As the name suggests this is a modification/arrangement in the existing digital banking system that provides basic banking services like money deposit facility and money withdrawal facility both, 24 hours a day i.e. no lunch hours off or office hours off in the late night or early morning.
So, how does a banking institution achieve this target? In other words, how come a man and machine in the banking sector combined to achieve this motive of being customer-centric without disturbing their sleep or daily work schedule.
The working concept behind it
To arrive at the best solution that was meant to be the backbone behind 24 h Banking, banking sector did a detailed study about the services that were of utmost priority or received maximum customers at the counter during banking hours. It was identified that irrespective of rural/urban population money deposit and withdrawal was the essential services that required the maximum man hours to be dealt with successfully. So they stretched the working hours for these services and made them available to customers 24 hours a day and that too without any compromise on banking offs.
CDM: More precisely called Cash Deposit Machines were installed within the bank premises that made money deposit possible for customers anytime i.e. 24 hours be it the day or night. But yes one thing was to be made sure that the customers need to have an account with the same bank whose CDM he/she was using, unlike ATM that has interoperability with Global Banking Network, it was local to a bank who operates the CDM.
ATM: Automated Teller Machine it allowed money withdrawals 24*7*365 similar to the basic operating concept behind CDM. But yes it has something more to offer i.e. interoperability with Global Banking Network. In other words, bring a debit/credit card issued by national/foreign branch bank & money withdrawals are very much possible subject to terms and conditions that you agreed to while signing card issuer agreement.
These ATM’s also acted as a passbook for you, where you can check your mini-statements.
To conclude, 24-hour banking is a mixed effort of CDM and ATM working in collaboration with each other under the same roof i.e. one deposits the money in your account and another disperses money to you, all with just one bank-issued card in hand and yes no need for physical presence of any bank personnel.