ATM Full Form: What is Automated Teller Machine?

The term ATM is quite general in the context of finance, especially banking. Generally, when one opens a new account with any bank, the bank issues an ATM card which can be used to take advantage of self-banking and carry out various financial transactions using machines (ATMs) maintained by banks in different regions. But the first question that comes to mind is that what is the full form of ATM?

In this article, we are discussing the essential topics about ATM, including the ATM full form, definition, brief history, functions, components used, etc.

What You Will Learn

What is the full form of ATM?

The meaning or full form of ATM is "Automated Teller Machine". It is one of the most useful devices in the context of banking. The automated teller machine has made banking easier for the customers and helped them to do various financial transactions without the need for direct interaction with the bank employees/staff.

ATM Full Form

The full form of ATM can be explained as:

A Automated
T Teller
M Machine

Let’s talk about what exactly ATM is:

What is ATM?

By definition, "the automated teller machine (ATM) refers to an electro-mechanical telecommunication device designed to enable customers of financial institutions to perform or process financial transactions."

Automated teller machines are somewhat of an example of a computer system. In most cases, ATMs are used for cash dispensing. However, depending on the type of ATM, several functions can be performed through an ATM. Cash is deposited in ATMs by banks from time to time. Anyone with an ATM card, such as a debit or credit card, and a secure PIN can withdraw cash through an ATM.

Customers can use the ATM themselves to perform various normal banking functions without visiting the respective bank branch. The automated teller machine is also known as a Cash Machine, ATM machine, Automated Banking Machine (ABM), Cash Dispenser, etc. Automated teller machines are used all over the world and there are more than 3 million units of ATMs around the world.

A Brief History of ATM

The ATM was initially used by a Barclays Bank branch in Enfield London street in June 1967. An Indian-born British inventor named John Adrian Shepherd-Barron is credited for his invention of the ATM. However, some sources cite records of cash dispenser machines in Japan in the mid-1960s.

The use of ATMs by various banks spread rapidly across the globe, gaining a foothold in almost every country. Interbank transaction systems were introduced around the 1970s to help customers use one bank's ATM card at another bank's ATM for financial transactions.

Functions of ATM

Depending on the type of ATM, it can be used to perform a lot of functions along with the basic usage of cash dispensing. Modern ATMs are multi-purpose and can be used to perform various banking services, such as:

Cash Deposit and Withdrawal
Fund/ Cash Transfer
Balance and Statement Enquiry (Mini Statement)
PIN Change
Recharges & Bill Payments
Mobile Number Update
Account Details
Pay taxes and insurance premiums
Open/Withdraw fixed deposits
Apply for personal loans, etc.

All the above functions may not be available in all ATMs. The functions provided by an ATM may differ from one ATM to another.

Types of ATM

The automatic teller machine is usually classified into two types:

One with basic functions, which only permits cash withdrawal to customers with other basic features like account balance status, PIN change, etc.

Another with advanced functions, which permits cash withdrawal as well as deposits. The advanced ATMs also allow money transfers, recharges, bill payments, and other banking features.

Components/Parts of ATM

Similar to a computer, ATM also takes inputs, processes instructions, and gives outputs. It also uses certain specific input and output devices to enable customers or users to deposit or withdraw money and perform other functions. Below, the basic input and output devices of ATM are discussed:

Input Devices of ATM

The following devices are used to communicate with the ATM to give inputs through various means or in an acceptable form:

Card Reader

The card reader recognizes the data stored on the ATM’s magnetic stripe or chip and helps the ATM to synchronize/access the relevant user’s account. As the user swipes or inserts the ATM card into the card reader slot, the user’s account details are accessed and matched to the bank’s servers. Based on further instructions by the user and successful PIN verification, the server allows the users to withdraw cash through the ATM.


The keypad enables users to input data requested by the ATM, such as choosing a function to perform, entering a cash withdrawal amount, typing a PIN or personal identification number, choosing whether a receipt is to be printed, and other on-screen tasks. The PIN is sent to the server in an encrypted form. Some ATMs come with touchscreen input support.

Screen Buttons

ATMs may also come with physical buttons next to the screen so that users can select the respective actions displayed on the screen. However, nowadays modern ATMs come with touchscreens and such ATMs do not require pressing of the screen buttons. Instead, we can just tap on the particular action to select it. Touchscreens used in ATMs are less sensitive than phones, and less versatile.

Deposit Slot

Not all ATMs have a deposit slot. However, most modern ATMs are deposit-enabled and allow users to put cash, or cheques, into their bank accounts. The user can insert the card into the card reader, choose to make a deposit, enter the amount, and use the deposit slot to deposit the respective amount in cash or via cheque. However, it should be ensured by the bank whether they support deposits or not.

Output Devices of ATM

The following devices are used to communicate with the ATM in order to obtain output in an acceptable or understandable form:

Display Screen

The display screen helps the users to interact with the ATM and understand necessary steps or follow instructions for the related functions, such as cash withdrawal, balance inquiry, PIN change, etc. It displays all the information including transaction details. Screens can be CRT, LCD, or LED, supporting either a touchscreen type or a normal display type.


Speakers can be a part of most ATMs to provide audio feedback when a key is pressed or when an action needs to be performed by the user. Specifically, the speaker gives instructions on how to use the ATM to perform specific functions. Speakers are mainly helpful for those who cannot see.

Cash Dispenser

A cash dispenser is one of the essential parts of an ATM as it helps the users to take out cash from their accounts. High precision sensors are used in ATMs to help the cash dispensers to dispense the appropriate amount of cash as demanded by the user.

Receipt Printer

The primary function of a receipt printer is to print a small copy of the final transaction details on paper. It can help users to view transaction details like date and time, withdrawal amount, balance and past few transactions, etc. Whether to take a receipt or not is decided by the user.

ATM Full Form: ATM Card and Machine

How does ATM work?

Insert the ATM card into the machine using the card input slot. Some ATMs allow card swapping, while others hold the card until the transaction is completed.

Enter a secure PIN to give final authorization to access the account.

Choose a function to perform using the on-screen instructions and buttons.

If cash withdrawal is requested, take out cash from the cash dispenser.

If asked for a transaction receipt, take out the print receipt from the receipt printer.

Press Cancel (multiple times if required) until the Home screen or default screen appears.

Some Interesting Facts about ATM

Renowned English comedian Reg Varney is credited with being the first person to use an ATM. He used the ATM when Barclays Bank inaugurated the first ATM at its Enfield Town branch in north London.

The first ATM in India was established in 1987 by HSBC (Hong Kong and Shanghai Banking Corporation) in Mumbai.

In countries like Brazil, people can use ATMs with biometric authentication by scanning their fingerprints to make transactions.

In India, many banks allow people to transact at ATMs using a bank application with a secure PIN for specific transactions. People don't need to carry ATM cards.

Other Forms of ATM

There are some other forms of the term ATM depending on the field, such as:

Category/ Field Full-Form
Travel Air Traffic Management
Telecom Asynchronous Transfer Mode
Social Media/ Chat At The Moment
Defense Anti-Tactical Missile
Job-Profile Area Training Manager
Other (fun) Any Time Money


ATM (stands for Automated Teller Machine) refers to a machine that helps users to take advantage of self-banking. It is highly accurate and is available for use 24X7. It has reduced the workload of bank employees to the maximum extent. Fortunately, people do not need to carry cash while traveling abroad as ATMs are available all over the world.

Weekly Hits

Latest Tutorial

© 2024 TutorialsMate. Designed by TutorialsMate