ATM Full Form: What is ATM?: Do you know what is the full form of ATM, and what is the meaning of ATM, and do you know how to use ATM, if If your answer is no, then there is no need to go anywhere because today’s post we are going to give you complete information about ATM with complete history.
ATM Full Form
The full form of ATM is “Automated Teller Machine“, In Shorts, ATM means automatic transaction machine. Let us now get some more information about it.
ATM is an electro-mechanical machine, which is used for financial transactions from a bank account. If you say in a more simple language, ATM is an automatic transaction machine, ATM is such an automated computerized machine with the help of which bank customers can do banking operations without the help of any teller.
ATM is a kind of electronics machine, ATM was invented in 1960 by John Shepherd Burron. The biggest advantage of an ATM is that you can withdraw money without going to the bank with its help. ATMs are also of two types, first type ATM you can use only for withdrawing money and taking account balance information, and using second type ATM you can deposit money, make credit card payments and accounts. You can also get information. ATM is used only by bank customers for money transactions. Users can access their accounts with a special type of plastic card.
There are mainly two types of cards used to withdraw money from ATMs, debit cards and credit cards, but a debit card is used more than a credit card.
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If you have an account in any bank, then at some point in time you must have had to deal with ATM and you must have withdrawn cash from an ATM machine using an ATM card. Instead of withdrawing cash i.e. cash from banks, today people consider it easier to withdraw from ATMs, but perhaps very few people know what is the full form of ATMs and who invented it.
When and where was the world’s first ATM installed and what is its complete history. So let us tell you today what is the full form of ATM and from where its entire journey started in the world.
The full form of ATM is Automatic Teller Machine that is the machine that is used for currency withdrawal, It is the device used to withdraw money is called ATM. ATM is called automatic because it works automatically, teller i.e. it automatically counts money and machine means machine.
Different Countries Different Name
But it is not that ATM is known by this name everywhere, in many countries such as in Canada, ATM is called ABM which means automatic banking machine and here the word banking means “transaction of money”. ATMs have different names with different locations and countries, for example, in many countries, it is called Cash Point and in many countries, it is also called Hole in the Wall.
A hole in the wall means to have a hole in the wall because you must have seen that by making a small hole in the wall somewhere, the screen of the ATM machine comes out from where money can be withdrawn. What happens if an ATM is installed by making a hole in the wall that the machine gets some safety.
Account of ATM: All over the world where ATMs are installed or in all the countries where ATMs have been established, an organization has been jointly formed for them, whose name is ATMIA, whose full form is ATM Industry Association. This association is headquartered in the United States of America and was established in the year 1997.
The main reason for setting up this institution is that wherever there is an ATM in the whole world if there is any problem or there is a technical fault, then after reviewing and seeing it, it develops this organization all over the world. Keeps the account of the ATM installed in According to ATMIA, at present, there are more than 35 lakh ATMs in the whole world.
You might find this number a little less but there are a total of 195 countries approx in the world and 35 lakh ATMs in 195 countries becomes a very big quantity and their number will increase in the coming time. These ATMs are being developed with the passage of time so that separate machines are being installed to print the transactions on the kiosk and passbook to withdraw money as well as deposit money, so in the coming time, banking The system will be paperless to a large extent.
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Working of ATM
ATM means Automated Teller Machine. It is an electronic machine, which is used for financial transactions. ATM allows customers to withdraw cash from their respective bank accounts without having to visit their bank branch.
It is a convenient and hassle-free platform where customers can do all their transactions like cash withdrawal, cash deposit, amount transfer without the help of any bank representative. On transactions, a nominal fee is charged by the operator of the ATM who does not maintain our account. This charge can be avoided if we use the ATM of the respective bank in which our account is present. ATM is a very widely used option across the world and in some parts, it is also called an automatic bank machine.
ATM is an electro-mechanical machine having automated banking platforms that allow customers to conduct smooth transactions without the assistance of a branch representative or teller.
A debit card or credit cardholder should be able to withdraw cash at most ATMs. ATMs are advantageous, allowing customers to perform fast self-service transactions such as cash withdrawals, deposits, bill payments, and account-to-account transfers. The fee for cash withdrawal is usually paid by the bank, where the account is held, by the ATM operator, or both. Some of these charges can be avoided by using an ATM which is operated directly by the bank holding the account. ATMs are recognized in different parts of the world as ABM (Automatic Bank Machines), or Cash Machines.
ATM is an electronic telecommunication device that is used to perform financial transactions such as cash withdrawal, deposit, transfer funds, and other bank-related transactions at any time. This makes the banking process very easy as these machines are automated and there is no need for direct interaction with the bank employees.
Mostly we can find Automated Teller Machines from ATMs, in which only cash withdrawal work is done. Some ATMs allow us to do cash deposits as well as advanced functions like cash deposits, check deposits.
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Process of ATM
Bank officials provide the ATM card and PIN code to the customer to access the card. When this ATM card is inserted into any ATM machine, the machine asks to enter a PIN. The customer has to enter the PIN which should match the PIN stored in the chip of the card. Once the correct PIN is entered, customers gain access to their bank account and can thus proceed with their transactions.
