The ATM full form is Automated Teller Machine. ATM was introduced in 1969 by Chemical Bank in New York (USA). These ATM machines are used to withdraw cash from the person's bank accounts. ATM is known for the electro-mechanical machine it used to perform Moneywise transactions from a bank account.Just as the cashier at a bank branch, officially known as a teller, calculates the cash and hands it over to the customer, the machine does it for you. Hence, it is called "automatic teller machine". It allows the card holder to withdraw money from his personal bank account without visiting the bank. This makes the banking process very easy and smooth as these machine 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 the other with more advanced functions where you can deposit cash as well. Now a days, ATM has a lot of functionalities along with its basic usage of cash dispensing. Some of them are cash and check deposit, fund transfer, cash withdrawal and balance enquiry, new pin generation and pin change, mini statement, bill payment and mobile recharge etc.
Types of ATM
There are two primary types of ATMs. Basic units that allow users to withdraw cash and check updated account balances. While ATMs with advanced features accept deposits, facilitate fund transfers and allow customers to check account information.
Primary Model: Primary models are only capable of withdrawing cash and providing updated account balance details. These basic units are very comman and they found everywhere and they are also programmed with fewer applications. ATMs found offsite are often designed for cash withdrawal only.
Complex models: More complex machines support a variety of bank applications as opposed to withdrawing cash, depositing cash, transferring funds, paying bills and accessing account details. They are expensive, require high maintenance and are therefore only present in certain locations. Complex ATM models are not for the general public and are operated only by bank employees. Hence, most ATMs are placed inside or outside the banks which are usually multi-functional.
Parts Of ATM
ATMs are secure, reliable and easy to operate. Just like the computers, ATMs also have input and output devices it provide proper functioning and dispensing of the cash. The output and input tools of ATM are as follows:
Card Reader - The card reader input device recognizes the account data stored in the magnetic strips of the ATM card. When someone insert there ATM card, the card reader immediately collects all the bank details and it direct send the details to the server in the card slot. When all your details are validated, the cash dispenser allows the cash to be dispensed based on the account information.
Keypad - The keypad assists the user with the mandatory information required from the machine like account type, pin code, personal ID number, cash amount, whether receipt is required or not and other information.
Display Screen- The display screen are mainly use for presenting all the information on the screen involved in the transaction process. It instructs the steps for disbursing or receiving details of cash withdrawal. The display screen can be of CRT or LCD.
Receipt Printer- Almost all ATM transactions support the Printed Receipt facility. Hence, a printer is required to print the account details (balance, withdrawal amount, transaction date) on the receipt paper.
Cash Dispenser- Cash dispenser device is an important device responsible for dispensing ATM cash. ATMs are fitted The foundation of the Academy was laid on 6 October 1949 by the former Prime Minister of India, Jawaharlal Nehru. Sometime on 7 December 1954, the NDA was formed and this was with highly reliable sensors to control the flow of cash properly through the cash dispenser.
How ATM Works?
To start the process, the account holder needs to insert his/her debit card inside the ATM card slot. Although different ATMs have different mechanisms, as in some ATMs, you have to leave your card in the card slot while in others you only need to swipe it. The ATM card has a magnetic stripe which contains all the necessary details related to your bank account. Whenever you insert the card into the card reader, the ATM retrieves all the security information related to your account and validates the account holder by asking the user to enter the PIN code. Once the authentication is valid, the ATM will approve the transaction.