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- Lavleen Kaur Kapoor
There are several modern innovations of banking that have catered to all aspects of transactions and urgent need for money. This is an age when technology and innovations have brought about easy access of your own cash whenever and wherever you may need it.
ATM an automated teller machine, also known as a Cash Point OR cash machine or sometimes is a computerized telecommunication device that allows clients to access to financial transactions in a public space without the need for cashier, human clerk or bank teller.
One of the newest trends is the upsurge of ATM counters in India, especially in the metropolitan cities and towns. Most of ATM counters in Indian are placed not only right next to respective banks but also in almost every market place, residential colonies, streets and shopping malls, on road side of highways, anywhere frequented by large numbers of people.
More people are now moving towards using the automated teller machines (ATM) for their banking needs. An electronic banking outlet, which allows customers to complete their basic financial transactions related to their bank account without the aid of a branch representative. There are two primary types of automated teller machines, or ATMs. The basic units allow the customer to only withdraw cash and receive a report of the account's balance. The more complex machines will accept deposits, facilitate credit card payments and report account information.
Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Banks have been deploying ATMs to increase their reach. As at the end of December 2007, the number of ATMs deployed in India was 32,342.
ATMs are scattered throughout cities, allowing customers easier access to their bank accounts. Anyone with a debit or credit card will be able to access most ATMs. Using a machine operated by your bank is usually free, but accessing funds through a unit owned by a competing bank will usually incur a small fee.
ATM makes financial transactions convenient for users. However use of ATM not only facilitates the customers, but it also provides business to banks in following ways:
- Facilities-based global ATM network provides seamless connectivity
- Cut network, equipment and operations costs
- Maximize efficiency and usage — let e-mail and data backup share bandwidth
- Seamless connectivity makes it quick and easy to Add new user communities applications and locations
- Connect each of your offices at the most cost-effective rate
- Brings customers to your business so that they may access the ATM
- Provides ultimate convenience to your customers
- Saves your business from having to take checks
- Eliminate credit card charge backs
- Saves your business the percentage you would normally pay the bank on credit card transactions; it generates income with every transaction
- Attracts more customers, increases sales, and reduces bad check losses to zero
ATMs are now seen to be more than mere cash dispensing machines. Customers use ATMs to recharge their mobile phone pre-paid connections, pay their utility bills, even mutual fund transactions – making them at par with flexibility given in internet banking – only more secure. Of the alue-added services provided at ATMs, bill-payment is the most used service,followed by prepaid mobile talk-time recharges. However,still about one third of the respondents do not use any value added services at ATMs.
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Over the years many people have tried to lay claim to the title of “Inventor of the ATM”. Some believe that Luther George Simjian was the inventor because his idea came first. Some believe it was Don Wetzel; after all, he's got patents on display in the Museum of American History to prove it. Still others, including the Queen of England, say the inventor is John Shepherd-Barron.
In 1930’s Luther George Simjian invented not so successful version of an ATM. Initially he has developed an idea of creating a hole- in-the-wall machine that allows customers to make financial transactions, without entering the bank.John Shepherd-Barron had an idea in the 1960's for a 24/7 cash dispenser. According to his claim the world’s first ATM machine was installed outside North London in one of the branch of Barclays Bank in 1967.
As a Development engineer with Smiths Industries Ltd, James Goodfellow was given a project. It was to develop an automatic cash dispenser in 1965. Chubb Lock & Safe Co. was to provide the secure physical housing. They were also to develop a mechanical dispenser mechanism. Goodfellow designed the new system that consist of a machine readable encrypted card, and the machine that read it. To this he added a numerical keypad.
In 1968, Don Wetzel says he was the Vice President of Product Planning at Docutel. The company that developed automated baggage-handling equipment. He applied for a patent on an ATM machine.
John D. White claimed that he installed the first ATM at Rockville Center, LI for the then Chemical Bank in August 1973. His design was patented on May 9, 1973 for the Docutel Corporation and was filed on July 29, 1970. The machine was a "Credit Card Automatic Currency Dispenser.
In simple concise words we can say numerous inventors contributed to the evolution of ATM. The first magnetic stripe card ATM was installed at New York's Chemical Bank in 1969. To protect this first cash dispenser from harsh weather conditions they covered it with canopy. At that time bankers were not very excited about ATMs, since the cost of one machine was by about $8,000 higher annually than a human cashier. First ATMs were offline devices not connected by a computer network with client’s account with the bank.
In Indian, HSBC- the Hongkong and Shanghai Banking Corporation was the first bank to introduce the ATM concept in 1987. HSBC installed its first ATM machine at Andheri East in Mumbai for its Sahar Road Branch. Now, most of banks have their ATM outlets in India.
These days almost all leading banks have their ATM counters all over and have reached even in small towns and cities. ICICI Bank ATMs are one of the largest networks in the country. There are many other ATMs operate with international credit cards. They operate 24Hrs. For local currency the withdrawal limit is 25000rs a day maximum using ATM card.
Another facility offered by some of the banks in India is offering Debit Cards which can be used in several ATM counters in India, irrespective of the bank. Thus, cash can be withdrawn by using Debit cards like MasterCard in the ABN AMRO ATM counter. This has made it even more convenient for the international traveler, who is in need of cash in a foreign country.
With the advent of e-banking, the facilities offered at ATM counters are being availed even by people from the nearby villages, including farmers and small businessmen. This multi functional, round the clock access to the banking services has made the ATM counters in India one of the most convenient features of the banks in India.
ATM facilities are open to customers from any ATM counters in India of the same bank. Thus, gone are the days when a person had to carry large sum of money while traveling. Today, most of the banks have set a limit on the amount of money that can be withdrawn from the ATM machine. Today, most of the banks have ATM branches all across India, with some offering more facilities than others. Each bank has its own rules and regulations, terms and conditions that the customer must go through well.
To sum up, one of the most innovative features of modern banking is the availability of anytime and anywhere money that you need. There are various emergency situations when urgent monetary requirements are common. This has now become easier with modern banks establishing their ATM or Any Time Money machines almost in every neighborhood and region.
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