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SPEEDY Railway Book (English)

Automated Teller Machine (ATM)


Automated Teller Machine (ATM) is an electronic machine operated by a customer himself to deposit or withdraws cash. In India, Dr. C Rangarajan Committee was recommended the establishment of ATMs. The standalone ATMs started making their appearance in India in the early 1990s.

For ATM, a customer requires an ATM card (a magnetically coded plastic card), read by the machine. To use an ATM, the customer has to insert the card in the machine and quote his PIN (personal identification number). After establishing the authentication, the ATM permits a customer to make transaction and after processing the transaction, the machine performs the desired function. On completion of the transaction, the customer’s card is ejected.

Models of ATM:
  • Online ATM – These ATM are connected to data base of the bank and provide transactions on real time basis, online.
  • Stand alone ATM – These types of ATMs are not connected to any ATM network. The transactions are restricted to the ATM branch and link branches only.
  • Onsite ATM – The ATMs that are installed within the bank branch premises.
  • Offline ATM – These types of ATMs are not connected to banks’ data base.
  • Offsite ATM – The ATMs that are installed away from the bank branch premises, such as in a shopping center, airport, railway station etc.
  • Networked ATM – These ATMs are connected an ATM network.

Use of ATMs of other banks:
The customer can use the ATMs of other banks for cash withdraw and balance enquiry, free of charge with effect from 1st April, 2009, under RBI “Free ATM access policy” Act. The details are –
  • It permits only 5 free transactions per month including cash or non-cash transactions.
  • Access is for saving bank accounts;
  • For transactions beyond the free transactions, banks charge Rs. 20 per transaction.

PIN (Personal Identification Number):

PIN is the numeric password for use at the ATM. The PIN is separately mailed or handed over to the customer by the bank while issuing the card. This PIN has to be reset to a new PIN by the customer.
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