CHAPTER : 1

I.

OVERVIEW

A bank is a financial institution and a financial intermediary that accepts deposits and converts those deposits into lending activities, either directly or through capital markets. Banking is a business which deals with money & credit. The primary function of banking is to accepting deposits and to lending money. Bank deposit can be divided in to four types i.e. Saving Deposit, current Deposit, Recurring Deposit & Fixed deposit and lends though corporate lending & retail lending. Banking sector plays a significant role in development of Indian economy. So banks need to optionally influence technology to increase penetration, improve their productivity and efficiency, deliver cost-effective products and services, provide faster, efficient and convenient customer service and thereby, contribute to the overall growth and development of the country. Technology enables increased diffusion of the banking system, increases cost effectiveness and makes small value transactions possible. Besides making banking products and services affordable and accessible, its simultaneously ensures sustainability and profitability of providers.. Technology enhances choices, creates new markets and improves productivity and efficiency. Effective use of technology has a multiplier effect on growth and development. ATM i.e. Automated Teller Machine is also an outcome of this technological development only. ATM systems throughout the world are entering a period of major transition and change. New ATM concepts have to be examined.

II.

CONTEXT

In India, HSBC (HONGKONG and SHANGHAI BANKING CORPORATION) was the first bank who introduced the concept of ATM in the year 1987. Now a days, almost every commercial bank is providing ATM facility to its customers. The first bank to cross 1000 marks in installing ATMs in India is ICICI. SBI is following the concept of ATMs in Quantity but private sectors banks have taken the lead. ICICI, UTI, HDFC and IDBI count more than 50% of the total ATMs in India. Public sector banks are also considering the installation of ATMs seriously for Indian markets. They are either setting up their own ATM centers or entering into tie-ups with other banks. The corporation bank has the second largest network of ATMs amongst the public sectors banks in India. The Indian banks have also come up with a SWADHAN scheme. Under this scheme, the banks can use each others ATM at a cost, usually Rs. 35 extra from their customers. The main features of SWADHAN CARD are as follows. Now almost all banks in India are having its own ATM centers across the country. At present, one can use any ATM of any Bank in the country at very less limitations.

III.

OBJECTIVE OF THE STUDY

To study the present situation of Indian Banks and review the technologies used by them. To study the concept of ATM in depth, beyond the regular use and general information. To study the history & origin of ATM machine and ATM service. To determine the various advantages and dis-advantages of ATM services. To determine the significance of the ATM service with reference to several banks and customers. To determine the actual working of this technology technically and with comparison of other monetary aspects. To determine some of the factors that influence ATMs leading to satisfaction and some of the factors that influence ATMs leading to dissatisfaction.

IV. RESEARCH METHODOLOGY

This report is based on primary as well as secondary data, however the secondary data collection was given more importance since it has extracted from the reliable sources. Primary data is collected for the purpose of obtaining ATM users views and opinions as stated above in the objectives. Data Sources : Secondary data is used only for the reference and information. Research has been done by primary data collection and primary data has been collected by interacting with various people. The secondary data has been collected through various books and websites. Statistical Techniques Used : Statistical calculations have been made, making general use of Microsoft Excel on the computer. The Statistics and Graphs / Tables are based on Secondary & primary data extracted from various resources.

CHAPTER : 2

INTRODUCTION TO AUTOMATED TELLER MACHINE

TECHNICAL PERCEPTION :
With a technical view, AUTOMATED TELLER MACHINE is simply a safe with an electro-mechanical input and output system which itself controlled by a fully Electronic User Interface. Companies that manufacture ATMs include Fujitsu, IBM NCR and SiemensNixdorf have expended great effort on the user interface itself; taking into extensive care to maximize the speed of the entire customer interaction and keeping the language the used for the interaction process a clear and straightforward as possible. Most ATMs nowadays use a Cathode-Ray Tube (CRT) for the visual interface, although some ATMs of an older design make use of a system where by the different interface pages are scrolled mechanically behind a glass screen. It is important that a ATMs user interface should not only be easy to use and clearly understandable but should be designed so as to minimize the likelihood of the customer leaving without taking from the machine all the things he needs to take. These are the cash, paper receipt and above all, the card. There is no doubt that the card is the most likely items to be forgotten by a customer, who sees the purpose of the interactive process being to obtain cash. So, ATMs usually have some kind of sound alarm, which only stops when the customer has removed his card from the slot. Some machines also provide visual message to remind the customer to retrieve the card, especially if the functions is one where the customer is not going to remaining by the machine until the cash has been allotted.

