Recently researches on Automated Teller Machine (ATM) and its security enhancements have been gaining rapid impetus. So far, research has aimed to ensure reliable and secure performance of an ATM in the modern banking system. However, developments of new features over the existing system can be expensive. This paper describes the development and implementation of a low cost ATM with currency exchange capability named as Hybrid ATM (H-ATM) which has currency exchanging facility integrated with typical money transaction facility. This proposed H-ATM, capable of executing standard operations but involves a more advanced system where it includes computer as well as microcontroller embedded system. This advanced system has shown considerable improvements in performance, troubleshooting and implementation with higher level of security and consistency. Finally, the low cost of implementing this machine signifies the room for potential improvements with respect to the existing ATM system.