ATM

FACULTY :-MR. GAURAV AHUJA SIR

PRESENTED BY:- SHYAM NARAYAN &

GARVIT SINGHAL
PGDM - 1 “B”
 What is ATM?

 An ATM (Automated Teller Machine) is a

computerized system which individuals can use
to deposit money into their banking accounts,
withdraw money from their accounts, check
balances and transfer money from one account
to the other and now a days some banks provide
facility of mobile banking also.
 How does a cash machine transaction work?

 1. The customer inserts his bankcard in the ATM and

requests a withdrawal.
 2. The ATM dials a toll-free number to contact the
appropriate network such as Star® Plus® or Cirrus®,
which then contacts the customer's financial institution.
 3. The customer's funds are verified by his financial
institution.
 4. If funds are verified, the transaction is approved and
the customer receives cash from the ATM.
 5. The withdrawal amount and the surcharge are
debited from the customer's account.
 6. Both the surcharge and the withdrawal amount are
electronically deposited in the ATM owner's account.
Components & working of an
ATM

 ATMs are advanced computer systems

that contain sophisticated hardware and
software. All ATMs include a central
computer that processes transaction
information, a magnetic reader to
identify customers, a numerical keypad
that allows customers to enter personal
identification numbers, an electronic
display and a functional keypad or
touch screen.
 ATMs also include a standard software
operating system, such as RMX, OS/2 or
Microsoft Windows. The software
system controls the AMT's interaction
with the interbank networks and allows
the central computer to process
financial transactions.
Finally, ATMs contain a series of cash
cartridges (which can be removed and re-filled)
and a vault, which dispenses cash and accepts
deposited cash and checks. Vaults are
maintained and monitored by bank personnel
to ensure that deposited funds are credited to
customer accounts. It is usually not possible to
deposit funds in a non-native ATM.
ATM machines are connected to interbank networks, which are
computer networks connecting different banks around the
world. The interbank networks allow banks to electronically
share account information about customers. This enables
customers to use ATMs from different banks to access funds in
their accounts.
The two largest interbank networks are PLUS and Cirrus,
although several smaller networks operate as well. Before a
transaction can be processed, the ATM machines must receive
authorization from the customer's native bank, such as
confirmation that the customer has sufficient funds in his
account to permit cash withdrawal. Interbank networks allow
this authorization process to take place in seconds. Banks
charge non-native ATM users a fee to defray the cost of these
transactions.
Questions??