ATM Full Form|Definition, How it works, Parts, Types, and Advantage

ATM Full Form, Types and Advantages

In this blog post, we will answer all your queries related to the full form of the ATM.

How Atm works, its type, advantages, parts, and other interesting facts and figures related to this.

Definition and Full Form of ATM

The full form of ATM is an “Automated Teller Machine” that is used to carry out financial transactions from a bank account.

These machines can withdraw and deposit money to your account. Atm machines are fully automatic and they don’t require any human cashier.

The first ATM was introduced by Chemical Bank, New York, USA (1969).

How does the ATM machine work?

In order to carry out a transaction from an ATM machine, a person is issued a card either debit or credit card from his bank.

The Atm card is supported by a four-digit pin that is used to authorize the transaction by the user.

That card is inserted in a slot at the ATM machine as shown in the above picture.

After inserting the ATM card a screen displays various options to the user that he needs to select as per his requirements.

The various option that is available in the ATM machine are as follows:-

  • Banking
  • Fund transfer
  • Cash Withdrawl
  • Balance Enquiry
  • New Pin Generation
  • Pin Change
  • Mini Statement
  • Bill payments
  • Mobile recharge

All the above-mentioned are a few examples of what you will see in the display of Atm Machine.

Also, read What are digital computers?

full form of atm
This is an example of how an ATM Card looks like.

IMP Note:- Never share your password with anyone including bank officials, over phone calls or by any other means of communication. It may lead to financial losses to you.

Parts of ATM Machine

Input Devices:

  • Card reader – it is that place where the user inserts his atm card or swipe it. It captures the bank details of the user which is stored in a magnetic stripe or nowadays in a chip.
  • Keypad – A keypad on an atm machine is required to fill PIN (Personal Identification Number) and the amount of money required to withdraw from Atm.

Output Devices:

  • Speaker – A speaker is also attached to atm which gives audio feedback of our commands given to the atm machine.
  • Display Screen – A display screen is just like a television screen which displays transaction sequence step by step as we proceed further.
  • Printer – A printer gives a print out of the transaction made at the atm machine along with requisite details.
  • Cash Dispenser – A cash dispenser is where our cash pop up when the transaction is completed by the user.

Types of ATM Machine

There are two types of ATM. Basic types that allow the user to withdraw cash and receive account balance details.

Another type of atm allows the user to deposit cash, credit payments, and transfer account balance, etc.

Advantages of ATM Machine

  • The Atm machine is accessible for 24 hours.
  • Atm provides convenience to bank customers, travelers almost every person in any field.
  • Atm machines had drastically reduced the burden of bank staff as well as customers.
  • We can recharge our mobile
  • User can deposit cash
  • Transfer Cash
  • Bill Payments


I hope after reading this article you will be able to answer all questions regarding the Full Form of ATM.

Most people nowadays use the ATM machine so it is really important to keep your account secure from any fraud.

SBI will be going to launch OTP based ATM cash withdrawal from 01 Jan 2020.

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