Automated Teller Machine (ATM) – It is an electronic machine which is operated by customers and allows performing for financial transactions such as transfer funds, cash withdrawals, and deposits. It also used for obtaining account information at any time and without the help of bank staff. The ATMs in banks are installed at easily approachable locations or near the main gate of bank. The facility of ATM provides 24 hours customer service and dispenses currency note of specified values only. John Shepherd-Barron invented the automatic teller machine in 1960.
Advantages of ATM – There are several advantages of ATM which are discussed below
- Quick and prompt service is possible with less human errors.
- It is beneficial for travelers.
- It provides 24 hrs services without any staff and reduces the work load on bank staff.
- Withdraw cash at any time or in urgent without the help of bank.
- It ensures privacy to the customers.
- The withdrawal of rupees is faster than bank, no need of standing long lines.
- Maintenance cost is less as no bank staff is involved in transaction.
- It also provides receipt for details of withdrawal of money and balance in account.
Disadvantages of ATM – There are some disadvantages of ATM are as below
- It cannot provide services in rural region in our country whereas banks are available in the villages.
- Customers do not have proper knowledge of its operation so feel hesitate to use it.
- If ATM card is lost, no withdrawal of rupees. There is possibility of misusing and hack the ATM card.
- If dispense error in ATM machine, not received rupees but account will be debited.
- Personal touch of customers-employee relation is missing.
- Due to leakage of PIN, fraud can take place easily.
- Initial cost of hardware, software, and installation site is very high.
- Limitation of withdrawal of money.