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What is the full form of ATM?
The word ATM is an acronym and the full of the ATM is “Automated Teller Machine”, It allows the smooth transaction by the clients by its automated banking assistance with the help of the bank representative for the transaction.
ATMs are very useful, it allows the customer to conduct fast self-transactions services such as transfer of money from account-to-account, payment of bills, deposits through the ATM, and cash withdrawals.
The bank in which the customer has the account usually pays the transaction fee for the withdrawal of money by the customer to the ATM operator. If the ATM belongs to the bank, then the operational charges are not paid by the bank or customer.
There are different names used all over the world for the ATM that are Cash Machine, ABM (Automated Bank Machines).
Types of ATM
The ATMs are usually two types:
- ATM basic unit allows only the detail of account balance and the permits the cash withdrawal.
- Other ones are those which allows the details of account, allows the credit line transfer and payments
Parts of ATM
There are input and output parts or tools in the ATM which allow the smooth transaction. The important ATM parts are given below:
On the back of the ATM card, there is a magnetic strip that stored the data of the customer and when the card is entered into the ATM the card reader scans the data and reads it. On the basis of the data authentication, the further transaction is performed.
The amount of the cash to be withdrawal, type of account, and pin of the ATM card is to be entered with the help of the keyboard.
The speaker produces the audio output when any button is pressed.
The ATM machine display shows the information and the transaction which is going to be performed.
After the completion of the transaction the ATM prints the receipt which has all the information about the transaction that as the amount of balance available in the account, cash withdrawal, etc.
The cash dispenser in the ATM gives out the cash accurately by using its sensors.
How ATM Works?
The working of the ATM is very simple, follow these simple steps:
- Enter your ATM card in the machine.
- Select the Type of account.
- Entered your PIN.
- Enter the amount of cash to be withdrawal.
- Collect the cash and the ATM will show the transaction is completed.
Ans.) ATM stands for the “Automated Teller Machine”, which is used for the money transaction mainly for the withdrawal of the money.
Ans.) The “Automated Teller Machine” (ATM) was invented by Do Duc Cuong, Donald Wetzel, and John Shepherd-Barron.
Ans.) The ATM was introduced in the year June 1967. It was first set up in the branch of Barclays Bank of London in England.
Ans.) The first ATM in India was set up in Mumbai in the year 1987 by the HSBC bank.
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