History of ATM
In today’s digital world, ATM machines must have been seen and used by all. But do you know when and how the ATM machine was discovered, if not, then definitely read this article till the end?
ATM was first invented in India. John Shepherd-Barron of Scotland, who made ATM, was born on 23 June 1925 in Shillong, Meghalaya. At that time his Scottish father was the Chief Engineer of the Chittagong Port Commissioners in North Bengal at that time. The idea of making an ATM came while taking a bath. He thought that if there is a money dispenser like a chocolate dispenser so that the case can be removed for 24 hours, then how much convenience will be there. After this, he built the ATM machine.
The first ATM machine was installed on 27 June 1967 at Barclays Bank in London. There is about one machine in the whole world, there are 30 lakh ATM machines in the whole world, out of which 2.5 lakh ATM machines are in India.
The first ATM machine in India was installed in the year 1987. The first ATM machine in India was installed by the Banking Corporation of Hong Kong and Shanghai in Mumbai. Baron, who made the ATM machine, never got the pattern of his machine done because he wanted to keep his technology secret, if he got the pattern, he would have to share his code system with the pattern agencies, so he decided not to get the pattern done.
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ATM Pin History
The special thing was that the Baron was in favor of keeping the ATM PIN of 6 Digit but his wife told him that 6 Digit is more and people will not be able to remember it, so later he made him a 4 Digit ATM Pin and even today 4 Digit’s ATM PIN works. You can also use ATM without a bank account but this is not possible in India. In fact, 84% of the population in Romania, the country of Europe, does not have a bank account, but they still use ATMs. The first floating ATM machine was installed in Kochi, Kerala. This machine was installed by the State Bank of India in Dhakkar, its owner was the Kerala Shipping and Inland Navigation Corporation company.
The first device that was operational was known as the ‘Computer Loan Machine’. This equipment was supplied by the Japanese in the year 1966. After inserting the credit card into the machine, the machine is used to withdraw cash in the form of a loan. The cash machine was first used in 1967 at a Barclays Bank branch in North London. This machine was inaugurated by actor Reg Varney. Later in the year 1970, after discussions with other banks, the card of one bank could be used for transactions at another bank’s ATM. Now ATM is a facility used all over the world which makes people’s life very easy. There are more than 3 million ATMs, which are used across the world.
ATM Machine Parts
- ATMs around the world are designed differently but they have some basic parts.
- There is a display screen that looks like the screen of a computer monitor.
- A speaker through which instructions on access to the machine can be heard.
- A card reader is present in which the card is to be inserted shortly after which the display shows certain options like language, transaction details, and customer ID or PIN, after which the individual can access his account.
- A keypad is present in which the customer has to type the information the machine asks for the transaction.
- A cash dispenser is present through which cash can be collected. The cash is kept safely in the machine by the bank officials for the customer’s transactions.
- There exists a receipt printer that prints a sheet that displays the transaction details.
What is Teller?
ATM is used to conduct financial transactions from a bank account. These machines are used to withdraw money from individual bank accounts. Just like the cashier at a bank branch, officially known as the teller, counts the cash and hands it over to the customer, the machine does it for you. Hence, it is called an “Automatic Teller Machine”.
It allows the cardholder to withdraw money from his/her individual bank account without going to the bank. This makes the banking process very easy as these automated teller machines are automated and there is no need for a human cashier for the transaction. ATM machines can be of two types; One with basic functions where you can withdraw cash and another with more advanced functions where you can deposit cash.
Nowadays, ATMs have a lot of functionalities along with the basic usage of cash dispensing. Some of them are cash and check deposits, fund transfers, cash withdrawal and balance inquiries, new PIN generation, and PIN change, mini statement, bill payment, and mobile recharge, etc. The first ATM was introduced by Chemical Bank in New York (USA). 1969.
Complete information of ATM
If you have an account in any bank, then at some point in time you must have had to deal with ATM and you must have withdrawn cash from an ATM machine using an ATM card. Instead of withdrawing cash i.e. cash from banks, today people consider it easier to withdraw from ATMs.
ATM has multiple information
An automated teller machine (ATM) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, or obtaining account information, at any time and directly with a bank. without the need for contact. Staff.
ATMs are known by many names, including automated teller machines in the United States American, British, Australian, Malaysian, South African, Singaporean, Indian, Maldivian, Hiberno, Philippines and Sri Lankan etc.
Often ATM, Automated Banking Machine (ABM, Canadian English), Cash Point (British English), Cashline, Minibank, Cash Machine, Time Machine, Cash Dispenser, Bancomet or Bancomet. Many ATMs have a symbol on them, indicating the name of the bank or organization that owns the ATM, and possibly the networks it can connect to. In Canada, ABMs that are not operated by a financial institution are known as “white-label ABMs”.
According To ATMIA
According to the ATM Industry Association (ATMIA), there are now around 3.5 million ATMs installed around the world. However, the use of ATMs is gradually decreasing – especially in the retail trend.