10

In order to prevent security problem if the customer however forgets to retrieve the card, the machine will swallow the card after a short period normally about 30 seconds. The customer will then usually need to apply centrally to get the card returned, although if ATM is situated in the lobby or through the wall of a branch where he is known, he can sometimes get the card back from the ATM by asking for the branch to extract it. The machines currently in use allow user to draw any sum of up to a limited account, view the current position of their accounts and order a new cheque-book. To obtain money from the unit the customer need special ATM card and is notified of Personal Identification Number, which is not shown on the face of the card. The card must to be inserted into machine and the personal number typed in. the machine will validate the code number and if correct will allow access the banks computer to check the account balance and if there are sufficient funds, to withdraw cash.

MEANING & DEFINITION

MEANING : An Automated Teller Machine (ATM) is a computerized

telecommunications device that provides the customers of a bank with access to financial transactions in a public space without the need for a human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, which contains a unique card number and some security information, such as an expiration date or CVC. Security is provided by the customer entering a Personal Identification Number (PIN). Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit

11

card cash advances) and check their account balances. ATMs are known by various casual terms including automated banking machine, money machine, cash machine, hole-in-the-wall, cash point.

DEFINITION : A machine at a bank branch or other location which enables a customer to perform basic banking activities (checking one's balance, withdrawing or transferring funds) even when the bank is closed. According to American Heritage Dictionary, An ATM is.. An unattended electronic machine in a public place, connected to a data system and related equipment and activated by a bank customer to obtain cash withdrawals and other banking services. Also called automatic teller machine, cash machine, Also called money machine. ATM is an abbreviation of "Automated Teller Machine". Its a machine used by the banks all over the world. This machine allows the account holder to have transactions with their own accounts in bank without allowing them to access the entire bank's database. One can use the ATM of a bank in which he do not have an account by paying some charges.

12

CHAPTER : 3

HISTORY OF ATM
ATM was first used in Barclays Bank in 1967. Shepherd-Barron has the major claim of Invention; there have been many other individuals who have also invented some version of the ATM. The machine itself has advanced over the years, with the earlier versions restricted to only one or few banking functions. There has been much debate, however, on who invented the first early versions of Automated Teller Machine. But the history of ATM can be visibly traced back to the year of 1967. In 1939, a basic cash machine was invented by Luther George Simijian and established by the City Bank of New York. However, the machine did not work much and had to be removed within six months of putting up the machine. The early versions of the ATM were restricted to cash withdrawal only. In the 1967 model, patented by Shepherd-Barron, the plastic cards did not exist and instead a voucher with a strip of radioactive substance was used for withdrawing cash. Consequently, the vouchers were matched with a particular personal pin code used by the bank to identify the customer. The ATM was installed by renowned British actor, Reg Varney. The personal identification number was initially a six numbered password and was later changed to a four numbered password. However, this automated teller machine was very different from the modern day teller machines, which is based on an electronic system between the different branches of the bank. Thus, the history of ATM has seen many changes over the span of 25 years since 1939. Another co-patent to the invention of the ATM was Don Wetzel, the Vice President of Product Planning at Docutel. While the conceptualization began in 1968, the
13

patent was issued only in 1973. This cash machine was first used by the New York based, the Chemical Bank. As was the case with the ATMs of during those years, they were hardly a multi-functional unit. Moreover, they were not based on any electronic system. Hence, the debit cards, distinct from credit cards, were given to only select clients with good track records. The first ATM cards, with magnetic strips were developed by three individuals, namely Don Wetzel, Tom Barnes and George Chastain. While there were many developments in the history of ATM, the service itself took a stronghold only in the 1970s. Today, the ATM service has become essential to our modern day lives.

INVENTION : Many people have claimed to be the inventor of the ATM. Some believe that Luther George Simjian did it. Some believe that it was Don Wetzel. Still others say the inventor is John Shepherd-Barron. The ATM Inventors and the facts: Luther George Simjian : In the late 1930's, Luther George Simjian started building an earlier and not-sosuccessful version of an ATM, but he did register related patents. He initially came up with the idea of creating a hole-in-the-wall machine that would allow customers to make financial transactions; the idea was met with a great deal of doubt. Starting in 1939, Simjian registered 20 patents related to the device and persuaded what is now Citicorp to give it a trial.

