What is ATM – Queries on ATM (Part-1)

What is ATM – Queries on ATM

ATM- A machine that dispenses CASH called “Automated Teller Machine

An automated teller machine (ATM) is an electronic machine at any Bank outlet that allows customers to withdraw or Deposit money and complete the basic transactions without the aid of a branch representative or teller.

Please note:

  • Many ATM’s does not have cash deposit option.
  • You can withdraw cash using credit card or debit card depending your bank facilitate this on your card.

Features

  • You can withdraw cash
  • You can deposit cash
  • You can do fund transfer
  • You will get account related information such as account balance etc.
  • You can generate or change PIN of ATM card
  • Prepaid mobile recharge
  • Bill payments

Types of ATM

ATM’s are basically of 7 types:

  1. White label ATM- These ATM are set-up by Non-Banking sector.
  2. Brown label ATM- The sponsor of these ATM are specific bank whose brand is shown in ATM but managed by Service provider or 3rd party and not directly by bank.
  3. Green label ATM- Such ATM is provided only for Agriculture transactions.
  4. Yellow label ATM- Provided only for E-commerce
  5. Pink label ATM- Specific to Women banking.
  6. Onsite ATM- Normally you see ATM are setup within Bank, are called Onsite ATM.
  7. Offsite ATM-You can see ATM machine are placed at different places without having any Bank branch, such ATM are called offsite ATM.

Why ATM is important?

To run a smooth business with a client trust on providing safety to their physical or electronic money, ATM play a major role. Other than this, it helps in saving money on banking fees. ATM’s help in retail stores, Hotels, cafe and many more places.

Next question: What is ATM card?

An ATM card is a card issued by Bank or the financial institution to make a payment and also allows customer to use it or access it on any ATM machine.

Types of ATM cards:

There are 2 types of ATM card:

  1. Plastic ATM card with magnetic strip (Old cards slowly getting replaced with smart card)
  2. Plastic Smart card with a chip (Small sim type)

Both the card contains a Unique card number, Card expiry month/ year and CVV number in the back panel uses for security method.

ATM cards are called with many names:

Bank card, Money access card (MAC), Client card, key card, cash card, debit card, credit card.

Please note: Charge and proprietary cards cannot be used as ATM cards.

Another important point is, if you withdraw cash using Credit card, an interest will be charged starting day 1, you withdraw the amount as per guidelines, so be careful and try to avoid withdrawing cash using credit card.

Size of ATM card

The size of ATM cards is 85.60 mm × 53.98 mm (3.370 in × 2.125 in) and rounded corners with a radius of 2.88–3.48 mm, in accordance with ISO/IEC 7810#ID-1. Other card like Credit or debit cards are having same size.

Card Network

ATM cards which is called as Debit card too, can be used at any merchant outlet for making payment against shopping with any service charge as per government mandate. A 4 digit security pin which is called as ATM pin, must be used for making any payment.

Benefits in using Debit card

  1. Avoid fees and service charges.
  2. Stay accountable for each spending.
  3. Faster payments for better budgeting.
  4. No interest charges until paid on time.
  5. Security on card.
  6. Debit cards are linked to interest-earning accounts.
  7. Bank and Merchant Rewards.
  8. Lower fees for tax payments with credit cards.

Disadvantages of ATM’s

We talk about benefits Only, now see the disadvantages.

  1. Fraud– You can be crooked by the frauds. Who knows the criminals can fit skimming devices and small cameras in the ATM. The device will capture your Bank account details and PIN, which the frauder can use and withdraw money from your account.
  2. Fees– Banks usually charge fee using own Bank ATM after a particular free transaction or using other bank ATM.
  3. Theft risk– There is a possibility that you are going to an Isolated area where ATM exist but possibility of theft or loot is possible. Sometimes, It took a little time to take a card out, insert it in the machine, access your account and get your cash. Within this duration, a thief can attack you and grab the money.
  4. Card retention– Everyone knows that ATM gives money but sometimes ATM can take it back. Don’t worry, I am not talking about money but Yes Card which can be stuck due to different reasons, say machine malfunction, ATM pin wrong entered or can be other reasons.

Question and Answers (FAQ)

How much money Kept in ATM?

In India, An ATM can hold 8-15 lakhs INR per machine. Banks fill currency in four slots that hold different denomination currency.

In US, it will be $2,00,000 in an average size machine.

Which software is used in ATM machine?

Now a days, it is Microsoft Windows Operating system (Former Windows XP professional or Embedded)

Can you deposit can in ATM?

Yes, you can but it varies on bank to bank. First, the ATM must accept deposits. In some machine, cash can be deposits directly and some need money in Envelope.

Process: You will need to use your debit card along with PIN to access your account. Select in which account you want to deposit money either direct cash or using envelope.

How can I use my first ATM card?

1. Visit ATM and insert an ATM card.

There are 3 types of ATM machine to insert card with options.

  • When you insert the ATM card, it will remain inside until your transaction completes
  • When you insert ATM card, you need to insert through the side with bank logo and chip and then taken out and do the transaction.
  • Insert the ATM card, do transaction but money will not come out until card comes out to ensure user must not left card inside machine.

