe and secure as the use of an ATM is restricted only to the person who knows the PIN.
  • ATMs also provide the facility of paying utility bills and several other bills and payments.
  • Insurers like LIC, HDFC Life and SBI Life have tied up with banks to facilitate premium payment through ATMs. Just keep the policy number handy, Go to ‘Bill Pay’, select insurer, enter policy number and date of birth or mobile number, then enter premium amount and confirm.

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Thus, in a nutshell,  ATM is an electronic device that enables customers of banks and financial institutions to perform a variety of financial transactions, like cash withdrawals, deposits and funds transfers without the need for interaction with bank staff.

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