14

John Shepherd-Barron: John Shepherd-Barron had an idea in the 1960's for a 24/7 cash machine. At the time, he was managing director of De La Rue Instruments. De La Rue today manufactures cash machines. In fact, there is a De La Rue cash machine in 1 out of every 5 ATM machines built. If you want to believe that Shepherd-Barron invented the ATM, then the world's first ATM was installed outside a north London branch of Barclays Bank in 1967. Later In 1967, Shepherd-Barron presented his idea to a conference of 2,000 US bankers in Miami, after the first ATMs had been installed in England. He spoke to the conference about the new self-service banking device he developed.

15

FEATURES OR FUNCTIONS OF ATM

1. Deposit Cash / Cheque : Special deposits slip-cum-envelopes are provided at the ATM centers. All ATM cardholder have to do is fill in the details of cash or cheques and insert it into the deposit slot. 2. Choice Money ATM : Choice of Denomination Bank gives to ATM cardholder the freedom to choose from the mix of 100, 500 & 1000 rupee denomination from our ATMs. So the next time ATM cardholder use banks ATM, choose the denomination as per cardholder need. 3. Withdraw Cash : ATM cardholder can withdraw up to Rs 50,000/- per day from his account using the ATM/Debit card in any of ATMs across the country subject to availability of balance in holder account. Also cardholder can also shop up to Rs 1,00,000/- per day using your debit card. 4. Statement Enquiry : ATM cardholder can get a mini-statement of last five transactions done on holder account. 5. Balance Enquiry : Cardholder can check the available balance in their account and even get it printed on the transaction slip. 6. Funds Transfer : Flexibility to allow on-line transfer of funds between cardholder various accounts linked with holder ATM/Debit card. 7. Fast Cash : In spite of holding multiple accounts, cardholder have the option of withdrawing cash through holders primary account only. 8. Register to Internet Banking : ATM cardholder can place requests for Internet Banking. Cardholder access passwords will be dispatched to cardholder mailing address.

16

9. Register for Mobile Alerts : Cardholder can have or register himself for mobile alerts by using ATM. A customer gets his transaction details on his mobile phone as text massage after any transaction in any ATM.

ADVANTAGE & DISADVANTAGE OF ATM

ADVANTAGES : 1. The main advantage of using an ATM is that one can have access to the cash in bank account whenever he need it. This also means one can travel anywhere without cash. If the location has an ATM and one have ATM card, he can access money instantly. 2. Today's ATMs are not just machines one can use to access cash. On some ATMs people can transfer funds between accounts, buy stocks, check account balances and even buy stamps. All of these features can be accessed with one debit card or credit card and a PIN number. DISADVANTAGES :
1. ATM and debit cards allow consumers direct access to the funds in their bank

accounts. So the cardholder must keep privacy about his PIN.

2. ATM cards make it possible to overdraft bank account, so they require that

account-holder keep careful record of his spending. With an ATM card, it is important to check account balance at all times. The overdraft fees associated with bank accounts are high enough that the consequences of over-drafting, even by a small amount, are quite serious.

17

3. Hidden Fees : Hidden fees seem to be waiting around every corner of the financial

world. If you are not using an ATM that is affiliated with your bank, then one will likely have to pay a fee. Although many banks tried to have conveniently-located ATM machines, using any ATM machine not associated with the parent bank can reduce bank account balance.
4. Lost or Stolen Cards : Although there are protections out there for identity theft

victims, when an ATM card is lost or stolen, it can bring disaster for the card owner. ATM cards can fall into the wrong hands and be used to rob account or make purchases without the knowledge of account-holder. A thief could use your ATM card as a credit card by forging your signature or for online purchases simply by knowing your card number and expiration date. Banks do not offer the same protections on ATM cards as credit cards so check your financial institution for its policy on unauthorized transactions.
5. Ease of Overspending : While ATM cards make shopping simple by boiling the

process down to the simple swipe of a card, they also promote overspending. When we shop with cash, we know instantly where we stand financially and how much money remains. With a debit or ATM card, it becomes difficult to monitor how much is being spent and how much money is left until the card decline or we are hit with an overdraft charge.

