Advantages and disadvantages of ATM (Automated Teller Machine)

Advantages of ATM

• Withdrawing money.
• Checking how much money is remaining in the account.
• Round the Clock Services: ATM provides banking services to its customers round the clock, 24 hours a day, 7 days a week and 365 days a year.
• Access to bank from any part of the world: Essential banking services like deposits, withdrawals transfer of funds, etc can be accessed by customers from any part of the world.
• Expansion of Services to any corner of the world: Of the Banks can expand their services to any corner of the world by providing electronic access to its customers.
• For shopping Purpose: Now a day’s almost every shopping mall, restaurant and other organizations are accepting debit or credit card payments.

Disadvantages of ATM

• If problem with credit card you cannot withdraw your money.
• If someone watches or hacks an atm machine your details may be taken if you forget your PIN number you cannot use the card.
• Cannot be provided in rural areas: In a country like India, where banks are having large number of rural and non-computerized branches, ATM services cannot be provided.
• Limitation of cash withdrawals: Again there is a limitation of cash withdrawals from ATM. For example, many banks do not permit withdrawal of more than 25,000 at a time.
• Cash deposit facility is not safe: Similarly cash deposit facility is restricted and not safe as dropping of envelope and ATM is not advisable.
• Possibility of misusing ATM card: ATM card, if misplaced, lost or stolen, may be misused. There are number of such reported incidences now a day.
• Loss of personal touch with the Banks: Last but not the least; customers lose personal touch with their bankers.

Automated Teller Machine