UNIVERSITY OF MUMBAI

PROJECT ON

BACHELOR OF COMMERCE
(BANKING & INSURANCE)
SEMESTER V
(2015-16)
SUBMITTED BY
ROLL NO. :
PROJECT GUIDE
PROF. (Mrs.)

HINDI VIDYA PRACHAR SAMITIS

RAMNIRANJAN JHUNJHUNWALA COLLEGE
GHATKOPAR (WEST) MUMBAI 400 086

CERTIFICATE
This is to certify that Miss/Mr.

of B.Com Banking and Insurance

Semester V (2015-16) has successfully completed the project on

under the guidance of Prof. (Mrs.)

Principal
Dr. Usha Mukundan

Seal of the College

Project Guide / Internal Examiner

Prof. (Mrs.):
External Examiner
Prof.
Date:

DECLARATION
I,

of the student of B.Com (Banking & Insurance) Sem. V (2015-16) hereby

declare that have completed the project on

The information submitted is true and original to the best of my knowledge.

Signature of Student
Name of the Student:
Roll No. :

ACKNOWLEDGEMENT
I would like to express my sincere gratitude to the Almighty for having showered
his immense blessing on me and has enabled to complete this research work.
I would also like express my heartfelt gratitude to our Principal Dr. Usha
Mukundan, who has given me opportunity to conduct this study.
My guide also deserves sincere thanks that she has given me her guidance
throughout the project and made it a success.
My parents have been a backbone to me in completing this Project and my
friends who extended their constant support during my study also deserve
heartfelt thanks.

INDEX
1

SR. NO.

TOPIC

01

02

03

04

05

06

07

08

09

10

PAGE NO.

Index

CHP.1 INTRODUCTION TO ATM

1.1

Introduction
Automated Teller Machine (ATMs) has gained prominence as a

delivery channel for banking transactions in India. Banks have been deploying
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 levied any
fee on cash withdrawals using ATM and debit card 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 Banknet
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), Cashtree and
cashnet. The interbank networks have brought together ATMSs 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.
ATMs are now seen to be more than mere cash dispensing machines.
Customers use ATMs to recharge their mobile phone prepaid connections, pay
their utility bills even Mutual fund transactions making them at par with
flexibility given in internet banking only more secure. Of the value-added
services provided at ATMs, bill payment is the most used service, followed by
prepaid mobile talk-time recharges. 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
concentrations of ATMs are greater in metros, the demand is increasing for other
cities and even rural areas. ATMs per million people approximately are 33 units
are very low. Experts forecast that the growth rate. I 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 convenience for the customers.

1.2 History
The first Automated Teller Machine (ATM) was introduced in the
year 1967 by BNarclays Bank in Enfield Town in North London. At that time a
few would have anticipated excess in ATMs. Then many years after, the aim was
to shift people off the teller lines thus lowering a banks distribution costs and
increase efficiency. But in the 1980s, it was notified that people continued to
visit branches, though not as frequently, so that with the costs of ATMs, overall
distribution costs were actually rising.
Then, in the 1990s, came surcharges, which fuelled the proliferation
of off-premises ATMs, which led in turn to the current overcapacity. There was a
slowdown in ATM transactions, partially because of the consumers reaction to
the imposition of purchase. Also by the advent of surcharging there was a
massive growth in the number of ATMs as it offered ATM owners revenues
making it economical to install ATMs where they might not have been placed
otherwise.
As is often the as with inventions, many inventors contribute to
the history of an invention. In the case of the ATM, Don Wetzel invented the first
successful and modern ATM in the USA, however he was not first inventor to
create an ATM. In 1939, Luther George Simjian started patenting an earlier and
not-so-successful version of an ATM.

1.3 ATM REVOLUTION IN BANKING INDUSTRY

As is often the case with inventions, many inventors contribute to
the history of an invention. In the case of the ATM, Don Wetzel invented the first
successful and modern ATM in the USA, however he was not first inventor to
create an ATM. In 1939, Luther George Simjian started patenting an earlier and
not-so-successful version of an ATM.
Cash Technologies Inc. Introduces New Transaction Processing
System to Revolutionize the Traditional ATM
According to ATM developer and DocuTel employee Don Wetzel,
we never did see the ATM as just a cash dispenser. We thought it had to be a
machine that did most of the functions of a teller including transferring money,
taking payments and issuing cash advances. But, nearly 30 years later, the ATM
is still not much more than a cash dispenser. In fact, out of the nearly 220000
ATMs installed in the U.S., research shows nearly half provide only cash
dispensing transactions. And, only five percent of the remaining ATMs do
anything more than the original, basic bank account functionseven though
consumers are demanding more twenty-four hour services from their local bank.

