What is an ATM?

By | March 15, 2011

An automated teller machine (ATM) is a machine which enables immediate cash withdrawal from a person’s bank account. This withdrawal requires an ATM card or ATM/debit card and the password to access the cash from the account. This removes the trouble of going to the bank were a person’s account is, to withdraw the cash from the account. These days withdrawing from the ATM’s of other banks are also possible which makes things easier. This has been a very relieving feature that helps customers who are travelling outstation.

Withdrawing from the ATM of the same bank is generally free of cost service provided by the bank. Withdrawal from the ATM of other banks may be charged by a small amount beyond a specified number of transactions. Generally 5 other bank ATM transactions per month are not charged beyond which there are charges. The maximum amount that can be withdrawn in one swipe is restricted to Rs. 10,000 in other bank ATM’s.

The loan accounts don’t have ATM cards. So if you have a personal or car loan taken, the related loan account won’t be having an ATM card. This means withdrawal of loan amount can’t be done the same way withdrawal is done from savings bank account and other accounts.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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