Automated teller machines are well known devices which are normally used by individuals so that they can perform their personal and business financial transactions and/or banking functions. Because of ATM's availability and its user friendliness it has become very popular among general public. Now a day's ATM has become insecure so to add a second layer of security we are using Face Recognition Technology using PCA Algorithm and we are going to eradicate the problem of using ATM card by replacing ATM card with 3G SIM card. By implementing this new technology we can progress all the transaction from different banks in a single GSM card which has a high level authentication of Face Recognition. The Principal Component Analysis is one of the most successful techniques that have been used for image recognition and compression. PCA is used for face recognition to express the large 1-D vector of pixels constructed from 2-D facial image into the compact principal components of the feature space called as eigenspace projection. The calculation of Eigenspace is done by identifying the eigenvectors of the covariance matrix derived from a set of facial images (vectors). This technology presents a cutting edge solution for face detection and recognition in ATM machines. Face recognition is the second level of security for user authentication. In future enhancement Face recognition can be done using 3D camera which includes the skull image of the user; it adds an additional layer of security. © Research India Publications.