Mar 18, 2012

ATM Banking Essay For Class 2,3,4,5 | School Essay

Total 565 Words
Introduction -ATM stands for Automated Teller Machine. ATM is a machine at a bank branch or other location which enables a customer to perform basic banking activities. It does not need a bank employee and is allowed for round the clock.

History: It is difficult to say about its inventer.In USA Luther George Simjian invented cash dispensing machine and he patented it on 30 June 1960. In Japan the device was first used in 1966. The first ATM was installed by Barclays Bank in Enfield town in North London on 27 June 1967. In USA the first ATM was installed by Chemical Bank in Newyork at its Rockville Centre. In India first ATM was installed by City Bank in Bangalore in the late 1980s.

Explanation: In India the private bank like ICICI BANK and HDFC BANK took the challenge to implement ATM concept. These two banks are the pioneer of conveying the concept in the public. After that nationalise bank started to follow ATM banking. And the largest bank STATE BANK OF INDIA at this time has biggest numbers of ATM in India. At early stages in India ATM were attached with specific branch but later it came out of this conservative approach. Reserve Bank O India encouraged banks to install ATM machines to propagate banking habits.

Benefit: ATMs has completely changed the banking concept and made today’s life much more comfortable. Now we do not need to remain in the long queue for money withdrawal. Also we are not confined for day's banking hours from 10 am to 5 pm. Now we are free to operate it anytime anyplace. Not only money withdrawal but many more options are available at ATM like balance enquiry, money transfer, mini transaction checking etc.

Security Measures: The user must be more careful to handle his banking account with ATM card. The security point is a must for ATM user. Never show the ATM card number to anyone who is not authentic for you. Do not show CVVC (CVV) number to others. Do not reveal your card expiry, your date of birth on internet unnecerily unless it is branded website. Do not share PIN code of the card. Keep changing PIN regularly (after 15 days or after one month). Memorise three or five PIN and rotate it then it will be very easy to change PIN. Do not leave counter after operating the ATM unless it is refreshed that means start blinking. It is better to prss cancel/clear buttons after operation.

Process of ATM Banking: ATM, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information, such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN). An ATM is typically made up of the following devices: A CPU to control the user interface and transaction devices, a Chip card to identify the customer, A PIN pad, a Secure cryptoprocessor, a display, function keys to select the various aspects of the transaction,a Record Printer to provide the customer with a record of their transaction, Vault to store the parts of the machinery requiring restricted access, Housing for aesthetics and to attach signage to. With the help of these devices it reads and identifies the customer and delivers the money.


  1. Replies
    1. The essay is very long therfore it is not given. However we will add conclusion in the comment box.

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