Automated Teller Machine News

Automated teller machine is an electronic machine, which provides the facility to the customers to withdraw or deposit money easily from the nearby outlet of the bank by themselves.  One can also deposit check through this machine in the bank. The customers can easily withdraw the money from the ATM through their debit card and credit card using the pin they had set. The introduction of ATM was firstly introduced by Barclays Bank in London in 1967,

The introduction of ATM has brought a revolutionary change in the era of banking industry. ATM facility can be used 24/7.  The Number of ATM machines is increasing day by day. More than 2 million ATM machines Worldwide has been installed. 

ATM machines are of two types.

1. One from which we can withdraw money, take out mini statement and check our bank balance.
2. The other one is little complex to operate as in it we can deposit cheque and cash in it.

For using ATM card, bank charges the minimal amount throughout the year from the    account of the account holder. In other words, we can say it is all time cash machine. 

Features of ATM Machine

1. Printer
2. Screen
3. Keypad
4. Card reader
5. Cash dispenser

Advantages of ATM

1. Availability 24/7- One can take out cash from ATM at any time.
2. Easily accessible -As the banks has installed many ATM machines all over the world                         one need not go to the branch for small transactions.
3. Interconnectivity –One can easily take out the money from another bank by using their ATM outlet of the bank which is nearby.
4. Work load on the bank staff reduces- Due to ATM the work load of bank staff is reduced to great extent.
5. Tracking your financial expenditure– As mini statement can be taken out from the ATM machine, which shows the expenses and credit received, one can track the expenditure through atm.
6. Withdrawal of instant cash– One can withdraw instant cash from atm.
7. Security- No one can withdraw cash from your account as it is secured by the pin generated by the customer.

Disadvantages

1. Limitations on cash withdrawal– The bank has set a limit to withdraw cash from ATM. One can make maximum transactions up to 5 times, if we cross the limit the bank charges its fees.
2. Technical problem– Due to failure in the software of ATM machine, it is very difficult sometimes to take out money from it.
3. High maintenance cost– The bank has to pay high charges for maintenance of ATM machine.

Automated teller machine news

Changes made by the RBI in ATM

1. Increasing cost of transaction by ATM – RBI has increased the cost of transaction done through ATM from 1st January 2022. Earlier if the customer exceeded the limit and did the transaction inspite of that, RBI used to charge   Rs20 in 2020 per transaction, but now raised to Rs21 per transaction. 
2. Gold coins withdrawal – Now not only we can withdraw cash from ATM, but we can also withdraw gold coins from ATM. This ATM was introduced by Gold Sikka recently in Hyderabad, where the customers do not have to visit any jewellery shop and can purchase gold through ATM. The concept of installing this ATM which remits gold to the customers was done with the concept to make gold easily affordable and available to the customers.
3. Modern ATM – Now the banks have introduced new features in their ATM machine.  The customers can easily do mobile top up, pay their electricity bills and do charity donations, recharge TV.

The banks have also notified RBI to increase a greater number of ATM machines.

The use of ATM has increased in recent years in leaps and bound. ATM machine helps the people in making transactions faster. It is user friendly and safe. But these days the major threat to it is, introduction of net banking. In this the customer can do transactions in cash by sitting at home only.  RBI is taking great measures to improve ATM services. Like it is installing a greater number of ATM machines. It is looking after the security of the customers by installing CCTV cameras. It is also providing guards at every ATM machine. As the ATM machine goes cashless, RBI is trying to meet the expectations of the people, so that ATM machines do not run out of cash.  RBI is also adding more features to it like in future they will be able to deal in crypto currency, bitcoins. Shares and other things also.