In most modern ATMs, customers are identified by inserting a plastic ATM card (or some other acceptable payment card) into the ATM, with the customer entering a personal identification number (PIN) that matches the PIN stored in the chip.
The card must be entered (if the card is very well equipped) or in the database of the issuing financial institution. Using ATMs, customers can access their bank deposit or credit accounts to make a variety of financial transactions such as cash withdrawals, check balances, or credit mobile phones. ATMs can be used to withdraw cash in a foreign country. If the currency withdrawn from the ATM is different from that shown in the bank account, the funds will be exchanged at the exchange rate of the financial institution.
Where are ATMs used?
ATM is an electromechanical machine and is used to do financial transactions and these machines are used to withdraw money from a personal bank account. As we have seen the cashier at the bank branch, ATM is also known as a cashier and hand it over to the customer. So this is the reason why it is also known as Automatic Teller Machine.
The main function of this ATM machine is that the cardholder can withdraw cash from his bank account without visiting the main bank branch. So it makes the banking process very easy as these automated teller machines which are ATMs are automated so there is no need for a human cashier for the transaction and we can say that to withdraw money from our bank account without going to the bank is very beneficial.
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Different types of ATMs
There are mainly two types of ATMs –
- Basic units allow only cash withdrawals by customers and provide updated account balances.
- More complex machines in which you can deposit cash, facilitate credit line payments and transfers, and access account statements.
Basic parts of ATM
The ATM is easy to use. It includes input and output tools so that people can easily deposit or withdraw money. Below are the required output and input devices of ATMs.
The card reader recognizes the card data stored on the ATM card in the magnetic stripe, which is located on the back. The card details are collected by the card reader and sent to the server once the card is inserted at the specified location. Cash dispenser allows withdrawing cash based on account information and orders received from user server.
The keypad helps the user with the personal data from the machine such as personal ID number, cash amount, receipt required, or any other information and other information. In encrypted form, the PIN is sent to the server.
Available in Speaker
ATM to generate audio input at the press of a button.
Displays details about the transaction on the screen. It indicates the steps of cash withdrawal, one by one in sequence. The screen can be CRT or LCD.
A receipt shows you information about transactions printed on it. It informs you about the time and date of the transaction, balance, and withdrawal amount, etc.
A cash dispenser is an essential output tool of an ATM as it hands out cash. The highly accurate sensors provided in the ATM allow the cash dispenser to manage the appropriate cash amount, as required by the consumer.
Working principle of ATM
To start operating the ATM, you have to insert the plastic ATM card inside the ATM. You will need to discard your card on some machines and some machines will require card swapping. These ATM cards carry your account details and other security information on a magnetic stripe. When you drop or swap your card, the computer receives details about your account and requests your PIN number. Once the authentication is validated, the machines will allow the transaction.
Functions of ATM
- cash deposit
- cash withdrawal
- transfer of cash
- statement of accounts
- mini statement
- regular bill payment
- account balance statement
- prepaid mobile recharge
- change pin code
How does ATM work?
To start the functioning of the ATM, you have to insert the plastic ATM card inside the ATM machines. Some machines require you to drop your cards, some machines allow card swapping. As I have already mentioned, these ATM cards contain your account details and other security information in the form of a magnetic stripe. When you drop/swap your card, the machine gets your account information and asks for your PIN number. After successful authentication, the machine allows the transaction.
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Main Functions of ATM
- By using ATM, you can do the shopping and also deposit your fees.
- You can register your mobile number using ATM and get a message alert.
- You can get a PIN code and a new PIN using ATM.
- By using ATM you can know your bank account details anytime and anywhere.
- One big advantage we get from using ATMs is that we do not have to carry extra money anywhere, and this keeps our money safe.
- Using ATM, you can withdraw and deposit your money from your bank account anytime and anywhere.
How to apply for an ATM Card / Debit Card?
- If you want, you can apply for ATM Card both online and offline. Whichever method you find easy and simple, you can use that method. Although the online method is not the same for everyone, so I am going to tell you about the offline method in this post –
- First of all, go to any nearest branch of the bank in which your account is in.
- By going there you can ask for the application form for ATM Card or you can also download it online.
- You can fill in the details asked in the form (Name, Date of Birth, Address, Mobile, Email, Account No. etc.) and submit it to the bank by filling it correctly.
- After this, you will have to wait for 15 or more days and after that, your ATM card will be delivered to your home.
Advantages of ATM
- These machines are used to withdraw money from individual bank accounts.
- It allows the cardholder to withdraw money from his/her personal bank account without visiting the bank.
- This makes the banking process very easy as these automated teller machines are automated and there is no need for a human cashier for the transaction.
How ATM works
- To use the ATM, you have to insert the plastic ATM card inside the ATM machines.
- In some machines, you have to drop your cards. Some machines allow card swapping, these ATM cards contain your account details and other security information in the form of a magnetic stripe.
- When you drop/swap your card, the machine gets your account information and will show your PIN no. After successful authentication, the machine will allow financial transactions.
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