Operation & Types of ATM

Operation an types of ATM

At some point, we all have used ATM. It’s a very easy way to get the cash from the account, right? Today we will discuss the types of ATM that are available in our country. Before that let’s check out some fact about the atm.

  • ATM – Automated Teller Machine
  • The Network through which ATMs are connected is called as NFS
    (National Financial Switch )
  • It was designed, developed and deployed by the Institute for Development and Research in Banking Technology (IDRBT)
  • IDRBT’s main goal – To inter-connect the ATMs in the country and facilitate convenience in banking.
  • The IDRBT collaborated with Euronet Worldwide and Opus Software to build a platform to allow banks to connect their own switches to the NFS.
  • The NFS consisted of an inter-ATM switch and an e-commerce payment gateway.
  • It is run by the National Payments Corporation of India (NPCI).
  • The National Financial Switch was launched by the IDRBT on 27 August 2004, connecting the ATMs of three banks, Corporation Bank, Bank of Baroda and ICICI Bank.
  • The first ATM in India was set up in 1987 by HSBC in Mumbai As of April 2017, the NFS Network connects a total of 2,36,190 ATMs in India


ATM can be classified into different types depending on the various factor.

  • On the basis of Ownership and management
  • On the basis of connectivity
  • On the basis of Location

Ownership and Management (3 Types)

White Labelled ATM

1) ATM operated by Non-banks i.e. NBFC
2) 100 % FDI ( Foreign Direct Investment)
3) “TATA INDICASH” 1st White Labelled ATM in Thane
4) by TATA communication payment solution limited

Brown Labelled ATM

1) Owned by Bank but operated by the 3rd party

Bank owned ATM

1) No 3rd party is involved in this, Ownership and management is with the bank itself

Connectivity (3 Types)

Online ATM

1) These ATMs are connected to the bank’s database at all
times and provide real-time transactions online.
2) The withdrawal limits and account balances are constantly monitored by the bank.
3) Online ATMs are always watching out for you!

Offline ATM

1 ) These ATMs are not connected to the bank’s database hence they have a predefined withdrawal limit fixed
2 ) You can withdraw that amount irrespective of the balance in your account.

Stand-Alone ATM

1) Stand Alone ATMs are not connected with any ATM network- hence their Transactions are restricted to the ATM’s branch and link branches only.

Location (2 TYPES)

On-site ATM

The ATMs that are next to your Bank’s branch or in proper terms, they are the ATMs installed within a branch’s premises.

Off-site ATM

Off-site ATMs are the ones which are installed anywhere but within the branch premises. That is these are not installed next to the branch. So where are they installed?

Shopping Malls, shopping markets, airports, hospitals, business areas etc.

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