Types of ATM and benefits of ATM


Different types of ATM are available and the main benefit of this ATM is.

There are five types of ATM these are:

Onsite Atm-Is situated either within the branch premises or in very close proximity of the branch.

Offsite Atm- Is not situated within the branch premises but is located at other places, such as shopping centres,airports,railways station and petrol stations.

Worksite ATM-Is located within the premises of an organisation and is generally meant only for the employees of the organisation.

Cash Dispenser-Allows only cash withdrawls,balance enquiry and mini statement requests, cash dispenser(CD) is generally used as the ATM,however the customer cannot deposit cash or cheques in a CD, wherear, they can use ATM both for cash withdrawl and for depositing cash or cheque.

Mobile ATM- refers to an ATM that moves in various areas for the customers. Few priavte banks have introduced ATM on wheels.


Benefits fo ATM:::
The benefits of ATMs are manifold and extend to the customer and banks.

The benefit of ATMs for customers are:

Provide 24*7 and 365 days a year service.

Offer quicker and efficient service.

Allow privacy in transactions

Are error free

Enable cardholder to access cash at any location regardless of where they
maintain their accounts.

Offer flexibility of cash withdrawls to the customer

Enable fund transfer across branches,in the linked acocunts

Offer anywhere banking facility.


The benefits of ATM for banks are:

Is an alternative to extend banking hours

Is cheaper if transaction are large in number,thereby,reducing footfall at the
branches

Is an alternative to opening new branches

Reduces the operating expenses of the bank

Helps abnks to avoid transportation of cash and cash handling empoyees

Can be located in any convinient location in any form as wall unit,lobby unit or a window unit.

Increase market penetration

Relieve the bank employees from routine transactions so that they can focus more on analytical and innocative work

Enables bank officials to up-sell or cross-sell either same products or different products


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Comments

Guest Author: Dhiraj bhattarai22 Aug 2015

This is a good article, but I am confused as there are so many types of ATMs. Can you tell me the difference between:
1. Standerd ATM
2. Solar ATM
3. Biomatric ATM

Author: Swagatika Pattanaik05 Sep 2016 Member Level: Gold   Points : 3

Nice presentation by author about benefits of ATM.
Automated Teller Machine is beneficial for both the bank and customer. As now days banks are providing lot many services through ATM machine, starting from cash deposit, cash withdrawal, mobile recharge, LIC premium payment, update mobile number, money transfer.
Which not only save the work load of bank staff, also it saves lot of time and paper work ( stationary items).
For customer they do not need to visit branch ( although there is some limitation on amount for deposit and withdraw through ATM machine).
Remember some points while using ATM machine for money withdraw.
Banks charge some money around Rs 20 to withdraw money from other bank ATM.
Suppose you are a customer of ICICI bank and having ATM card, you are allowed to withdraw monthly five times from other bank ATM.
Do not share your ATM pin at ATM counter, if you are not aware to use of the ATM card, then call the security guard, if security guard is not available then go to your branch and ask them for a demo.
Update your mobile number at bank so that for every transaction you can get sms alert and can know the authentication of your transaction.

Author: Partha K.19 Sep 2016 Member Level: Diamond   Points : 10

An useful article from the author regarding the Automated Teller Machine (ATM). In my response I would like to focus my attention on the so-called benefits of ATMs mentioned by the author. My observations are:-
(a) Do all ATMs work 24x7 for 365 days? No. In rural areas many ATMs are closed at night. Many ATMs remain dysfunctional for days.
(b) Are ATMs alternative to new branches? No. For demand drafts, cash deposits, for enquiry, for taking loan, for opening and closing accounts, and for various other purposes, a customer has to visit bank branches. Generally ATMs only help in cash withdrawals and to get mini-statements.
(c) Do ATMs reduce operating expenses? No. The bank has to employ guards to protect the ATM. Extra precaution is required while putting/keeping cash in ATMs. Moreover, in case of ATM theft, banks suffer a lot.
(d) In case of major internet malfunction, ATMs don't function.

In addition to these aspects, different limitations imposed on customers against withdrawal of money from other banks' ATM beyond a certain limit doesn't serve the purpose of customers. Imposing hefty charges in such cases is illogical and unfair. Furthermore, most of the ATMs in metro cities don't give out notes of denomination of Rs. 100/-, causing unnecessary expenditure for common men to use notes of bigger denominations.

The author could have also mentioned the above aspects. However, I reiterate that the article is useful and informative.



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