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ATM: Automatic Teller Machine

The full form of ATM is Automatic Teller Machine. The machine is a telecommunications controlled and computerized device that provides customers with financial transfer related services, such as cash withdrawal, deposit, money transfer, or account information. The customer does not require the help of cashier, clerk or bank teller in this transfer process. Automatic Teller Machine (ATM) machines can be of two types; One with basic functions where you can withdraw cash and another with more advanced functions where you can deposit cash.

Advantages of ATM

• Withdraw money
• You do not always need to carry cash with you.
• You can check how much money is left in the account.
• ATM provides round the clock banking services to its customers, you can withdraw cash at any time, day or night.
• Withdrawals and deposit slips are not required to withdraw or deposit money.
• Access to a bank from any part of the world: Essential banking services such as deposits, transfer of funds, etc. can be obtained by customers from any part of the world.
• Expansion of services to any corner of the world: Banks can extend their services to any corner of the world by providing electronic access to their customers.
• The ATM is faster than withdrawing cash from the bank, does not have long lines.
• It reduces work pressure on bank employees and avoids long lines in the bank.
• You can withdraw money from ATMs abroad.
• It provides service without fault. The customer can get the exact cash. Human mistakes are unlikely in ATMs.
• Customers do not get dirty or tattered notes from ATMs.
• At most, the ATM provides confidentiality in the customer’s banking transactions.

Disadvantages of ATM

• If an ATM machine hacks, you can get your details.
• There is a limit of cash withdrawal from ATMs. For example, many banks do not allow withdrawals of more than 50,000 at a time.
• Possibility of misuse of ATM card: ATM card if lost, can be misused. Many such incidents have happened.
• Loss of personal contact with banks: Customers lose personal contact with their bankers.
• The ATM can be offline (system down).
• ATM cash can run out.
• In some banks, the fees charged for using ATMs can be expensive.
• It is very difficult for illiterate people to use it.

Other full forms of ATM