ATM cash withdrawal is a service provided by banks which enables you to withdraw money without having to visit any branch of a bank. Well, you can do a lot more than just withdraw money from an ATM. With the help of an ATM you can carry out a select few banking operations. ATM stands for Automated Teller Machine which was introduced to help individuals carry out certain basic banking transactions without having to visit a bank branch or take the help of any banking representative. Any individual with a credit card or a debit can access an ATM machine and utilize its services.
The first ATM in India is believed to have initiated in the year 1987 and it followed the footsteps of some of the major technological advancements. By the year 1999, there were merely 800 working ATMs all over the country. It saw an exponential growth over the next four years and by the year 2003 there were about 10000 ATMs all over the country. From a mere Rs.1900 crores disbursed in the year 1999, the amount shot up to an incredible Rs.57000 crores in 2003. This was the beginning of advancement of the ATM and resulted in more features being added into them.
ATM was slowly and steadily redefining the way we thought about banks and their usages, when they kept adding more and more features. But at its core ATM cash ensured you never ran out of money even on weekends and holidays when the banks were non-operational.
Features and Services of ATM
There are no second thoughts as to the usefulness of ATM cash and it surely is one of the most commonly used features of an Automated Teller Machine. The following is a list of all the other features and facilities that come with an ATM. The features outlined here are amongst some of the most commonly offered features. ATM of your bank might or might not provide all of these features, but it would certainly cover a lot of them.
- Cash Withdrawal
The ATM is not bound by any specific working hours. It was built to dispense cash 24/7 all around the year and that is exactly what this option lets you do. There are certain limits that ATMs adhere to while dispensing cash to individuals. These limits are specific to banks and the different types of account they offer. For an example, the maximum cash withdrawal limit for the most basic account type for one bank could be Rs.25000 per day whereas another bank could offer a daily limit of Rs.40000 for its basic account. The limit could go up substantially depending on the type of accounts again.
- Quick Cash
This feature in the ATM has predefined amounts when it comes to cash withdrawals. Some ATMs offer a Quick Cash option, which helps to withdraw cash when you are in a rush. Once you get into this option, you can choose any one of the amounts displayed on the screen. This allows you to skip a couple of options and thus save time if are in a hurry and want to withdraw cash.
- Enquiry of Balance
Not sure if your employer has deposited the salary? Or that friend who took a small loan has finally repaid it or not? Or the money that your sibling said he/she has transferred has finally been credited to your account or not? With the help of balance enquiry option, you can check your balance on the go without having to update your passbook.
- Change of PIN
As soon as you receive a new ATM card, the first and foremost thing one should get into is PIN Change. You can change the PIN of your ATM card using this option. It is recommended to update or change your PIN on a regular basis. This keeps you safe in the unfortunate event of you losing your ATM card.
- Account Statement
This feature is usually known as mini statement in most of the banks. You can use this option when you want to know your account balance, but at the same time want to see the past few transactions as well. The number of transactions that the slip displays changes from bank to bank. Some of them display the past 5 transactions while other banks show the past 10 transactions.
- Fund Transfer
This is another great feature that comes in extremely handy at times. Customers who want to transfer funds to others having an account can use this facility. This allows them to remit the specified amount from their account and credit the same to the account of their loved ones. This feature also works on a daily limit basis and the same varies with different banks. So, some banks would let you transfer up to Rs.25000 using this feature while others will let you transfer up to Rs.40000.
- Request for cheque book
For customers who use cheque books a lot, running out of cheque book is a prominent problem and they have to visit the branch every time for requesting a new one. With the help of this feature, customers can place a request for new cheque books from ATM counters, without having to stand in queues.
- Top up your mobile phone balance
People, who like to talk a lot, usually end up recharging their account balances more often. That invariably means transacting with a local vendor. You can take part in such transactions right from an ATM and skip out the hassles. This feature ensures you are always connected with your loved ones.
- Credit Card Payment
Few of the banks allow you to pay up your credit card dues right from an ATM. This can be extremely handy when you do not have access to net banking or are far away from a branch and the due date is closing in fast. Simply visit an ATM and pay the dues and avoid any fines.
- Utility Bills
Banks in most of the metro cities allow their customers with the ability to pay their utility bills using ATM kiosks. Utility bills include payment of mobile phone payments, electricity bills and at a few places even payment of bills for gas cylinders.
The above are some of the most standard features that you will come across in an ATM vending machine. However, banks have evolved since the ATMs were introduced. Apart from ATM cash withdrawal, which is one of the core functionalities of the ATM, the following are some of the other unique and interesting features that some of the banks offer. These features make ATMs much more potent and better alternative when it comes to few of the most repetitive functions of a bank.
- Income Tax payments
Paying income tax can be very time consuming and resource consuming as well. Few of the banks acknowledge this fact and have added a feature which allows you to pay various types of taxes such as self-assessment tax, advance tax or the tax that you owe to the government post regular assessment. In order to use this facility, you will have to register with your bank first.
- Fixed Deposit
Some ATMs allow their customers to place a request for opening a new Fixed Deposit. Customers can enjoy the convenience of investing their money without ever having to walk into a branch. The facility provides all the features a standard Fixed Deposit does, such as duration, amount, what to do with the interest, etc.
- Insurance Premium Payments
You can now pay the premiums for your insurance right from an ATM. Of course, the feature is not available at all ATMs or for all insurers. However, some of the major insurers have stepped up and allowed their customers to use this additional expediency. You need to enter some basic details such as policy number, premium amount, phone number and you are good to go with the payments.
- Book tickets
Some public-sector banks are at par when it comes to innovative features related to ATMs. Some of the banks allow their customers to book railway tickets from select ATM kiosks near railway stations. The feature is available for long distance travel as of now.
Charges
There have been some modifications to ATM cash withdrawals recently. These vary a lot depending on your location and the bank you are dealing with. Some banks allow only five free ATM cash transactions from their own ATMs and three or five (three for metros and five for other places) transactions from other bank ATMs. Any transaction or withdrawals post these limits would attract charges of Rs.20 (excluding GST) for financial transactions and Rs.8-Rs.10 (excluding GST) for non-financial transactions (varies from one bank to another). Some specific account types might not attract any charges on ATM cash withdrawals or transactions at all.