Home Banking ATM Banking What Is Atm Banking? Benefits of Atm Banking

What Is Atm Banking? Benefits of Atm Banking

Atm Banking

Atm Banking and its benefits

In today’s commercial era, no one wants to slow down for their routine banking transactions. For this, banks all over the nation provide their customers with ATM banking services for easy and safe transactions.

ATM or Automated Teller Machine is a specially designed computerized machine, installed by the banks, to help in easy and safe management of customers’ money. ATM banking plays a major role in facilitating banking services to the customers.

Automated teller machines, or ATMs, offer convenient self-service banking and help managing your money. When the bank isn’t open, you can use your debit card at an ATM to get cash, make deposits or check account balances. In order to operate an ATM, one needs to insert an ATM or ATM cum debit card and enter password/pin that one has created at the time of activation of the account.

ATM Banking in India

The first ATM machine in India was introduced by HSBC bank in 1987. According to a survey, the number of ATMs in India have increased from 21,110 in 2005-06 to 76,871 in 2010-11. ATMs are dispersed throughout the nation, allowing customers an easy and a convenient access to their funds. Anyone with a debit or credit card can access most ATMs. Using a machine operated by your bank is usually free, but accessing funds through a machine owned by some other bank may cost you a small fee.

Benefits of ATM banking

Convenient Money Management

One major benefit of ATM banking is convenience. It is the best way to avoid the never-ending queues at the banks. You can simply use your ATM card to withdraw cash, ANYTIME, ANYWHERE! For instance, you go out to a new restaurant assuming that credit card would be accepted there. But to your surprise, the restaurant takes only cash. What would you do? No worries! You are good to go if you are carrying your ATM card. You can simply withdraw cash from a nearby ATM machine. This means that you can simply travel anywhere, without cash. You can take care of your routine banking, easily and safely.

Value Added Services

Apart from the default function of dispensing cash, ATM banking now serves other functions as well. With the best technologies, ATMs have become multifunctional. Transferring funds between accounts, making payments and deposits, checking your account balance and so on, are some of the commonly know features of ATMs these days. Deposits made at ATMs are accepted 24/7 and processed the same business day, unlike the deposits made with teller.

Apart from this you can also use your ATM and ATM cum debit cards to perform all sorts of online transactions; from bill payments to online shopping. Not only this, you can also buy movie tickets, recharge your cell phones, request a new cheque book and much more, using your ATM cards. For instance, your friends come over without informing and there is nothing to eat. To add to this, you have no cash at home. Don’t panic! You can simply order food online and make easy payment with your ATM card, through secure ebanking options.

New Initiative

Some banks have now installed special ATM machines for visually challenged people. These machines operate on a voice guided system. Visually challenged customers can hear the computerized instructions using headphones, for transaction guidance.

Hence, ATMs have become an indispensable part of our commercial lives today, that one can find on every street corner, attached to every bank buildings and in every retail store.

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Parul Mahajan is a Post Graduate in Gender Studies from Ambedkar University, Delhi and also holds a Bachelor of Arts degree in English Literature from Daulat Ram College, Delhi University. She is the author of ““Warring Over Religion and Feminism”, a Masters level Dissertation. Parul has also interned with Vimochana, a Bangalore based women’s organization working on various women’s issues.


  1. ATMs have changed the entire banking system. Within 100 metres of area, atleast 1 ATM could be easily found. This has benefitted the customers who face urgencies to withdraw money anywhere, anytime. However, we are still not efficient in providing security to the users. There are several instances of loot happening at ATMs especially in absence of security. CCTVB cameras does help to track the culprit but the fear of accessing ATMs during odd times remain. Banks should take steps to ensure such instances are brought down to minimum.

  2. ATM’s have totally changes out way and system of spending money, withdrawing. That long ques for withdrawing money is are over now. No more waits for opening of banks or worrying about money withdrawal when needed. Its has changed our life to somewhat easier but a step further to loot. As mentioned by rkadakia the security of ATM’s at odd hours or in a low populated area should be increased. As loot of ATM (as a whole ) is also seen. killing of people in ATM’s or when getting out of ATM’s are also seen. Thus the security and surveillance system in the ATM’s is something one should think about .

    • I totally agree with you Tanupriya and I am grateful for your valuable insight. The cases of stealing of cash directly from the ATM machines have increased significantly over the last decade. Every now and then we hear a news related to the same. I personally feel that the security at the ATMs should be increased as keeping one guard per ATM is not of much use especially at late night hours.

  3. I totally agree. For someone who cannot manage money, ATM cards are the best way out. I usually tend to loose cash or use it up if i have cash at hand. So i prefer carrying my card around when i am out or just withdraw minimal cash depending on my need. And if i happen to need more in terms of emergency, ATM’s are available every 100 m these days. It doesnt matter if its a bank holiday. You can still avail your cash through ATM’s. Breakthrough in the banking technology!!

  4. ATM banking has indeed made our lives easier with no need to carry hard cash at all times. ATM cards are very handy and you can withdraw cash or directly pay your bills at any time without any hassle. However, ATM cards are often used for fraudulent activities by criminals to steal our money. SO one should be careful with sharing your PIN numbers, it is advisable not to share it with anyone. Recently, use of a malware named ‘Tyupkin’ has been reported to steal money from the ATM machines, this can be very dangerous for the customers. Banks need to seriously think about this and come up with a solution as soon as possible. Designing an anti-malware software and studing the modus operandi to track down the criminals can be a good option.

  5. As most of the people are using ATM and I hope among 70% of people don’t know the background of it most of they say it’s a money giving machine. My opinion is we must aware the things once we are getting advantage from anything and this proves it by giving a huge importance of ATM.

  6. Well, it seemed safer than banking online.
    But so many places don’t even require cash anymore… so what really is the advantage? Unless there is a high limit to the amount you can spend to pay by debit card in a shop.
    I know it is a good system, but is it really necessary anymore? I mean, most people have cards and use cards for everything these days… the world will be completely cashless soon.

  7. According to my knowledge the first ATM dates back from 1967. It is a long period of time since it entered in our lives and practically helped us on a daily basis. I have never knew life without ATM machines. I felicitate the initiative of developing such ATM for less fortunate than many of us – the elderly and especially the ones who cannot see properly. It was about time!

  8. I believe that nowadays everyone knows what an ATM is and how it works. An ATM can be found in your nearby location, wherever it is. I think that this article will become more useful if you could add the commission percentages that each bank takes if the ATM is used more than 5 times a month.

  9. Automated teller machine or any time money is the most indispensable machine in the banking sector. The best part is that it can easily be found at almost any places. But still our villages and towns remain inaccessible to it. More over these ATM’s can easily be looted and hacking is also becoming quite popular with it.

  10. I appreciate the benefits of ATM banking. I agree that ATM’s make banking a lot easier when you have simple requests, it can make your lines go fast and increase your business and profitability. My mom has been debating on investing in an ATM machine, I will be sure to share this information with her.


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