What is ATM (Automated Teller Machine)
ATM stands for Automated teller machine and is a computerized system that enables the customer to do financial transactions easily. It is an electronic banking outlet that enables customers to perform financial transaction without the need of their bank branch representative and teller. ATMs are a convenient and safe means of managing your fund and doing financial transactions.
Advantages of ATM
Provide Convenience to Customers
Customers are able to do financial transactions conveniently with the use of ATMs. They can avail various banking services and can do payments seating at their home comfort. Various payments for online shopping, at restaurants and various other places payment can be made using ATM. Nowadays ATM are installed at all important places like railway station, airports, hospitals etc. which facilitate the people in withdrawing their money whenever they want
Offer 24×7 Service
ATM provides 24 hours a day, 7 days a week and 365 days a year to all its customers. Unlike bank branches, it does not have any time schedule for its operations. Customers can access their bank accounts and withdraw their money at any time of day or night as per their convenience.
Reduce Banks Workload
ATMs have an efficient role in reducing the workload of the banking industry. It has relieved customers as they can avail various banking services by using ATM without visiting the bank branches. Customers are not required to stand in long queues and fill up various forms for availing basic withdrawal and deposit facilities. It helps in reducing the work pressure on bank staff and provides flexibility to its operations.
Access to Bank Account from Anywhere
Account can be accessed by customer using ATM from any part of the country or even worldwide. ATM machines are installed in different parts of the country at all convenient places. Customers don’t need to carry cash while travelling and they can easily withdraw money any place they are travelling.
Minimizes Transactions Cost
ATM has reduced the manpower need as all transactions are processed and monitored using automated computerized systems. There is less human intervention in work operations which reduce overall cost.
Limitation on Cash Withdrawal
Bank imposes restrictions on withdrawal limit of their customers using ATM. There are limitations on both no. of free transactions and the amount of money that can be withdrawn per transactions. Banks set withdrawal amount limit for their customers. Most of the banks do not allow withdrawal of more than 25,000 at a time.
