History of ATM Machines
Now that you know the full form of ATM let us travel back in time and go through its history. In India, ATMs were set up only years after the first ATM.
The First-Ever ATM
ATM Machines have been around for some time now. It was invented in 1960 by the American inventor Luther George Simjian. The ATM machine was then called the Bankograph as it allowed people to deposit cash and cheques. However, the first ATM Machine in the world was set up in 1967 at Enfield, London. This was by Barclays Bank.
India’s First-Ever ATM
The first ATM machine in India was set up in the year 1987 in Andheri East, Mumbai. The very famous HSBC bank established it. In India, the first ATM was designed by the Institute for Development and Research in Banking Technology. Following the first ATM, around 1500 ATMs were set up across India. The Swadhan, the first network of shared ATMs, was set up in 1997. The India Switch Company managed this network. If the bank did not own the ATM, there was a fee that users had to pay to withdraw money using the card. However, the Swadhan collapsed, and a network was created by a few banks together called CashTree. Similarly, other banks formed similar networks. This system got a bit chaotic, following which, India made a switch called the National Financial Switch, connecting all the ATMs across the country to form a single network.
The Working Of An ATM
For making an ATM work, one has to insert a specific card that their bank provides. Certain ATM machines allow cards to be swiped while the rest allow cards to be inserted. Every ATM machine provides instructions, making it user-friendly. These cards contain your information, including your account details and other security information in the form of a magnetic strip. Once you insert the card, you will have to type in the mentioned 4-digit unique PIN. After entering the correct PIN, the ATM will perform the necessary financial transactions successfully.
ATMs have made our lives much more manageable. It allows faster and more efficient cash withdrawals. Like this article, we have others to educate you about different valuable terms.
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