The term ATM stands for Automated Teller machine. It is a machine installed by a bank for providing banking service for 24 hours. The slogan of all the banks nowadays is anytime and anywhere banking.
The ATM’s have revolutionised the banking industry. The technological growth has made banking very easy and convenient. A customer can carry out his banking transaction through the ATMs at any time and from any of the ATM centres.
The ATMs have a two fold advantage. Firstly, the customers can walk into the ATM centres at any time to carry on their transactions such as withdrawing money, depositing money, collect a statement of account, place a cheque book requisition etc. Secondly, the number of customers visiting the bank will reduce by an estimated 80% which will result in huge savings in the employee – related costs for the bank. The cost incurred in servicing a customer through the ATM is 1/3rd of the cost incurred if the same customer were to be served personally through the branches of the bank.