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ATM Full Form

Each one of us who has a bank account will have an ATM card and will frequently be drawing cash from the ATM. You are familiar with the word ATM, but do you know what ATM Full Form is? Learn about the ATM Full Form and the benefits of ATM by reading this article.

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ATM Full Form

The introduction of ATMs has been very convenient for individuals as they can access cash 24x7. An ATM enables a withdrawal of cash at any time without having to go to the Bank where the account is held and wait in long queues. An ATM is electronic equipment that enables cash withdrawal through debit cards or credit cards issued by the Bank to its customers.

Individuals use the ATM/Credit Card for withdrawing cash day in and day out. But do they know what ATM Full Form is? ATM Full form is Automated Teller Machine. This does the job of a teller in the BankBank. The strip in the ATM card will have the bank account details of the cardholder. When the card is inserted into the machine, it will read the bank account details and enable withdrawal of cash, provide a mini statement and also give details of the existing balance in the account.

What are the transactions enabled at the ATM?

The various transactions you can do at the ATMs are mentioned below: 
Cash withdrawal 
You can withdraw cash at ATM Full Form, i.e., Automated Teller Machines using the debit card or credit card issued by the Bank all through the day. ATM eliminates the need to visit a bank branch to withdraw cash. Earlier access to cash was for limited hours, i.e., the business hours of the Bank. Now you can withdraw cash from ATMs located at different locations.

Balance Enquiry 
You can check the balance in your account by opting for a balance enquiry. The balance will be displayed on the screen once you enter your card, enter the PIN and opt for a balance enquiry. You will also get a printout of the existing balance if you opt for a receipt.

Mini-statement 
You can also get a printout of the mini-statement for your account that contains the last 10 transactions in your account.

Generate/Change PIN 
Earlier, a debit/credit would be issued along with a PIN which you could alter later. But now, you will have to generate a PIN yourself while using the debit/credit card for the first time. This you can do through an ATM by choosing the Green PIN option.

Changing the PIN at frequent intervals is required to avert misuse of your debit/credit card. Even this facility is available at the ATMs. You can change the PIN by choosing the Change PIN option at the ATM.

The above transactions are enabled in a Basic ATM. But there are sophisticated ATMs that enable the following transactions other than the ones mentioned above.

Cash Deposit 
You can deposit cash at some of the sophisticated ATM Machines.

Transfer of funds 
You can transfer funds from your account to any other account in any bank.

Other Transactions 
Some of the other transactions that can be done through ATM are payment of bills, recharging the mobile phone, payment of insurance premium, etc.

What are the different types of ATMs?

There are majorly two types of ATM 
White Label ATM 
Brown Label ATM

White Label ATM 
The ATM Full Form, i.e., Automated Teller Machines that are owned, installed and operated by non-bank entities, i.e., NBFCs are White Label ATMs or WLAs. NBFCs with a minimum net worth of Rs. 100 Crores alone will be permitted to set up WLAs.

The authorization to install the first WLA under the brand name IndiCash was given to Tata Communication Payment Solutions Limited(TCPSL) by RBI.

White Label ATMs are like any other normal ATMs. You can do all the transactions like cash withdrawal, balance enquiry, print mini statement, change/generate PIN etc. but will not be able to deposit cash at these ATMs. The WLA concept was initiated with an objective to increase the geographical spread of the ATMs.

Brown Label ATM (BLAs) 
The concept of sharing the cost is what prompted a Brown Label ATM. Here the hardware for the ATM will be by the service provider, and cash management and network connection will be of the sponsor bank. The ATM will bear the logo of the sponsor bank.

Since the branding of a bank is available for Brown Label ATMs, all the transactions, including cash deposits, are enabled at these ATMs.

Other Types of ATM 
The other types of ATMs are:

  • Yellow Label ATM: provides e-commerce services
  • Orange Label ATM: to conduct stock transactions
  • Pink Label ATM; Only women can access this ATM
  • Green Label: For Agri based transactions only.

What are the Components of an ATM?

The components of the ATM are categorized into  
Input Device 
Output Device.

Input Device 
The following components are a part of the Input Device.

Key Pad: Keypad allows the cardholder to place the request like cash withdrawal, balance enquiry, etc. and also to key in the PIN, the amount required, and to say ‘yes’ or ‘no’ for commands like ‘Do you need receipt’.

Card Reader: Reads the bank account information in the magnetic strip/chip on the card. Once the card is inserted in the slot provided, the card reader collects the bank account information and conveys it to the server. The cash is dispensed based on the information received from the card reader and the details provided by the user.

Output Device 
The following component forms a part of the Output Device.

Speaker: Generates an audio output when the cardholder taps a button.

Display Screen: Displays the details of a transaction on the screen. For instance, if a balance enquiry request is initiated, then on completion of the process, the balance is displayed on the screen. It displays the amount when entered, mini-statement when a request for mini-statement is given, etc.

Cash Dispenser: It is the essential component of an ATM. A very efficient and accurate sensor permits the dispenser to hand out the exact cash that is demanded by the cardholder.

Receipt Printer: This gives a printout of the transaction with information about the time, date and amount of the transaction. It also gives the balance in the account after a transaction.

Conclusion

Each one of us with a bank account either has a debit card or a credit card, or both. We have even regularly visited the ATM to draw cash or to perform any of the transactions mentioned above, even without really being aware of the ATM Full Form. This article has certainly given you a lot of information besides bringing awareness about the ATM Full Form.

If you have accessed the ATM only for cash withdrawal all these days, you can try to do other transactions like mobile recharge, transfer of funds, paying bills etc., which you will need to do on a regular basis.

ATM Full Form FAQs

What is the difference between offsite and onsite ATMs?

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Onsite ATMs are ATMs located in the premises of the BankBank. Offsite ATMs are ATMs at locations other than the bank premises.

What are the transactions that are enabled at ATMs?

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The following transactions are enabled at the ATMs

  • Cash Withdrawal
  • Cash Deposit
  • Transfer of funds
  • Payment of bills
  • Payment of Insurance Premiums
  • Balance Enquiry
  • Printing of Mini Statement
  • Mobile Recharge
  • Generate/Change PIN

What are the benefits of an ATM?

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The following are the benefits of an ATM.

  • Access to cash 24x7
  • Reduces footfalls in the branch
  • Very handy when you are travelling
  • Accuracy in service.

What is Magnetic Strip/Chip?

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The debit cards issued earlier used to have a magnetic strip that would have all the information about the bank account of the cardholder. The ATM Card Reader would collect the information from the magnetic strip.

At present, Cards with Chip are issued as an enhanced feature, and the Chip will contain the details of the bank account of the cardholder.

How do you withdraw cash from the ATM?

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To withdraw cash from the ATM, you should first insert the credit/debit card in the slot provided. Enter the PIN and choose the cash withdrawal option. Enter the amount and confirm. The amount will be counted and dispensed immediately through the cash dispenser.