FULL FORM OF ATM

What is the Full form of ATM

The full form of ATM is an Automated Teller Machine. ATM is a computerized machine that dispenses cash from a bank account. Money is withdrawn from these machines from your personal bank account. Like in a financial institution branch the cashier formally called as a teller counts cash and handover it to the client. In the same pattern, the machine does it for you. Therefore, it is referred to as an Automated Teller Machine.

When you need money. You may stop at an ATM, insert a card (your Debit/Credit card) into the card reader of the machine, and enter a PIN. It responds and activates on the display screen within a minute you walk away with your cash and a receipt. These ATMs machines make the banking process very easy and no need to stand in long queues for withdrawing cash from the bank. The debit/credit card contains the user account number and Pin for cash withdrawals. The information is sent through the ATM to the bank's computer to confirm the balance and authenticity(of the cardholder via viz of the card and PIN) and then dispenses the cash and transmits a complete notice. 

ATM machine is of two types. One with basic functions where cash can be withdrawn and another one is more advanced in which cheques and cash can be deposited. Now a day, ATM has lots of functionalities along with its basic use of cash meting out. Some of them are cash and cheque deposit, Fund switch, cash withdrawal and balance inquiry, new PIN generation and PIN change, mini statement, bill payments, and cellular recharge, and so forth.

How Money Is Dispensed From ATM

ATM is a consumer-friendly machine. It has input and output devices that make it easy to use for withdrawing and deposit money. 

Input Device: The input device of the ATM is a card reader. It reads the data of the card stored in the chip. When Card is inserted in the card reader of the ATM, it reads the details and passes it to the server. On the information of the account and instructions received from the person, the server permits a cash dispenser to dispense the cash. 

Keypad: It allows the user to offer the information asked by the device like personal identity number, amount of money, receipt required or not, and many others. The PIN number is sent within the encrypted shape to the server.

Output Devices:

Speakers: it is supplied in the ATM to produce the audio comments whilst a key's pressed.

Display Screen: It shows the transaction-related records on the screen. It shows the steps of cash withdrawal one at a time in the collection. It could be a CRT screen or an LCD display screen.

Receipt Printer: On the Printer receipt details of the transaction is printed on it. Date & Time of the transaction, the withdrawal amount, and balance. 

Cash Dispenser: The high precision sensors furnished in the ATM allow the cash dispenser to dispense an appropriate amount of cash as required through the person.

Interesting Facts:

ATM invented by John Sphered Barron.

First ATM installed by Barclays Bank Of London in 1967 in the world.

In India, ATM was installed by HSBC (Hong Kong and Shanghai Banking Corporation) in the year 1987.