18

CHAPTER : 4

4.1 INTRODUCTION TO ATM CARDS

Now a days, If any one have a bank account there is a good chance that he have an ATM card, which stands for Automated Teller Machines Card. This card gives the ability to go to an ATM center and perform transactions. An ATM is a machine or computerized terminal that gives bank customers the ability to access their funds without the need of a teller or bank employee. Every customer has a four-digit pin code, as a matter of security that must be keyed in before transactions can be performed. Customers have access to their funds 24 hours per day, seven days per week.

TYPES OF ATM CARDS : Most of the people use plastic money to pay for items than cash. There are many different types of cards used to make purchases or withdraw money and many people don't think about their differences. There are significant differences between ATM, debit and credit cards. There are several different types of cards that fall under the category of an ATM card. i. Basic ATM Card : A basic ATM card only has a few uses. It can be used at any ATM machine for the bank that issued it and sometimes at other banks for a fee. One can use ATM card to withdraw and deposit money, check account balance and transfer funds. Some ATM cards also have a few more uses like paying loans and getting cash advances, however ATM cards cannot be used to make purchases.

19

ii.

ATM cum Debit Card :

An ATM cum debit card has all the features of a

regular ATM card with the added features of a debit card. This card can be used to make purchases at any store or online. Typically they will have a credit card logo on them, although they do not work the same way as credit cards. Every time and ATM debit card is used; money is taken out of the checking account it is linked to. iii. ATM cum Credit Cards : A new type of debit card is available at some banks.

This type of card has all the features of the ATM debit card plus the features of a credit card. This card is not only attached to a checking account, but also to a line of credit. This means that if the person overdrafts on their account they will not incur any fees and will instead have money taken out of their credit line to be paid back with interest when funds are made available.

20

4.2 WORKING OF ATM

The Basic Structure / Working Model : Any ATM machine needs a data

terminal with two inputs and four output devices. Of course, for this to happen there should also be the availability of a host processor. The host processor is necessary so that the ATM can connect and also communicate with the person requesting the cash. The Internet Service Provider (ISP) also plays an important role in this action. They act as the gateway to the intermediate networks and also the bank computer. There are mainly two types of ATMs which differ according to the way they operate. They are as follows 1) Leased-Line ATM 2) Dial-Up ATM Machines A Leased-Line ATM Machine has a 4-wire, point to point dedicated telephone line which helps in connecting it with the host processor. These types of machines are preferred in places where the user volume is high. They are considered high end and the operating costs of this type of a machine is very high. The Dial-Up ATM Machines only has a normal phone line with a modem and a toll free number. As these are normal connections their initial installation cost is very less and their operating costs only become a fraction of that of a Leased-Line ATM. The host is mainly owned by the bank. It can also be owned by an ISP. If the host is owned by the bank only machines that work for that particular bank will be supported.

21

CHAPTER : 5

5.1 WAY TO USE ATM

ATMs, standing for "Automatic Teller Machines", are an easy, convenient way to access bank account from almost anywhere. If any one is new to them, still he can use the machine. It's easy. The instructions are right there, on the machine. Steps involved in Depositing Money: 1. Be alert : As you approach the ATM, look around for other people. If it is night time, pick an ATM in a well-lit location. If using a drive-up ATM, pull up close to it so no one can see entered PIN (Personal Identification Number). 2. Fill out a deposit slip, if needed : Take an envelope and prepare any deposits you will make ahead of time Fill out a deposit slip, if any bank requires one and include it in the envelope. Write the amounts of money depositing in the space provided. Write the total of all cash on the first line. 3. Endorse the Cheque: To deposit a check, sign the back of the Cheque (called "endorsing" the check) with name as it is written on the front. Depending on the rules of bank, one may also write "for deposit only" and include account number, as shown. Write the amount of each Cheque on a line of the deposit slip. Beside it, write the "fraction". This number appears on the face of the check, often in the upper right corner near the check number. It tells the bank where the check came from. Add up the amounts depositing and write the number down where depositor can see it after sealing the envelope. Then, seal the envelope.

22

4. Insert your ATM Card into the machine. 5. Select a language : This option often only comes up where card is registered as being from another country, unless one live in a country or region with languages other than English are in major use. 6. Enter your PIN (Personal Identification Number) : Then press Enter. 7. Select a transaction. 8. Deposit money. 9. If you want to deposit (put in) money: 10. Enter the amount of deposit. Confirm the amount. Insert the envelope into the deposit slot when the machine opens it. Note that some ATMs will not allow to deposit money. Steps involved in Withdrawing Money: 1. Insert ATM Card into the machine 2. Select a language. 3. Enter PIN (Personal Identification Number), then press Enter. 4. Select or enter the amount 5 Withdraw money. Most machines dispense money in fixed amounts. One may be given a choice between common amounts or may be asked to enter a number that is a multiple of 20 (20, 40, 60, 80, 100 etc.). Take the cash when the door opens. Put it directly into wallet. 6. Choose whether to do an additional transaction. Select Yes or No.

