Now, do more than borrow cash at ATMs

Automated teller machines, or ATMs, seem to be getting ever more powerful as banks push the branchless-banking concept. Gone are the days when an ATM only doled out cash. Today, you could accomplish a myriad value-added transactions on the machine —- utility payments, prepaid mobile recharge, credit card payments and tax payments, to name some.

However, not all users seem to be aware of the changes at this point. Here’s what all you can expect the machines to do today.Payment of credit card dues

You can pay your credit card bill through the ATM, using your debit card. This facility is useful only if both your credit and debit cards are of the same bank. On typing the amount you wish to pay, the fund will be immediately transferred to your credit card account and you will also get a receipt. Compare this with an over-the-counter transaction, which would require a fee. For example, HDFC bank charges Rs50 and ICICI Bank Rs100 if you opt to pay over the counter.

Payment of utility billsYou can pay electricity bills, telephone bills and insurance premiums through your ATM, though some banks also have tie-ups with BSNL/MTNL, gas agencies and other agencies and offer you discounts ranging from 0.5% to 1% of the bill amount paid through their ATMs. The facility is available only in select cities at present, but is soon expected all over India.

Tax payment You can register your debit card with your bank’s website for ATM payment of tax. This will also validate your permanent account number and your tax deduction account number, provided to tax payers with National Securities Depositories. Once the registration is made, you can go to the ATM. You will be asked for the amount to be paid along with item-wise details if there is any other amount you may want to include. The amount you have chosen will be debited from your account and the ATM will generate a receipt with a special number (SIN). You can submit the SIN number on the bank’s website after 24 hours and download the challan. The SIN has to be quoted when you file your tax return online later.

Payment of tution/ application feesMany educational institutions allow you to pay their application or tuition fee through select bank ATMs. You will have to register with the ATM first, which is a one-time procedure. Ensure that you have collected the transaction slip after transferring the money. At present only the leading educational institutions are offering such a facility.

Railway tickets/ air ticketsThis can be done only if your bank’s ATM is has this option or has a tie up with a particular airline company or Railway. If it has, you just can walk into the ATM and purchase your tickets. At present, SBI, PNB and Bank of Baroda and Karur Vysya Bank offer this facility.

Mobile rechargeYou don’t need to locate a retailer to buy a recharge card. Just walk into an ATM, type in your mobile number and recharge your mobile with the amount you wish. You will receive an SMS confirming the activation.

Fund transferBanks allow you to transfer money between accounts linked to your ATM/debit card. You can link more than 10 accounts to a card. ICICI Bank allows up to Rs1 lakh as the maximum amount of money transfer in a day. The limits vary from bank to bank.

Opening an FD You can open an FD without visiting a branch or writing a cheque. ICICI Bank allows you to open an FD for a maximum of 990 days, through their ATM. You will get an FD receipt within seven working days.

Making donationsCertain banks like SBI allow you to donate funds to charity or temple trusts through their ATMs. A receipt will be received for the transaction, which can be used for filing tax certificates.

Loan account enquiriesLoan account holders can check their outstanding balance, request for IT certificates etc and also make part payments through ATMs.

Getting the currencies you wantCustomers can choose the denominations they want, i.e. the type and number of currencies. At present, only IndusInd Bank offers this facility.

The services offered vary from bank to bank, and also depending on the machine. Soon, ATMs are expected to include services like hotel bookings, travel, entertainment, social networking and downloading. An international pay service and money conversion service, which is common in the West, will also be made possible in India soon. Register your mobile number with your bank to receive regular updates on service.

— The writer is CEO, BankBazaar.com