Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.

Various types of ATMs

On Site ATM:
This type of Atm-is situated either within the branch premises or in very close proximity of the branch.
Offsite ATM:
Is not situated within the branch premises but is located at other places, such as malls, airports and petrol stations etc...
Worksite ATM:
It is located within the premises of an organisation and is generally meant only for the employees of the organisation.
White Label ATMs (WLAs):
ATMs set up, owned and operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under Payment & Settlement Systems Act, 2007 by the RBI. However in White Label ATMs acceptance of cash deposits at the WLAs is not permitted at present.

• But White label ATM doesn’t have such Bank logo, hence called White label ATMs.
• Any non-bank entity with a minimum net worth of Rs.100 crore, can apply for white label ATMs. (not just NBFC, any non-bank entity can apply.)
• Tata Communications Payment Solutions Limited =the first company to get RBI’s permission to open White label ATMs.
• They started their chain under brandname “Indicash”.
• Other White label= Muthoot Finance, Srei Infra., Vakrangee Software, Prizm Payments, AGS. More than 15 companies given such permission.
• ATMs will be setup in the rural and semi-urban areas. = more access to ATM= financial inclusion.

RBI requires White label-ATM companies to install machines in the ratio of
Two ATMs in (tier 3 to 6 place) : One ATM in (tier 1-2 place).

Brown Label ATM:

'Brown label' ATM are those Automated Teller Machines where hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM.ATM has logo of that bank (which has outsourced this work).They’ve no such compulsion to open a few ATMs in (tier 3 to tier 6) areas.

Free transactions at ATMs

With effect from November 01, 2014, a bank must offer to its savings bank account holders a minimum number of free transactions at ATMs, However It is not applicable to Basic Savings Bank Deposit Accounts (BSBDA) as withdrawals from BSBDA are subject to the conditions associated with such accounts.

Bank’s own ATMs at any location:Banks must offer their savings bank account holders a minimum of five free transactions (including both financial and non-financial) in a month.

Transactions at any other banks’ ATMs at Metro locations:In case of ATMs located in six metro locations, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad, banks must offer their savings bank account holders a minimum of three free transactions (including both financial and non-financial transactions) in a month.

Failed ATM/WLA transaction:

The customer should lodge a complaint with the card issuing bank at the earliest. This process is applicable even if the transaction was carried out at another bank’s/non-bank’s ATM.
 Banks have been mandated to resolve customer complaints by re-crediting the customer’s account within 7 working days from the date of complaint. However if the complaint raised but the customer is not resolved Banks have to pay compensation of Rs. 100/- per day for delays in re-crediting the amount beyond 7 working days from the date of receipt of complaint for failed ATM transactions.
The compensation has to be credited to the account of the customer without any claim being made by the customer. If the complaint is not lodged within 30 days of transaction, the customer is not entitled for any compensation for delay in resolving his / her complaint.

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Hongkong and Shanghai Banking Corporation(HSBC) introduced the ATM concept in India in 1987. The first ATM was set up in Andheri East, Mumbai.

ICICI is the first bank to provide mobile ATM.

First bank in india to launch talking ATMs for differently-able person- Union bank of india

First Aadhaar-based ATM launched by- DCB Bank

#ARCHANA