ATM types & RBI's circular on ATM Transactions.

 What is ATM(Automated Teller Machine)?

An Automated Teller Machine (ATM) is an electronic banking outlet or electronic telecommunications device that enab les users/customers to access their Bank Accounts and complete their financial transactions like cash withdrawal, cash deposits, transfer funds, and or obtaining their account information. These ATM transactions are performed with the help of a magnetically encoded plastic card (ATM Card or Debit Card) and a code number on it.

Services Offered by an ATM.
1. Cash withdrawal	8. Apply for personal loan
2. Checking account balance	9. Transfer cash
3. Open a fixed deposit	10. Pay your bills
4. Recharge your mobile	11. Book railway tickets
6. Deposit cash
5. Pay income tax
7. Pay insurance premium

 

Types of ATM transactions:

There are two types of ATM transactions  financial & non-financial transactions. Financial transactions The ATM transactions that are measurable in terms of money.  non-financial transactions – The ATM transactions that do not carry monetary value are non-financial transactions.

Financial Transaction	Non-Financial Transaction
Cash withdrawal	Balance inquiry
Cash deposit	Updating details
Fund transfer from a Bank	Change of pin
Account to other	Viewing mini statement
	Cheque book request

 

RBI rules for Banks with regards to free ATM transactions:

Usage of ATMs – Rationalisation of number of free Transactions.

The number of free same bank ATM transactions & other bank ATM transaction:

Banks must offer to its savings bank account holders a minimum number of free transactions at ATMs as under.

ATM Types

White level ATM

·         ATM machines set up, owned and operated by non-bank entities are called White Label ATMs (WLA).

·         WLA are authorised under the Payment & Settlement Systems Act, 2007, by RBI.

·          These White Label ATMs will not display logo of any particular bank. 

·          The first White Label ATM in India was set up by Tata Communication Payment Solution Limited, under the brand name of IndiCash. 

2. Brown Label ATM

·         The Automated Teller Machines (ATM) in which the hardware of ATM machine is owned by the service provider but the cash management and connectivity with the Banking network is provided by the Sponsor Bank. 

·          The Brown Label ATMs have come up as an alternative between Bank based ATMs & White label ATMs.

3. On-Site ATMs

ATMs that are located inside/besides/just outside the premises of Bank branches are called On-site ATMs.

4. Off-Site ATMs

The ATM machines that are located away from the Bank branches are Off-site ATMs.

5. Work-site ATMs

ATMs that are located inside the premises of any organisation is called Work-site ATMs.

6. Green Label ATMs

ATMs which are dedicated to promote agriculture banking transactions are called Green Label ATMs.

7. Pink Label ATMs

The ATMs that are dedicated to promote Banking Transactions by Women are Pink Label ATMs.

8. Mobile ATMs

ATMs that are not stationary and can relocate from one place to another are called Mobile ATMs. These are mostly installed on a vehicle. ICICI bank was the first bank in India to start a Mobile ATM facility.