Automated Teller Machines or ATMs, as they are commonly known, have added tremendous value to the banking experience of customers. The tedious process of withdrawing or depositing cash by standing in a queue at a branch counter is now a thing of the past.

Apart from cash transactions, ATMs can be used for a host of other purposes. According to Rajeeb Chatterjee, senior vice president, ATM, NetBanking and Mobile Banking, HDFC Bank, “Customers can use the ATM for credit card payments, fund transfer, requesting account statements, cheque books, cash or cheque deposit, account enquiry or to take a mini statement. The machine can also be used to make utility bill payments, including mobile top-ups and insurance premium payments. The ATM is also capable of taking registration requests for banks’ various services.”

In recent years ATM usage has grown substantially in the country, more so after the Reserve Bank of India (RBI) laid down guidelines that allow customers of one bank to use the ATMs of other banks free of cost. Such usage has however been limited to a maximum use of five times in a month. According to industry sources, after RBI issued this guideline, the usage of ATMs of some banks has increased by almost 50 per cent.

The risk

Carrying out transactions through ATMs is safe as every transaction is validated through dual factor authentication — the ATM card that the customer has in physical possession and the ATM personal identification number (PIN) which only the customer knows.

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