Everything you need to know about ATM
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An ATM (Automatic Teller Machine) is a machine which all of us use regularly. It is a convenient way to withdraw cash from your savings account at any point of the day (or night).
ATMs are now available in every nook and corner of the country. Banks are also opening new ATMs to make it easy for most people to access banking services.
An ATM is a machine which allows you to withdraw money from your savings account. In a few ATMs, you can also deposit cash into your bank account as well. It is beneficial during emergencies as people can easily withdraw money for ATMs and use it.
Do you know when did ATM arrive in India?
The first ATM in India was installed Hongkong and Shanghai Banking Corporation (HSBC) in Andheri East, Mumbai in the year 1987.
Using an ATM card is extremely easy. In case, your parents recently made a bank account, and you have a brand new ATM card with your name, here’s how you can withdraw money from your ATM.
The benefits of an ATM are that it is incredibly advantageous as it works 24 hours a day. Additionally, if you find yourself abroad with an urgent need for cash, you can avail ATM services as well. However, there will be a standard charge applicable to using an ATM card abroad. Furthermore, if you are in India itself and you have Bank A’s ATM card, you can still use other bank’s ATMs. Also, an ATM is less likely to make mistakes than a bank teller, as using a machine reduces human error.
In August 2014, the Reserve Bank of India came out with a policy regarding the number of ATM transactions that will be offered by banks free of charge. In this case, the banks were told to provide a certain amount of transactions free of cost every month.
The charges of withdrawing cash from ATM varies from bank to bank, and it can also vary on the type of savings account.
Customers can withdraw up to 5 times from their bank ATM and three times from other bank ATMs. However, it is to be noted that free three transactions are applicable only in the metro cities, which includes Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai. For all other cities and towns, customers can withdraw up to 5 times from other banks ATM without fee in a month.
The fee is not applicable for holders of basic savings account.
Also, ICICI Bank does not any levy any ATM transaction charges on some of its savings accounts such as Freedom, Privilege Senior Citizens and Silver Savings Accounts.
There are dangers assosicated with ATMs as well. Robbers lurk around ATMs in remote locations and poorly lit areas. Furthermore, thieves will also find ways to copy the PIN of your card or tamper with the ATM. This act is known as ATM skimming, where thieves install hidden cameras or fake card readers which note down the number of the card. There is also a threat that thieves may create dummy ATM cards after stealing information from original cards and then withdraw cash from it.
To conclude, an ATM is a beneficial invention. But it must be used with caution. When using an ATM, an individual must be aware of their surroundings and report suspicious behaviour. Additionally, an individual should always cover the keypad when they are inserting the PIN; this prevents the number being copied by other cameras. Thus everyone who uses an ATM must be vigilant when using it.
Forgot your ATM PIN? Here’s how you can reset your ATM PIN
Tags: savings account, atm