What is ATM and how to use it?

What is ATM and how to use it ?

You must be using ATM a lot for everyday tasks. Have you ever used an ATM to withdraw or send money? But do you know what is ATM and what is the full form of ATM ?

ATMs are used with different names in different parts of the world. In some countries, ATM is also known as Autiomatic Banking Machine. Today in this post we will tell you complete information about ATM. If you want to know about ATM then read this post completely.

What is ATM ?

The full form of ATM is Automated Teller Machine. It is an electronic device which can only be used by banks for rent. It is used to perform transactions related to any account.

Here the user uses a special type of plastic card to access his account. In this card, the user’s information is already saved on a magnetic strip.

The magnetic stripe contains an identification code which, using the card, transmits the identification code via a modem to the bank’s central computer.

The identification code is automatically matched when the user inserts his card at the ATM to access his account. So that this code can match and the transaction related information is available in the account.

Full form of ATM:

The full form of ATM is “Automated Teller Machine“.

What is ATM ?

ATM is “Automatic Teller Machine“.

What is the history of ATM

John Shepherd-Baron was the inventor of the ATM or Automatic Teller Machine, he invented it in the 1960s.

This is also called Automatic Calculator Machine in Hindi. Along with this, Automatic Banking Machine is also called Cash Point.

The modern ATM was first used by Barclay Bank in London on 27 June 1967. Earlier in the 1960s, ATMs were known as Bankco Graph.

It is said that it was first used in London. The work of its invention was given to John Shepherd Baron. He was born on 23 June 1925 in Shillong, Meghalaya in British India.

Baron was in favor of having a 6-digit PIN for an ATM. But his wife told him that 6 marks are more and people will not be able to remember it.

For this reason, he later created a 4-digit ATM PIN. Even today the 4-digit PIN is still in vogue.

ATM facility was first introduced in India in 1987. The first ATM in India was set up in Mumbai by the Mumbai and Shanghai Banking Corporation.

At present the use of ATMs has become an important part of the daily routine. One’s invention happens when it is needed.

How does ATM work ?

If you want to use ATM then you must have a plastic ATM card. Card swap is allowed in some ATM machines, some have to drop the card.

When you swap your ATM in the machine, the machine takes the information of your account information and it then asks for the information of the ATM pin. After this the machine allows you to do the transaction.

Types of ATMs :

Now we will give you information about the types and types of ATMs.

1.Online ATM:

Such ATMs are connected to the bank’s data base through internet for 24 hours. With this, you cannot withdraw more than the total amount available in your account.

2.Offline ATM:

These ATMs are not linked to the bank’s database. If the amount in your account is less than the required amount, then you can withdraw from it. If you withdraw it, the bank may also impose some fine on you.

3.On Site ATM:

ATMs used inside the bank premises are called on-site ATMs.

4.Off Site ATM:

ATMs used at different places in the bank premises are called offsite ATMs.

5.Brown Lable ATM:

There is a service provider’s sponsorship on the machine lease and hardware of this type of ATM. But connectivity to the banking network is provided by the bank.

Parts of ATM ?

There are two types of devices in an ATM which provide ease of use to the user.

(1) Output Device:

1.Receipt Printer
This device provides your transaction details with a print receipt showing the balance, location, time, date, amount withdrawn.

Speakers are available in many ATM machines whose function is to provide audio feedback at the time of transaction.

3.Cash Dispenser
This device is an important device among the output devices of ATM. It is used to withdraw cash.

We use it to view our account information and operate the ATM. We do the entire process of transactions through this only.

2.Input Device:


We use the keypad in ATM to enter our PIN and to input the number of the amount to be withdrawn.

2.Card Reader

When we sweep our card in ATM, it reads our card information. This card has a magnetic strip, whose verification information is sent to the bank’s server.

How to withdraw money from ATM ?

1. Now you must have known about ATM. How can we withdraw money when we have an ATM card?

To understand this whole process it is described in detail here below. You can understand its details below.

2. You have to first find the nearest ATM of your area. If possible, the ATM machine of the same bank whose ATM you have with you will be even better.

3. Now put your ATM card in the machine and the method of this process will be shown in the instructions in front of the ATM machine. Insert the ATM directly and the green light usually stays on there.

Insert the ATM card directly into the machine or else the machine will not be able to read your information. If not, you will be asked to enter the screen again.

4.Once the ATM machine will read your card, you will be given a language selection club. ATMs mainly work in English and Hindi.

5. Once you have entered your PIN correctly, a new page will open in front of you on the screen. Now you have to select your account type like Savings Account or Current Account.

6. Once you have selected your account, you have to save the amount you want to withdraw. Keep in mind that different banks and different accounts have different withdrawal limits.

7. Once you have entered your amount and hit OK, the amount entered will come out of the machine. In this way you can withdraw your money from ATM.

What did you learn ?

In this post we have told what is ATM ? You must have known about ATM in detail.

We hope that by reading this post, you must have understood the complete information about ATM. Now you will not have any problem in using it.

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If you want to reach anything more then you can ask us through comment.

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