ATM stands for Automated Teller Machine. The ATM has served its purpose for billions of people worldwide. Be it a function or an emergency, a nearby ATM has come to help in good and challenging times.
Today there are ATMs of every bank on every street worldwide. Isn’t it fascinating! The fascination wouldn’t end if you figured out that all ATMs are not the same. Surprised? Yes, there are different types of ATMs available in the market, and each one has some unique features.
In this blog, we will understand the various types of ATMs.
What is an ATM?
ATM is an Automated Teller Machine. It is an electronic device provided by the banks. The ATM mimics the bank in its absence.
It allows the customers to use it for financial functions like cash withdrawal, cash deposit, fund transfer, account information, regular bill payment, balance inquiry, mini statement, and many more.
What are the types of ATMs?
It is so weird that we have used ATMs innumerable times and have never wondered whether it has different categories according to their features and use.
Its time to enlighten ourselves with the truth about the types of ATMs and according to the operations it performs, it is classified into seven different types; they are:
• White label ATM.
• White label ATMs are the ones that are provided by non-banking entities.
• They can be an individual or a corporation.
• The only necessity is that they must have the approval of the RBI.
• These ATMs do not belong to any bank, and customers of every bank are allowed to make transactions from these ATMs.
• They do not have a logo of any specific bank.
• Brown Label ATM.
• The Brown Label ATMs are a cost-effective solution for banks.
• They are based on a cost-sharing philosophy.
• A service provider provides the ATM, and the sponsor bank provides the cash management and network connectivity to the machine.
• These ATMs have a logo of the sponsored bank to attract customers.
• The banks are outsourcing the ATM from a third-party service provider.
• Pink Label ATM.
• As the name suggests, these are the ATMs provided for women.
• It is a purposeful approach where the idea is to spare women from standing in long queues outside the ATM.
• Green label ATM.
• The Green Label ATMs are provided for Agricultural Transactions.
• Orange label ATM.
• The Orange label ATMs are provided for the share transactions.
• Yellow label ATM.
• The Yellow Label ATMs are provided for online purchases.
• It is built solely for e-commerce purposes.
• Biometric ATM.
• These ATMs have extra security like fingerprint scanning or eye scanning to avoid thefts.
• They provide an extra line of security to their customers by using biometrics at the ATMs.
All the ATMs serve the same purpose of dispensing cash at the time of need for millions and billions of people worldwide. The beauty of an ATM is that it can save so much time for a person who is urgent about some mishap in their life.