Savings AccountSavings Account
Term DepositsTerm Deposits
Credit CardsCredit Cards
NRI AccountNRI Account
LoansLoans
Preferred BankingPreferred Banking
chat Chat

A Complete Guide to ATMs: Benefits, Purpose, and Tips

RBL Bank Jan 13, 2023

Automated Teller Machines (ATMs) – Explained

ATM, an electronic banking facility, has been transforming the banking industry by facilitating ease of accessibility. Anyone with a debit card or credit card can carry out simple financial transactions using an automated teller machine (ATM), without the assistance of a branch representative. ATMs are practical because they allow people to do quick self-service tasks, such as deposits, cash withdrawals, bill payments, and fund transfers between accounts.

Majorly, there are two types of terminals. One is an ATM machine and the other is a cash recycler machine. While ATM only dispenses cash, the Recycler is capable of dispensing as well as accepting cash. Cheques cannot be deposited in an ATM or a recycler machine. It requires a cheque deposit machine.

That said, there are also onsite and offsite ATMs. Onsite ATM is located at the branch premise, while the Offsite ATM is situated outside bank premises, in different locations, to ensure quick and easy basic banking services and immediate cash withdrawals.

Every month, a set number of free ATM transactions are offered by each institution. Banks charge fees and taxes for any additional transactions, including those for financial and non-financial services, once the limit is reached.

Around the world, there are more than 2.2 million ATMs in operation. In FY 2021, there were nearly 6 billion ATM transactions worth a total of 29 trillion Indian rupees in India, according to Statista Research Department. In FY 2026, the transaction value is anticipated to increase to above 46 trillion Indian rupees. This shows the growing usage of ATMs across India and globally.

Steps to use an ATM

You need a bank account and an ATM card linked to that account to use the ATM service. Banks typically issue debit cards that can be used for card swipe payments as well as ATM withdrawals. The withdrawal process from an ATM is also quick and simple. All you need to do is insert your debit or credit card into the machine, enter your PIN details, select the account, enter the amount, and confirm your transaction.

It’s also straightforward to deposit money into a cash recycler machine. Just insert your debit card, enter your PIN, choose the account, click on deposit, and input the amount you wish to deposit. Place your money safely in the designated slot and confirm your deposit.

Although almost all ATMs allow cash withdrawals, only those owned by your financial institution typically facilitate deposits. Your deposits won't be accepted at other ATMs.

Need to know note

It’s important to note that most banks have a daily withdrawal limit. In case you are planning to withdraw a larger amount, you can check with your bank and request to get your limit increased. Also, the withdrawal process in every bank/financial institution follows their own steps.

Aspects and Features of ATM

An ATM has many other uses and advantages in addition to making money transfers quick and simple. Among them are:

  • Withdrawing cash and checking balances are two of the Automated Teller Machine's most frequent uses. Holders of bank accounts may also transfer money or modify their PIN.  
  • Some modern ATMs also allow to open/withdraw a Fixed Deposit (FD), or to apply for a personal loan. Additionally, you can deposit cash, recharge your mobile device, pay insurance premiums, income tax, and utility bills. You might need to register for some of these services at the bank branch.
  • Automated Teller Machines provide 24×7 access anywhere.

Instant Money Transfer (IMT): Steps and Advantages

Instant Money Transfer (IMT) is a service offered by banks in India that allows people to transfer money instantly to another person's bank account using their mobile phone. The service was introduced in India in 2016 by the National Payments Corporation of India (NPCI), which is a non-profit organization responsible for operating and regulating the country's payment systems. The IMT service is based on the Unified Payments Interface (UPI), a payment platform that allows users to make electronic payments directly from their bank account to any recipient, without the need for any additional details or passwords. The service has become popular in India due to its convenience and ease of use, and is now offered by many banks in the country.

With the help of the IMT payment system, users can withdraw cash without using a card. This payment option is licensed and governed by The Reserve Bank of India. With the use of this digital payment system, an account holder can send money to a recipient by using nothing more than the recipient's mobile number as identification. Any bank ATM that is a part of the IMT group can be used by the recipient to withdraw the funds sent by the sender. IMT withdrawal capabilities are available at every RBL Bank ATM. With the nation's e-commerce and digital industry expanding quickly in recent years, there has been a significant increase in the use of electronic fund transfers.

In order to make an IMT (instant money transfer) transaction, you will need to follow these steps:

  • First, you will need to have a smartphone or other mobile device with internet access.

