Full form ATM – What is ATM – How ATM Works

Published by Sanjeev on

Full form ATM

Full form ATM – Friends, today we will talk about ATM. You will know what is the full form of atm and why use ATM. What is ATM and how ATM works?

What is full form of ATM

ATM is called Automated teller machine in English.

ATM is a kind of computer with which you can do a lot of your work related to the bank.

Friends, all of you, we have used ATMs at one time or another. Although it may not have reached the far-flung village, but almost everyone knows about it.

But today we will know how it is used and how it works etc.

Full form ATM - What is ATM - How ATM Works

History of ATM

The first use of ATM was in 1967 in London. And see today, ATM has become a common and very important machine all over the world. Nowadays ATM almost necessary in banking world and for all banks.

You will find ATMS in bank premises and such ATMS are called as on-premises ATM.

But the good thing with ATM is that it doesn’t need to be always in bank premises and such ATM’s which are not in bank premises are called as off-premises.

See how much benefit it offers. Suppose there is no bank in or around your village, but if the bank has an ATM, then you can withdraw money and do many other things that you can do in the bank.

So you will be able to see off-premises ATMs anywhere , at the airport, at the railway station, at a shop or in malls etc.

How ATM works

So you used ATM so many times, have you ever thought how ATM works. For example, how do you get money out of it?

So as we said earlier – ATM is like a computer. So let us say that you want to withdraw money , let us try to understand how it will work.

One thing to keep in mind is that you must have an ATM card to use an ATM. We also call ATM Card Debit Card.

Every ATM card or Debit Card has a PIN that only you know. You should not reveal your ATM Card or Debit Card PIN to anyone.

Without ATM Card or Debit Card you will not be able to use ATM.

So let us see how it works

  • First you will put your ATM Card or Debit Card in ATM
  • After that the ATM will ask you to enter your PIN.
  • Then you enter your ATM Card or Debit Card PIN
  • The ATM will check that you have entered the correct PIN or not. If you have not entered the correct PIN, you will not be allowed to do anything further. So remember your PIN and enter it correctly
  • Once you have given the correct pin pulse, then it will show you many options.
  • One of them is the option to “withdraw money”. You have to press that option.
  • Then the ATM will ask you how much money you have to withdraw
  • Input the amount you want to withdraw. Suppose you have to withdraw 500 rupees, then input 500 there. For this, you have to press the button of 5, 0 and then another 0.
  • When you press the OK button, then the ATM will check how much money is in your bank account.
  • If there is less money in your bank account, then it will give you a message that your transaction has failed because your bank account does not have that much money (it is also called insufficient fund).
  • If you have sufficient money in your bank account, then money will come out of your ATM and your account will be debited with the amount you have withdrawn.

So this is how the whole process works.

How does ATM know how much money is there in your account?

This is also a good question. The ATM gives money only by checking your bank account. But how does an ATM contact your bank?

Well we will give you all this information. Keep reading.

Like we said earlier that ATM is a kind of computer, then it connects to your bank’s server through internet and checks your bank account.

Frequently asked questions

What is the full form of ATM

The full form of ATM is Automated Teller Machine

How does ATM work?

The ATM connects to your bank through the Internet and brings you information about your bank account and you can use ATM to avail banking services.

What are the types of ATMs?

On Premises ATM, Off Premises ATM, White Label ATM, Brown Label ATM etc.

What are the advantages of ATM?

You can avail banking services using ATM. You do not need to go to the bank for that. Almost all the daily tasks that you do with the bank can be done from the ATM.

What is ATM primarily used for?

People mainly use ATMs to withdraw money. You can also open a fixed deposit using the ATM. Complaints can be given. Check book can be applied. . e.t.c

How much money can be withdrawn from an ATM?

It depends on your account type and your bank as well that how much money they allow you to withdraw at one go.

Are ATMs open 24 hours?

Yes, ATMs are generally open 24 hours a day.

Is ATM Card necessary?

Without an ATM card, you cannot withdraw money from the ATM, nor you can use any service of the ATM.
ATM card, also known as debit card, is required to use ATM

What to do if ATM Card does not work?

If the ATM card is not working then you have to check what is the reason for it. The card may not be active or its PIN is incorrect.
In such a situation, you can call the customer care number of your bank and request a new PIN to be generate and sent to you. If the card is not working, you will have to contact your bank.

Can an ATM card get stuck in an ATM?

Well, it is very un likely. That is, it there is a very rare chance that it happens like that but if it happens then you should immediately tell your bank.
You can call your bank’s customer care phone number and tell them and also block your card.

Does the ATM never run out of money?

No. It’s not like that. Money is loaded at the ATM. And when all that money is exhausted, then money cannot be withdrawn from the ATM.

Can we use a debit card of any bank in an ATM

Yes, you can use your ATM card at any ATM machine. That is, an ATM machine can be used for any bank.

Is it safe to use ATM

Yes it is absolutely safe to use ATM.



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Sanjeev

Hello Friends, my name is Sanjeev and I have been in the industry of education, training and mentoring for 20 years now. I love imparting what I have learnt and sharing my knowledge. I hope my articles benefit you. You can write to me at skumar@indiacareeradvice.com

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