Automated Teller Machine (ATM)- Overview, History

An automated teller machine (ATM) or cashpoint (British English) is an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, or account information inquiries, at any time and without the need for direct interaction with bank staff.

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Automated Teller Machine (ATM):

Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.

White Label ATMs (WLAs):

ATMs set up, owned and operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under Payment & Settlement Systems Act, 2007 by the Reserve Bank of India.

What is the difference between ATM(Automated Teller Machine) and WLA (White Label ATM)?

In the White Label ATM scenario, logo displayed on ATM machine and in ATM premises pertains to the WLA Operator instead of a bank. However, for a customer, using WLA is just like using the ATM of other bank (bank other than card issuing bank). ii) Acceptance of cash deposits at the WLAs is not permitted at present.

What type of cards can be used at an ATM/WLA?

The ATM/ATM cum debit cards, credit cards and open prepaid cards (that permit cash withdrawal) issued by banks can be used at ATMs/ WLAs for various transactions.

What are the services/facilities available at ATMs/WLAs?

In addition to cash dispensing, ATMs/WLAs may offer many other services/facilities to bank customers. Some of these services include:
 Account Information
 Cash Deposit (Acceptance of deposits are not permitted at WLAs)
 Regular Bills Payment (not permitted at WLAs)
 Purchase of Re-load Vouchers for Mobiles (not permitted at WLAs)
 Mini/Short Statement
 PIN change
 Request for Cheque Book
 Personal Identification Number (PIN)

Personal Identification Number (PIN) is the numeric password which is separately mailed / handed over to the customer by the bank while issuing the card. Most banks
require the customers to change the PIN on the first use. Customer should not disclose PIN to anybody, including to bank officials. Customers should change the PIN at regular intervals.

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Are customers charged for any transaction at ATMs?

Ones, customers can be charged for transactions at ATMs over and above the mandated number of free transactions. In case a bank decides to levy charges, the customer can be charged a maximum of Rs. 20/- per transaction (plus service tax, if any) by
his/her bank.

The above does not apply to Basic Savings Bank Deposit Accounts (BSBDA) as withdrawals from BSBDA are subject to the conditions associated with such accounts.

What should be done if the card is lost/stolen?

The customer should contact the card issuing bank immediately on noticing the loss /
theft of the card and should request the bank to block the card.

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