ATM and Its Types

Automated Teller Machine (ATM)

An automated teller machine also known as an Automated Banking Machine (ABM)  is an electronic telecommunication device that enables the customers of a financial institution to perform financial transactions, particularly cash withdrawal, without the need for a human cashier, clerk or bank teller.

The services normally offered at an ATM are:

• Cash withdrawal
• Cash Deposit
• Account information
• Regular bills payment
• Balance Enquiry
• Mini Statements
• Money Transfer
• Purchase of Re-load Vouchers for Mobiles

Note– Banks have been mandated to resolve customer complaints regarding failed ATM transactions by re-crediting the customer’s account within 7 working days from the date of complaint. Banks have to compensate the customer an amount of Rs. 100 per day for delays beyond 7 working days.

Types of ATMs

 White Label ATM 

White Label ATMs are those ATMs which set up, owned and operated by non-bank entities. To aid financial inclusion and drive ATM penetration in the country the Reserve Bank of India has permitted the launch of White Labelled ATMs (WLAs) i.e private non-bank companies to set up, own and operate its own brand of ATMs in the country. These white label ATMs will not display logo of any particular bank. TATA launched the first white label ATM in India under the brand name of Indicash.

 Brown Label ATMs 

These ATMs are owned and maintained by service provider whereas a sponsor bank whose brand is used on ATM takes care of cash management and network connectivity.

 Onsite ATMs 

These are ATM machines that are set up in the premises where there is a bank branch so that both the physical branch and the ATM can be used. This is known as being on site and this can be used for several purposes. Many people can use this to avoid the lines that are present in the branch and hence save on the time required to complete their transactions.

 Offsite ATMs 

These are the machines that are set up on a standalone basis. This means that the bank has a place where there is only an ATM machine then this becomes an offsite ATM. This is done to ensure that the bank reaches out to more geographical areas and that people are able to use its services even when there is no bank branch in the area.