23

7. Choose whether you want a receipt, select Yes or No. Take the receipt if you requested it. 8. Wait while the system processes your transaction. When the machine beeps , take the card, cash and receipt (if applicable). 9. Use the receipt to record the transaction in register or Passbook.

5.2 USES OF ATM

i. Cash Withdrawal and Balance Enquiry : In spite of a number of innovative services being made available at many ATMs, cash withdrawal stills remains the most accessed service at ATMs. However, the relocation of routine bank transactions like cash withdrawals and balance enquiries from teller counters to ATMs significantly increases the potential for savings in employee costs and greater employee focus on value-added revenue-enhancing activities such as selling other financial products and advisory services to customers. ii. Cash /Cheque Deposit : Again, due to the strong cash culture in

India, cash deposits are most likely higher than in other markets, especially cash deposits made by commercial customers such as retail shopkeepers and those whose work involves important traveling. A high cash withdrawal rate results in higher ATM servicing costs due to frequent cash renewal requirements. Recent developments in ATM technology have made it possible to recycle cash in ATMs. Currency notes received as cash deposits are counted; soiled notes separated and deposited cash allotted to fulfill withdrawal transactions. However, regulatory

24

concerns relating to identification of bogus notes and its depositors need to be addressed first. ATM with Cheque deposit facility is not picking up in India, like other countries. One of the reasons is the delay in collection of the cheque deposited in ATMs. Cheque deposited in ATMs is to be collected and deposited in the designated branch for collection. Another reason is the introduction of cheque deposit Stands by various Banks especially Private sector ones. These are kept at each some important locations/branches where customers can deposit there cheques which are collected at intervals which may be difficult in ATMs. iii. Bill Payments: Most utilities have inadequate infrastructure for receiving bill payments resulting in long queues at collection centres. Hence, bill payment at ATMs has achieved noticeable acceptance by bank customers. Most banks provide this service through bilateral arrangements with bill-payment service providers. ATM users register their water, electricity and telephone utility accounts with banks, check their dues at ATMs, approve bill payments that are debited to their bank accounts and receive printed receipts for the transactions. This service has the effect of improving customer satisfaction for both the bank as well as the bill-payment service providers. Some Banks ATMs even accept charitable contributions to Temples. iv. Sale of Paper sled Products: ATMs are ideally suited to sell paper-based products and services such as tickets, wireless phone recharge cards, financial products, etc. The screen interface allows

25

browsing and customization, access to bank accounts facilitate payments and printing capabilities produce the actual product/service. A number of banks including ICICI Bank, SBI and PNB have ATMs at Mumbais local railway stations to dispense season tickets to travellers. Own-bank customers pay no extra charge while other bank customers pay a fee of Rs. 50 for this extremely useful service of anytime ticket purchase. Railway season tickets represent a high-volume mass-appeal product. As technical standards get established and product/service sellers become aware of the ATM sales channel, role- appeal high-margin products like entertainment tickets will join the fight. v. Kiosks : Information Kiosks has been introduced by many Banks and also by PSUs like Railways, Tourist centers etc. While the revenue-producing capacity of non-emergency type of information at ATMs as a stand-alone product is doubtful, many customers may be willing to pay a nominal fee for information having impulsive demand such as cricket scores while they wait for their transactions to be processed. To be sure, providing information, whether priced or free, will appeal to some customers and increase customer satisfaction. Union Bank has used technology to establish Village Knowledge Centers (VKCs), which have proved to be a success in the 198 centers, where they have been set up. VKCs empower the local rural population by giving them information on various vital inputs such as weather, fertilizers, prices of crops, etc. The bank is also operating financial education centers offering counseling at 51 of these VKCs.

26

vi.

Third Party Advertising: In India, ATM advertising for third-party products is currently not allowed by Regulatory authorities. However, the wait time at ATMs can be effectively used by banks to promote their own brands, product and services. Furthermore, banks can tailor advertising messages based on customer information easily available in their accounting and CRM databases. Customer wait-time at ATMs while transactions get processed, typically between 10 to 25 seconds, has been profitably used by many banks for their own advertising.

vii.

