How to Withdraw Money from ATM ?

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Need to withdraw money from ATM? When it comes to the easiest way to withdraw cash, a small cabin with a machine inside it, called an Automated Teller Machine (ATM), can be the best solution.

The respective banks where we have our bank accounts provide us with an ATM cum debit card to withdraw cash easily from ATM.

What is an ATM?

An Automated Teller Machine is an electronic banking machine that allows a bank account holder to perform basic money transactions, like withdrawing cash, without any other human presence.

Apart from withdrawing cash, ATMs have begun to offer a plethora of useful services like –

1. Open or withdraw a fixed deposit;
2. Apply for loans;
3. Pay insurance premium;
4. Pay utility bills;
5. Deposit checks and cash, etc.

Apart from these services, depending on the location and bank, each ATM offers a combination of various services apart from the basic withdrawal of cash.

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While an ATM has become a familiar term, the usage of this machine is still a confusing task for many, especially in rural areas, where financial inclusion is still a new concept.

In this article, we have explained the basics of an ATM, followed by the simple procedure of how to withdraw money from an ATM so that one can be well aware of the withdrawal process.

Types of ATMs:

All ATMs are mainly of two types – on-site and off-site.

On-site ATMs are those which are available inside a bank’s compound, whereas an off-site ATM is located in other places, without the presence of a bank branch.

Other than this, ATMs are differentiated on the basis of their origin and purpose. These include –

1. White Label ATMs:

These are set up and operated by Non-Banking Financial Companies (NBFCs) and offer the most popular ATM services.

2. Yellow Label ATMs:

These ATMs are provided to assist people with e-commerce transactions.

3. Brown Label ATMs:

These ATMs are not directly owned by a financial institution but are leased to provide ATM facilities in various places.

4. Orange Label ATMs:

These ATMs are used for all transactions related to the trading of shares.

5. Pink Label ATMs:

These ATMs are made for use by women only.

6. Green Label ATMs:

These ATMs facilitate all transactions related to agriculture.

7. White Label ATMs:

These are set up and operated by Non-Banking Financial Companies (NBFCs) and offer the most popular ATM services.

8. Yellow Label ATMs:

These ATMs are provided to assist people with e-commerce transactions.

9. Brown Label ATMs:

These ATMs are not directly owned by a financial institution but are leased to provide ATM facilities in various places.

10. Orange Label ATMs:

These ATMs are used for all transactions related to the trading of shares.

11. Pink Label ATMs:

These ATMs are made for use by women only.

12. Green Label ATMs:

These ATMs facilitate all transactions related to agriculture.

What is the structure of an ATM Machine?

The ATM machine drawing below depicts the essential components that comprise the basic structure of an ATM machine.

1. Display screen – This atm screen guides the transaction of the user by visually showing them the functions of the machine, and helping them perform the task they need to.
2. Card Reader – This is an input device that identifies your bank account on the basis of the card you feed into the reader.
3. Cash Dispenser – This is the output device from where you can acquire the cash you have withdrawn through the machine.
4. Receipt Printer – This is the point from where you will get the receipt of your transaction, after it is complete.
5. Keypad – This is an input device that guides you through your transaction. Whatever you input through the keypad, will be reflected on the display screen.

How to withdraw money from an ATM?

Let us now look at the steps to withdraw money from an ATM.

Step 1: Insert ATM Card:

Insert your ATM Card in the ATM machine in the slot as marked in the above diagram.

Step 2: Select Language

Select your language from the language options appearing on the display screen (shown in the diagram above).

Step 3: Enter 4-Digit ATM Pin:

Use the Keypad(as marked in the diagram) to enter your 4 digit ATM Pin Number.

Do not ever share your ATM Pin with anyone. Ensure that nobody is watching you, while you enter the Pin.

Be careful while entering the Pin, as a wrong PIN may lead to the blockage of the ATM card.

Step 4: Select the type of Transaction:

On the ATM screen, you will be able to see different types of transaction options such as Deposit, Transfer, Withdrawal of Money, etc.

For cash withdrawal, you will have to select the Withdrawal Option.

Step 5: Select the Type of Account:

After selecting the cash withdrawal option, the screen will display different account types, select your account type.

As an individual banker, you should be choosing a savings account, as current accounts are a special type of accounts used by businesses.

Some ATMs offer you a choice to add a line of credit to your account. This can help a banker when they need excessive money in an emergency.

Step 6: Enter the withdrawal amount

Now, enter your withdrawal amount.

Make sure that you do not enter a withdrawal amount more than the balance in your account.

Now press enter.

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Step 7: Collect the Cash:

Now collect the cash from the lower slot of the machine (as shown in the picture above).

Step 8: Take a printed receipt , if needed:

After you collect the cash, you will get an option of whatever you want a printed receipt of the transaction. If you want a printed receipt, click yes and close the transaction.

Step 9: Another Transaction:

If you want to undertake another transaction then select that option.

Withdrawals from an ATM card debit amount from any existing bank account (either savings or current), so when you wish to withdraw, ensure that you have sufficient balance in the account.

Bottomline

When ATMs first came to India, people used to call them All Time Money or Any Time Money, and that is the biggest advantage of these machines. One is no more restricted to the bank’s working hours to do basic transactions like drawing cash or checking bank balance etc.

And the second biggest benefit is nowadays you can withdraw cash from any bank’s ATM, need not be restricted to your specific bank’s ATM.

After reading this article, I hope you are confident about how to withdraw money from ATMs and your next visit will be hassle-free. Ensure safe withdrawal and do remember to count your money and take the card out of the slot before leaving the ATM.

In order to know more visit our website StockEdge.com.

Happy Reading!

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