ATM – Full Form, Types, Functions and Advantages
ATM Full Form
The full form of ATM is Automated Teller Machine. ATMs allow customers to withdraw cash, deposit cash, transfer funds between accounts, check their account balance, and perform other banking transactions. As per a report released by market research firm Statista, there were over 238 thousand ATMs across India as of 2021.
Types of ATMs
There are primarily 6 types of ATMs:
1. Green Label ATMs
These ATMs are used for agricultural purposes
2. Orange Label ATMs
These ATMs are used for share transactions
3. Pink Label ATMs
These ATMs are specifically designed for females to help in skipping long queues
4. Yellow Label ATMs
These ATMs are used for e-commerce transactions
5. White Label ATMs
These ATMs are an alternative to bank-owned ATMs and are primarily used to expand the ATM network in areas where it is not economically feasible for banks to set up their ATMs.
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Functions of ATM
Some of the functions of ATM include:
- Cash withdrawals
- Cheque deposits
- Transfer of funds
- Account balance check
- Provide other banking services such as bill payments, mobile recharges, and ticket bookings
- Authenticate customers using bank cards and PINs
- Securely process transactions through encrypted communication channels.
Advantages of ATM
Some of the advantages of ATM include:
- 24/7 access to banking services
- Saves time
- Increased security
- Wide range of banking services
- Easy accessibility
Disadvantages of ATM
There are a few drawbacks of ATMs. They are:
- Transaction limit
- Technical errors
- Limited services
- Fraud risks
- Transaction fees
Final World
ATMs (full form – Automated Teller Machine) have made banking more convenient and accessible for customers, and they have become an essential part of the banking infrastructure around the world. Now that you know about ATM full form and ATM services, you will be able to understand other minute details pertaining to ATM services even better.