Money Transfers : Indians, who have migrated abroad or to cities, regularly use money orders and wire transfers to send money to their families back home. ATM growth, especially in rural India, will capture substantial business from the expensive wire transfer agents network and the customer-service lacking postal network. In line with international trends, ATMs can be made capable to dispense printed money orders or initiate wire transfers against a charge on customers bank accounts. After addressing regulatory hurdles, these services can even be made available to non-account holders through cash payments using the currency acceptors built into ATMs. ATMs can also facilitate the encashment of wire transfer amounts by allowing even non-account holders to withdraw cash based on Pins or previously mailed special-purpose ATM cards.

viii.

Recharge Mobiles via ATMs : ATMs are also used to recharge mobile phones. Initiated in 2004 by ICICI Bank, now most ATM/Debit Cardholders are able to recharge their pre-paid subscriptions of

27

most mobile service providers from anywhere in the country using their banks ATMs or by sending a SMS. The amount for recharging the mobile phone would be debited from the subscribers Bank account and the subscription would be directly recharged accordingly. The mobile top-up facility provides convenience on ATMs and through mobile phones using SMS.

28

CHAPTER : 6

SCOPE OF ATM IN INDIA.

Automated Teller Machines (ATMs) have gained importance as a delivery channel for banking transactions in India. Banks have been organizing ATMs to increase their reach. As at the end of December 2007, the number of ATMs deployed in India was 32,342. From first day of April 2009, entire ATM network is now available to customers from any bank for transactions for no fee at all, irrespective of the banks in which they have their accounts, Now Customers will not be charged any fee on cash withdrawals using ATM and debit cards issued by other banks. This will in turn increase usage of ATMs in India More people are now moving towards using the Automated Teller Machines (ATM) for their banking needs. According to a survey by Bank net India, 95% people now prefer this modern channel to traditional mode of banking. Almost 60% people use an ATM at least once a week Increased ATM usage is also helped by the fact that customers have now the flexibility of using ATMs of other banks, as most of the banks are part of major interbank networks like National Financial Switch (NFS), Mitr, BANCS, Cash Tree and Cash net. The interbank networks have brought together ATMs of several banks so that consumers would gain access to any of the participating banks ATMs. Banks find it cheaper to pay membership fees to these networks as against setting up additional units in expensive-to-deploy areas.

29

ATMs are now seen to be more than cash providing machines. Customers use ATMs to recharge their mobile phone pre-paid connections, pay their utility bills, even mutual fund transactions making them at par with flexibility given in internet banking only more secure. However, still about one third of the respondents do not use any value added services at ATMs. The ATM market in India is not yet saturated. Though the concentration of ATMs is greater in metros, the demand is increasing for other cities and even rural areas. ATM's per million people approximately is 33 units is very low. Experts estimate that the growth rate is expected to grow 18 percent up by 2013. Banks going into a self service model can have huge saving potential for banks and may also increase the convenience for the customers. Many ATM vendors have devised specialized machines, embedded with biometric devices for authentication. Interacting to the rural population, these machines have enabled them to interact with the machine in their local language and on a Graphical User Interface. The rural customer has appeared to accept this new medium. This has the potential to further widen the scope of ATM usage in the interior parts of the country. There is also interest towards white-label ATMs. Many companies are interested in this model, where the ownership of the ATM will not be with the banks but with third parties who install them and make money on fees charged on every transaction. The concept is prevalent in the American continent Wide acceptance of ATMs by consumers, introduction of biometric ATMs, and increasing scope of value-added ATM services will maintain growth in the industry.

30

CHAPTER : 7

DATA ANALYSIS
HDFC BANK (Source : http://www.hdfcbank.com/) HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). Features of HDFC ATM Service : 24 hour access to cash : Customer can withdraw up to Rs. 10,000 per day on ATM Card and up to Rs. 25,000 or more on Debit Card (depending on the type of card held). Personalised cash withdrawals: Save time on cash withdrawal transactions by presetting preferred language / account / amount. View account balances and mini-statements: Get a mini-statement with the last 9 transactions of bank account, with account balance. Change ATM PIN: Change ATM PIN whenever you want. Order a cheque book or account statement: Customer can order a cheque book or an account statement from HDFC ATMs. HDFC Bank Credit Card Payment: Pay Credit Card bill at any of HDFC ATMs. The primary account of Debit / ATM card will be debited.

