ATM Full Form

ATM Full Form



ATM full form is Automated Teller Machine.

In this article we will give you complete information about ATMs. And many more So stay tuned and read this article completely till last. So You can’t miss any important information about the ATM.

What is an ATM ?

The full form of an automated teller machine is an automatic teller machine. It is an electronic device that only bank customers can use. Used to conduct transactions related to any account.

Here, the user uses a special type of plastic card to access their account, where the user’s information is encrypted on the back of the card on a magnetic stripe.

The magnetic stripe has an identification code that uses the card that the modem sends to the central bank computer. So when the user inserts the card into an ATM to log into their account, only this identification code will automatically match so that if the code matches, the account transaction is processed.

History of ATM.


John Shepherd-Barron was the inventor of the ATM or automatic teller machine, which invented it in the 1960s. It is called an automatic calculating machine in Hindi. With this, an automatic banking machine, cash point, also called Bankomat.

The generation of modern ATMs was first used by Barclay Bank in London on 27 June 1967. Earlier in the 1960s, ATM was known as Bankograph, it is believed to have been first used in London and its invention is credited to John Shepherd-Barron. He was born in Shillong, Meghalaya on 23 June 1925 in British India.

Baron was in favor of having an ATM PIN of 6 digits, but his wife told him that 6 digits was more and people would not be able to remember it. For this reason, he later made a four-digit ATM PIN. Even today, a four-digit pin is still in circulation.

The ATM facility was first introduced in India in 1987. The first ATM in India was set up by Mumbai and Shanghai Banking Corporation (HSBC) in Mumbai. At present usage of ATMs has become an important part of routine. Since invention happens whenever its need is its parent.

In the same way, the need of ATMs in western countries came when those people or financial institutions had to face problems due to the demand to increase the salary of the workers dealing with cash and lack of well skilled people .

That is why after the invention of the ATM, many of the bank’s work became possible through ATMs because a lot of work can be done in self service. It does not have to depend on the bank employee. But when the idea of ​​ATM came to the mind of its inventor, he had to face many difficulties.

Because even at that time, banks used to consider money transactions as a very sensitive matter and they did not accept to leave such money in the hands of any machine. This was a big risk, so no bank was ready to use it.

Even after this, Luther did not lose courage and continuously spent 21 years of his life in its development, after which he applied for its patent in ‘June 1960’. And in February 1960, he got his patent as well.

Devices of Automatic Teller Machine


Input Devices

  • Card Reader
  • Keypad

Output Devices

  • Speaker
  • Display Screen
  • Receipt Printer
  • Cash Depositor

Card Reader: It occurs inside the ATM machine. In this, the ATM card has to be swiped. After swiping the card, this card reader takes information about the card from the magnetic strip on the ATM card.

Keypad:  ATM PIN has to be entered to withdraw money or for balance inquiry. And you enter this pin through the keypad.

Speaker: Whenever someone presses the key, the voice comes from the speaker.

Display Screen:-  All information appears on the display. It is used at all ATMs.

Receipt Printer: Receipt Printer shows your complete details like your Withdrawal, date and time, Amount which has been withdrawn and how much balance is there in your account with it in the receipt.

Cash Dispenser: The heart of any ATM is Cash Dispenser. This is the central machine of any ATM machine from where money is withdrawn as needed. From this portion any user can collect their money.

The main task of a cash dispenser is to count each bill first and then withdraw the required money. If a note is ever folded, it is sent to another section and you will get a rejected bill in the output. All these things happen with the help of high precision sensors. Records of all ATM transactions are kept with the help of RTC devices.

Automated Teller Machine Working Principle.

Automatic calling machines are data terminals with only two input and four output devices. This device is connected to the processor. The processor is the heart of the ATM machine. All ATMs operating worldwide rely on a central data system. Automatic machines (ATMs) must communicate with and communicate with the host processor (server).

The receiving processor communicates with the Internet Service Provider (ISP). It is the gateway to all ATM networks available to card holders. When the cardholder wishes to conduct an ATM transaction, the user provides the necessary information through the card reader and keyboard. The ATM machine forwards this information to the processor receiving it. The receiving processor requests the transaction at the cardholder’s bank.

If the cardholder requests money, the receiving processor receives money from the cardholder’s account. Once the money is transferred from the customer account to the main processor bank account, the processor sends approval codes for ATMs and authorized money delivery devices. In this way you can receive funds from ATMs. The ATM network is completely based on a database environment. This will make cash life easy and secure.

How to Operate an ATM Machine?


  • First of all you need to find an ATM near your area, if possible, the best ATM from the same bank that you have the best. By the way, if you want, you can withdraw money from any bank’s ATM.

  • Now insert the ATM card into the machine. The method for this will be shown in the instructions facing the ATM. Log directly into the ATM and the green light usually stays there. Insert the ATM directly into the machine, otherwise the machine will not read. If it is not read, you will be prompted to enter it again on the screen.

  • Once the cash machine reads your card, you will have the opportunity to choose the language. ATMs typically work in both English and Hindi. You can choose any one of these two languages ​​as per your choice.

  • Now you are requesting a PIN for your business. This PIN is similar to the personal identification number that the bank provides or refers to with the ATM. Which you don’t have to share with anyone.

  • After entering the correct PIN, a new page will open on the screen in front of you. Now you need to choose your account type. Such as a savings account (savings bank account) or current account (bank zero). Whoever you are, you can make the right decision.

  • After selecting the account type, you must enter the amount you wish to withdraw. Keep in mind that different banks and different accounts have different withdrawal limits. For this, first confirm it with the bank.

  • Once you enter the amount and click “OK”, the recorded amount will be withdrawn from the device. In this way you can withdraw your money from the ATM very easily. Remember that you have to deposit more than the amount deposited in your account, otherwise you may have to pay some fees for it.

  • In this way your first transaction is completed.

  • If you want to withdraw money again, there are also opportunities. Conversely, if you press the cancel button, your transaction will end.

Features of ATM.


  • You can transfer funds between linked bank accounts.
  • Here you can receive account balance.
  • You can print your recent transactions list.
  • You can easily change ATM PIN.
  • You can easily deposit cash here.
  • Prepaid mobile recharge.
  • You can make bill payments.
  • You can withdraw cash.

Advantages of ATMs.


  • The ATM provides 24 hours service.
  • The ATM provides privacy in banking communications.
  • The ATMs banks reduce the workload of employees.
  • The ATM provides new new currency notes to the customer
  • The ATMs are a good option for customers of banks.
  • The ATM is very useful for travelers
  • The ATM provides service without any error.

Disadvantages of ATM

  • It charges some amount once free transactions exceed.
  • Once the ATM card is damaged then cash withdrawal is not possible.
  • Possibility of cash robbery from ATMs.
  • ATM pins can be easily hacked by criminals by operating an ATM.
  • The risk of theft is high while going to ATMs.

Precautions while using ATM


  • Keep your pin secret.
  • Do not reveal your ATM PIN to anyone.
  • Protect your ATM Card.
  • In case of lost or stolen ATM card, file police complaint immediately.

Also Read- Full Form Of HSC

Also Read- Full Form Of SSLC

Also Read- Full Form Of PDF

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