  • You will also need to have a bank account that is linked to your mobile device, and make sure that you have sufficient funds available in your account to complete the transaction.

  • Next, download and install a mobile banking app on your device. Most banks will have their own app that you can use for this purpose.

  • Once the app is installed, register for an IMT service through the app. This typically involves providing some personal information, such as your name and address, as well as verifying your identity through a one-time password (OTP) sent to your mobile device.

  • Once you are registered for the IMT service, you can begin making transactions. To do this, provide the recipient's mobile number and the amount of money you want to send. The recipient will then receive a notification on their mobile device, and can accept the transfer by entering a PIN or other security code.

  • Once the recipient has accepted the transfer, the funds will be transferred instantly from your bank account to theirs.

It's important to keep in mind that the specific steps for making an IMT transaction may vary depending on the bank and mobile app you are using, so it's a good idea to consult the app's user guide or contact your bank for more detailed instructions.

There are several advantages or benefits of using IMT (instant money transfer) transactions, including:

  • Convenience: IMT allows you to transfer money instantly and securely from your mobile device, without the need to visit a bank or ATM. You can transfer money quickly and easily, even when you are on the go.
  • Speed: IMT transactions are processed almost instantly, which means that the recipient can access the funds as soon as they accept the transfer. This is much faster than traditional bank transfers, which can take several days to complete.
  • Security: IMT transactions are generally very secure, as they use encryption and other security measures to protect your personal and financial information.
  • Ease of use: IMT is very easy to use, even for people who are not familiar with mobile banking. Most mobile banking apps are user-friendly and easy to navigate, so you can make a transfer in just a few simple steps.

How to handle failed ATM transactions

Report a failed transaction to your home bank if the money is debited from your account but the ATM does not dispense cash. The 24-hour customer service helpline for the bank should be your first point of call. The executive will lodge your complaint and give you a complaint tracking number after noting your problem and writing down your transaction reference number. The issue is then looked into.

If the first step didn't solve the problem, you should go to the closest branch and file a complaint there. You can also talk to the branch manager where you maintain your account. If none of this helps to resolve your problems, you should submit a written or online complaint to the RBI or the banking ombudsman. To get your question answered, you might have to wait 30 days from the date your complaint was filed.

RBL Bank cardholders can file a complaint by calling the customer service number  listed on the informational poster for the ATM.

Rising ATM frauds

The majority of ATM scams involve stealing PIN numbers and debit card information from unaware users. This fraud comes in a variety of forms, but they all depend on the cardholders' unknowing involvement. Typical ATM scams include:

  • Shoulder Surfing: This is the act of looking over someone else's shoulder when they are using a phone or an ATM to steal their personal information, such as their PIN or password.
  • Skimming: An instance of financial fraud when "skimmers" are used to steal credit or debit card information from cash withdrawal terminals is known as ATM skimming. ATM skimmers are fitted to ATM card readers to steal payment card information. They are made to resemble an actual component of the ATM.
  • Keyboard Jamming: To prevent a successful transaction and allow the consumer to leave the ATM to find assistance, the fraudster will jam crucial buttons on the ATM machine keyboard, such as the Cancel and Enter buttons.

6 ATM Safety Tips for Secure Transactions

You should always strive to keep your money safe. Stay safe at the ATM with these six crucial tips.

  • Don’t take assistance from strangers for your transaction
  • Don’t allow others to crowd around while transacting
  • Don’t mention your PIN number on your card
  • Never leave your card at the ATM/site
  • Change your ATM card PIN frequently to avoid misuse
  • Always cover the ATM PIN pad while you input the PIN number
  • Do not handover your debit card and share your ATM pin to anybody for performing an ATM transaction, not even your near and dear ones

Conclusion and Summary

As a result, you can execute various types of transactions using ATM cards safely and securely at your convenience. Maintaining the cards in excellent condition and refraining from disclosing private information like PINs, OTPs, or CVV to third parties are the only precautions you need to take. If you misplace your card, call your bank right away to block it and prevent any financial damage. Use an ATM safely and wisely.

RBL Bank has a network of 413 ATMs spread across 24 states. Learn more about how RBL Bank facilitates quick, easy, and safe transactions: https://www.rblbank.com/

Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

Tags

Reward-Points
Zero-Balance-Savings-Account
Digital-Savings-Account
CIBIL-Score
Credit-Score

A newsletter from RBL Bank

Stay Informed on the most impactful business and financial news with analysis from our team

Archives:

Home

Home
Login

Login
Payments

Payments
RBL Cares

RBL Cares
More

More
go-to-top

TOP