31

 Deposit cash or cheques: Deposit cheques or cash into bank account at HDFCs selected non-branch ATMs. Transfer funds between accounts : Customer can transfer funds between the accounts. A maximum of 16 accounts (Savings / Current) can be linked to a card. Refill your Prepaid mobile: Refill prepaid mobile using the Prepaid Mobile Refill service instantly. Pay Utility Bills: Pay mobile, telephone and electricity bills through HDFC ATMs using BillPay, a comprehensive bill payment solution. Cheque Status Enquiry: Get information about the status of a cheque issued from customers account. Netbanking Password Request: Request for your NetBanking password (IPIN) at an ATM and it will be sent to your recorder mailing address. Registration for Mobile Banking: Register for Mobile Banking and use Banking services through mobile. Pay Taxes: Register for payment of Direct Taxes and pay Taxes using ATM / Debit Card. Cash Advance / Cash Withdrawal Limit : HDFC Bank customers can withdraw up to Rs.10,000/- per day. For non-HDFC Bank customers, the limit is as decided by the bank issuing the Card. Liability Incase An ATM / Debit Card is Lost or Stolen : In case card is lost / stolen, as first step customer need to block his card in order to avoid any fraudulent transaction happening from his account. For blocking card he need to either Call up his local HDFC

32

Bank, Phone Banking Number etc.. or Log onto HDFC Bank Net Banking and block the card using the option of 'Hotlisting' under 'Debit Cards' Customer has to Visit nearest HDFC Bank Branch. If ATM card get stuck inside the HDFC Bank ATM. Customer can request for card to be delivered either at the mailing address which bank have received or at the nearest branch where customer will have to collect the same in person. IF ATM card get stuck inside any other bank ATM : In case HDFC Bank card gets captured inside any other Bank's ATM machine customer are requested to block card immediately by either Calling up the local HDFC Bank. In case ATM pin is forgotten by card holder: One can place the request for regeneration of ATM PIN either Calling up the local HDFC Bank Phone Banking Number. One will be charged Rs.25/-(exclusive of taxes) towards regeneration of the ATM PIN.

33

CHAPTER : 8

8.1 CONCLUSION
In this period of increasing competition among the banks, ATMs have played a vital role in helping the bank to sustain in the market and to gain more & more customers. The ATMs have gained worldwide popularity within a few years. ATM machines are easy to operate and hence, attract more and more customers. There are quite of innovations, which are being taken place in the ATM machine. ATMs is a form of easy banking. The aim of banks of setting of ATMs is to serve to the needs of the customers. The flexibility of the ATMs has increased so much that now -a-days, have been reached the doorsteps of the customers. The customers using the ATM machine are satisfied with the service and have very less complaints about the machines. Thus the ATMs i.e. any time money machine has fulfilled the customers needs to its greatest extent. In the near future the banks have also promised to come up with new innovations in the ATMs. The locations of ATMs are the key location of any particular area.

8.2 RECOMMENDATION
Even though the ATMs have made many functions convenient, still there are places where its services can be improved and make more secure. It is not possible to any one to withdraw more than Rs.10000 at one time and also it is limited to certain amount some times hence there comes a limit on this. Such limitations should be removed and RBI & banks should strive to overcome with this.

34

Also the banks and RBI should try to aware people about the ATM facility and educate them about it. Considering the security, it is very much necessary that CCTV in each ATM for 24 hours surveillance. There should be always one security guard in every ATM for 24 hours. Considering the theft cases of ATM, taken place in some areas, it should be necessary for bank to fix properly the Machines in wall. The hidden charges or over-transactions charges about all transactions should be properly displayed in every ATM center for the knowledge of customers. While considering the cost for bank, they should also try to find some income sources from such services such as advertising of third party in ATM etc.

8.3 BIBLIOGRAPHY.
Texts & Print References : New Concepts of Banking By S.S. Kaptan. Virtual Banking Revolution . By James Essinger. Reference Book for SYJC. ECONOMICS.By Michel Vaz. Websites & Online Portals : http://www.hdfcbank.com/personal/ways_to_bank/ways-tobankdetails/atms/gts8mity [HDFC Bank Information] http://en.wikipedia.org/wiki/Automated_teller_machine#History [ATM information] http://www.investorwords.com/308/ATM.html [ATM- meaning & Definition] http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=26693 about White label ATM] [RBIs notice

35