2. ATM user will be asked to select the language of his / her choice.

3. Use the keypad on ATM machine and enter the 4 digit PIN to proceed further. Here also, 2 options exist depend on Bank ATM machine.

  • Few banks have option to enter ATM pin and then do the transaction
  • Few banks having perform the transaction steps and enter ATM pin in the last before money withdrawal.

Can ATM do make mistakes?

The answer is YES. Look what kind of mistakes ATM do.

  • Sometimes, it can account the deposit amount incorrectly
  • Speed to dispense cash is too slow
  • Receipts will not come out after transaction
  • Cash deposit done but transaction error that no cash deposit
  • During amount withdraw, amount deducted from account but no cash withdrawal done.

You need to spend extra time in getting this issue sorted to call customer care or visit to bank branch for raising complain.

How often are ATM’s refilled?

  1. Daily once in a day, if it is within Bank branch or other places too.
  2. Once in a week, if the ATM is in isolated place and transaction volume is very low.
  3. Multiple times in a day especially during weekend where transaction flow is high.

How much cash can you deposit at once in India?

  • Rs. 49,000/- in case of cardless transaction
  • 2 lakh in a day using Debit card

Do ATM cash deposits go through Account immediately?

Yes, as soon as you deposit cash in ATM, it will be shown in your bank account immediately and you will get a transaction message on your phone, if it is linked to your bank account and SMS service is active.

Can I withdraw money from different bank ATM?

Yes, In general you can withdraw money from any bank ATM except few banks who restrict other bank card to withdraw money. But remember, you will get charged in case your free limit of withdrawing money from other bank ATM is exhausted.

How do I know ATM card owner?

  • If you get the card directly from bank during your visit, the card will not have your name mentioned because bank issues general card with 16 digit card number.
  • If you get card through courier after applying from Bank, the name will appear on bottom of card.
  • In case the card does not have account holder name, you can swipe card in any ATM and the card holder name will appear first on ATM machine screen with a Welcome note.

What happens if you forget to take cash from ATM?

In case the money dispensing is slow and customer could not take cash, it will be sucked back to machine and the same will be refunded to customer as per few bank policies. Whereas, few banks have policy to claim it manually.

Can we withdraw money without ATM card?

Yes, you can withdraw money without ATM card but in specific banks only.

Example: SBI using YONO app and ICICI using iMobile app

SBI customers can withdraw a minimum of ₹500 and maximum of ₹10,000 in a single transaction.

  1. An SBI account holder can log into YONO app using the bank’s internet log-in and password.
  2. After logging into the app, the account holder needs to click on the YONO Cash.
  3. Go to the ATM section and enter the amount you want to withdraw from the ATM.
  4. SBI will then send you a YONO Cash transaction number on your registered mobile and the same need to use this number and the PIN set by him at any of SBI’s cardless transaction enabled ATMs for withdrawal of cash. It is valid for 4 hours only.

Please note: At the ATM, the user needs to use the option Card-Less Transaction on first page of the ATM and then to Yono Cash and enter the details.

Same way, you can withdraw cash from ICICI bank using iMobile app

The daily transaction limit as well as per transaction limit is set at ₹20,000

  1. Log into the ‘iMobile’ app and select ‘Services’ and ‘Cash Withdrawal at ATM’.
  2. Enter the amount and select your account number.
  3. Create a 4-digit temporary PIN and submit.
  4. You will immediately receive a reference OTP (One Time Password).
  5. Visit any ICICI Bank ATM and select Cardless Cash Withdrawal.
  6. Select ‘enter mobile number’and head over to ‘reference OTP number’.
  7. Input your temporary PIN and select the amount for withdrawal.

How can I check my ATM balance?

Most of the Banks have unique way to check balance by using “Bank Balance” or “Balance inquiry” buttons on ATM screen.

Can you use ATM card at stores?

Debit cards are well known as ATM cards and can be used not only to withdraw cash from ATM but you can use it at any retail store for buying grocery or other shopping. The money will be directly debited from your Bank account. Please ensure you set 4 digit pin that will be used while shopping as safety measure.

What should I do if my ATM card is captured?

  1. Inform Bank immediately
  2. Call customer care related to particular Bank and provide ATM details or place where the card is stuck
  3. Immediately ask to block the card or get it retrieved. Asking for blocking is to avoid any card misuse.

How long does money stay in cash machine?

If you failed to remove money, machine will pull back the money in 30 seconds. If you are withdrawing money from same Bank ATM, it will be credited back immediately. But if other bank ATM is used to withdraw money, it will take time as per Bank policy, may be a week or month.

Is it safe to deposit cash in ATM?

yes, it is safe but it depends whether the Bank has provided such facility to deposit cash or not. Example, SBI has given provision in certain ATM’s and only in few specific machines to deposit cash.

Can an ATM miscount money?

It depends on the ATM but normally it won’t happen. ATM simply collect the money or envelopes. Tellers will have to count and verify the deposits. So, even if the customer or machine made a mistake, the tellers will catch it.

REST OF THE FAQ (QUESTION & ANSWERS) WILL BE SHARED IN MY NEXT BLOG. STAY IN TOUCH..

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Neeru

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