What is admin balance and physical balance in ATM?

Admin balance in an ATM refers to the total amount of money that the bank or financial institution has allocated for the machine's operation, including cash for withdrawals and maintenance. Physical balance, on the other hand, is the actual amount of cash present in the ATM at any given time. Discrepancies can occur between these two balances due to transactions, errors, or theft, necessitating regular reconciliation to ensure accuracy and security.