ATM Full Form | Full Form of ATM | What is ATM Full Form

ATM Full Form - Automated Teller Machine



  • ATM is an electro-mechanical machine that's used for creating financial transactions from a bank account.
  • These machines are wont to withdraw money from personal bank accounts.
  • This makes banking process very easy because these machines are automatic and there's no need of human cashier for transaction.
  • The ATM machine are often of two types; One with basic functions where you'll withdraw cash and another one with more advanced functions where you'll also deposit cash.

Basic ATM Parts

  • The ATM may be a user-friendly machine. It features various input and output devices to enable people easily withdraw or deposit money. The essential input and output devices of an ATM are given below:
 Input Output

Input Output

Input Devices

1. Card Reader

  • This input device reads the data of the card which is stored within the magnetic strip on the back side of the ATM card.
  • When the card is swiped or inserted into the given space the card reader captures the account details and passes it to the server.
  • On the basis of account details and therefore the commands received from the user server allows cash dispenser dispense the cash.

2. Keypad

  • It helps the user to supply the small print asked by the machine like personal number, amount of money, receipt required or not, etc.
  • The personal identification number is sent within the encrypted form to the server.

Output Devices

1. Speaker

  • It's provided within the ATM to provide the audio feedback when a key's pressed.

Display Screen

  • It displays the transaction related information on the screen. It shows the steps of money withdrawal one by one in sequence. It are often a CRT screen or a LCD screen.

3. Receipt Printer

  • It provides you the receipt with details of transactions printed on it. It tells you date and time of transaction, the withdrawal amount, balance, etc.

4. Cash Dispenser

  • It's the main output device of the ATM because it dispenses the cash. The high precision sensors provided within the ATM allows cash dispenser to dispense the right amount of money as needed by the user.

How ATM works ?

  • To start the functioning of ATM, you've got to insert plastic ATM cards inside the ATM machines.
  • In some machines you've got to drop your cards, some machines allows swapping of cards.
  • These ATM cards contain your account details and other security information within the form of a magnetic strip.
  • Once you drop/swap your card, machine gets your account information and asks for your PIN no. After the successful authentication, machine will allow financial transactions.

Read Also

What ATM does ?

  • Now a day, ATM features a lot of functionalities alongside its basic use of money dispensing. A number of them are:
    • Cash and Cheque Deposit
    • Fund Transfer
    • Cash withdrawal and balance enquiry
    • PIN change and mini statement
    • Bill payments and mobile recharge etc.
  • The first ATM was used to dispense cash for customers by Chemical bank at New York (USA) in 1969.

Important/Interesting Facts about ATM

  • Inventor of ATM :
    • John Shepherd Barron.
  • First ATM in India :
    • Installed by HSBC (Hongkong and Shanghai Banking Corporation) in 1987.
  • First ATM within the World :
    • It had been installed on 27 June 1967 at the Barclays Bank of London.
  • First Person to use ATM :
    • The famous comedy actor Reg Varney was the first person to withdraw cash from the ATM.
  • ATM Pin Number :
    • John Shepherd Barron thought to keep a 6 digits personal identification number for the ATM, but it had been not easy for his wife to remember a 6 digits pin so he decided to organize a 4 digits ATP personal identification number .
  • World's first floating ATM :
    • State bank of India (Kerala).
  • ATM without an Account :
    • In Romania, which may be a European country, one can withdraw money from an ATM without having a bank account.
  • Biometric ATM :
    • Biometric ATM is used in Brazil. Because the name suggests, the user is required to scan his or her fingers at these ATMs before withdrawing money.
  • World's Highest ATM :
    • It's installed in Nathu-La mainly for the army personals. Its height is 14,300 feet above water level and is operated by Union Bank of India.

ATM Machine and ATM

  • Let's see the image of ATM machine.
 Atm Machine

Atm Machine

  • Let’s see the image of ATM card.
 Atm Card

Atm Card

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