You must be using an ATM in your daily activities. We use the ATM for all the work to withdraw money or to whom to send money. But do you know what is the full form of ATM?
This question is often asked in many competitive examinations, due to lack of correct information, many candidates are defeated here and are unable to answer this question. In this post, we will learn about the full form of ATM and information related to ATM. Many of us think that ATM’s full form is Any Time Money but it is not correct. Today we will get information about the full form of ATM.
ATM is known by various names in other parts of the world. In Canada, ATMs are also known as ABM (Automatic Banking Machine). In other countries, the terms Cash Point, Cash Machine, Mini Bank, and “Hole in the wall” are used. So today I thought why don’t you know what is the full form of ATM? The correct answer should be told so that you will never be stressed about this question. Then let’s start.
The full form of ATM is “Automated Teller Machine”.
If we analyze it then we will find,
A – Automated
T – Teller
M – Machine
Other full forms of ATM
Now let us know about some other Full Forms of ATM which are given below.
1. Air traffic management (in aviation terminologies)
2. Asynchronous Transfer Mode (in I.T. Sector) It is a telecommunications concept that is defined by ANSI and ITU.
3. Association of Teachers of Mathematics (This is a non-profit organization and registered charity
Is of UK)
4. Angkatan Tentera Malaysia (Malaysian Armed Forces)
5. Altamira Airport This is an airport located in Altamira, Brazil (Airport Code).
What is ATM?
ATM is an electronic telecommunications device that is used for financial transactions such as cash withdrawals, deposits, fund transfers, and other bank-related transactions at any time. This makes the banking process very easy as these machines are automatic and there is no need to interact directly with the bank employees.
Users access their account through a special type of plastic card, encoded with the user’s information on a magnetic strip above the card. The Strip has an Identification Code which is transmitted by the Modem to the Central Computer of the bank. Users access the card to ATM to access their accounts and process their account transactions.
What are the parts of the ATM?
There are two types of devices in an ATM that help users to use it easily.
1. Input Device
2. Output Device
Card Reader: Card Reader reads the ATM card data (account information) which is stored on the Magnetic Strip on the backside of your ATM Card and sends it to the server for Verification. Allows withdrawal of cash based on account information and orders received from User Service.
Keypad: Keypad allows you to input details like PIN, how much money you want to withdraw, and other features like cancel, clear, enter, etc.
Screen: It is used to display account-related information (account holder name, available balance, etc.) and the tasks you need to perform to complete your transaction.
Speaker: Speakers are available at most ATMs. This is provided to provide audio feedback when you perform your transaction.
Cash dispenser: It is one of the most important output devices of ATMs. It is used to withdraw cash.
Receipt printer: It provides a receipt related to your transaction which includes withdrawal amount, balance amount, date, time, location, etc.
How does ATM work?
To start the functioning of an ATM, you need to insert plastic ATM cards inside the ATMs. In some machines you have to drop your cards, some machines allow to swap cards. As I have already told, these ATM cards contain your account details and other security information in the form of a magnetic strip.
When you drop/swap your card, the machine gets your account information and asks for your PIN. After successful Authentication, the machine allows Transaction.
Let us now know about the types of ATMs.
Online ATM: This type of ATM is connected to the bank’s database 24 hours. You cannot withdraw more than the balance in your account.
Offline ATM: It is not linked to the database of the bank. Even if you do not have the required amount in your account, you will be able to withdraw it, for which the bank may impose some penalty.
On-Site ATM: ATMs inside the bank premises are known as onsite ATMs.
Off-Site ATM: ATMs located at various locations inside the bank premises are known as offsite ATMs.
White Label ATM: ATMs established by Non-Banking Financial Companies are known as White Label ATMs.
Yellow Label ATM: Yellow Label ATMs are provided for E-Commerce reasons.
Brown Label ATM: This type of ATM hardware and leasing ATM is owned by a Service Provider, but Cash Management and Connectivity for Banking Network is provided by a bank.
Orange Label ATM: These ATMs are provided for Share Transaction.
Pink Label ATM: These ATMs are provided for women only.
Green Label ATM: These ATMs are provided for agricultural transactions.
Interesting facts about ATM
Let us now know some interesting facts about ATMs that you might not have heard.
The inventor of ATM: John Shepherd Baron.
ATM Pin Number: John Shepherd Barone thought of having a 6-digit PIN for an ATM, but it was not easy for his wife to remember a 6-digit PIN, so he decided to produce a 4-digit ATP PIN.
World’s first Floating ATM: State Bank of India (Kerala).
First ATM in India: Established in 1987 by HSBC (Hong Kong and Shanghai Banking Corporation).
The world’s first ATM: It was established on 27 June 1967 at Barclays Bank, London.
First-person to use ATM: Renowned comedy actor Reg Varney was the first person to withdraw cash from ATM.
ATM without an account: In Romania, which is a European country, any person can withdraw money from an ATM without a bank account.
Bio-Metric ATM: Biometric ATM is used in Brazil. As the name suggests, users are required to scan their fingers at these ATMs before withdrawing money.
Functions OF ATMs
- Deposit of cash
- Withdrawal of cash
- Transfer of cash
- Accounts details
- Mini statement
- Regular payment of the bill
- Account balance details
- Recharge of prepaid mobile
- Change the pin code
Advantages of ATM
- ATM service is available 24 ✕ 7.
- It reduces the work pressure on bank staff.
- For travelers, ATMs are more useful.
- ATM gives service without any error.