 Important reason for possessing ATM Card

Dichotomy Label

Count

Responses

% of cases

Bank offered free

Emergency

34

18.7

34

54

29.7

54

50

27.5

50

42

23.1

42

1.1

180

100

182

purpose
Availability

of

many ATM centers

24
hours
availability of cash
Other reasons
Total Responses

Analysis that can be made from the table and the graph is that
the main purpose why people possess ATM card is to deal with the emergency
purpose, 54% of the respondents had emergency purpose as a reason to possess
ATM card 50% of respondents responded availability as reason and 42% had 24hour accessibility as reason for processing ATM card. According to 34% of
respondents the processed the ATM card as bank offered the card free.

Reason for possessing ATM Card

Bank offered free 19%
1%
23%

Emergency purpose 30%

19%

Availability of many ATM

centeres 27%
24 hours availability of
cash 23%

27%

Other reasons 1%

30%

Why? The answer is simple

The protocol used by ATMs, which was developed their inception, does
not support additional on-line services such as check cashing, bill payment
, money order issuance and event ticketing.
. For the first time, communication between four primary channels:
1.
2.
3.
4.

The ATM network

The credit card networks,
The Automated Clearing House (ACH) networks and
Cash will interface seamlessly.

With the new platform, ATMs are on their way to becoming electronic
convenience kiosks, capable of event and airline ticketing, electronic bill
payment, and connecting to an alternate host via the internet.
With ATMs becoming such a formidable delivery channel, banks are
weighing whether to configure their ATMs to do more than just standard cash
withdrawals.
ATM Magazine

An online magazine aimed at the ATM industry, where you can read about
the latest innovations in ATM technology.

As The ATM Turns 30, Shamelessly Little Has Changed

Banks are weighing whether to configure their ATMs to do more than just
standard cash withdrawals.
ATM INDUSTRY STATUS IN INDIA
In India ATM is still a new technology. With the emergence of private
sector banks like ICICI bank, IDBI bank, HDFC bank, etc. the number of
ATM centers has increased tremendously. There are presently all types of
banks offering ATM services. For example State Bank Of India (a public
sector bank), ICICI bank (a private bank), Citibank (a foreign bank),
Greater Bombay CO-OP Bank (a co-op bank).

The banks are offering various services like cash withdrawal, fund transfer,
balance enquiry, etc.
The banks have tie ups in between them for sharing of their services this may
be bilateral or multilateral by way of consortium like SWADHAN.

CHP.2. NATURE OF ATM

2.1ATM NETWORKS

In recent years, computer systems have achieved an almost explosive

increase in performance, such that developments in the field of data
communications have been unable to keep up. Where the processor performance
and memory capacity of PCs have grown over the past ten years by a factor of a
hundred, transfer speeds in wide area networks have risen 'only' by a factor of
ten, and in LANs they have been stayed much the same.
ATM is a standard recognized throughout the world, which provides for
the first time a method for universal information exchange, independent of the
end-system and the type of information (data, audio, and video).The architecture
of ATM (53 byte cells) supports the design of massive parallel
Communication architectures and enables the implementation of networks with
transfer rates in the gigabit range. With the high-speed networks, it is possible to
send huge quantities of data generated by the latest applications (video mail,
interactive TV, virtual reality, etc)
ATM is suitable for local area networks as well as wide area networks. The
ability of ATM to emulate traditional LAN and WAN architectures will ensure a
smooth transition from today's computer network infrastructure to ATM-based
high-speed technology.

The intense development efforts being made all major

manufacturers of data communication systems in the area of ATM/B-ISDN are
evidence of the strategic importance to the industry of this new transmission
technology. ATM is increasingly being adopted as the central strategic
technology for data communication throughout the industry today.

ATM opens the possibility of designing networks with

transmission speeds up to the physical limits. ATM networks with bandwidths
approaching the bandwidth of light (30 Terahertz) are imaginable and ATM
switches with processing speeds of up to 1 Tbit/s have already been
demonstrated in research laboratories. In ATM we may have on our doorstep the
ultimate transfer mechanism in data communications.
2.2 ATM - ASYNCHRONOUS TRANSFER MODE:
Asynchronous Transfer Mode is a communication standard that
uses a high-speed form of packet switching network as the transmission media
ATM was developed as a part of the Broad band Integrated Services Digital
Network (BISDN). ATM is intended to utilize the synchronous optical network
(SONET).
Conventional electronic switching machines currently utilize a
central processor to establish switching paths and route traffic though a network.
ATM switches, however, will include self-routing procedures where individual
cells containing subscriber data will route their own way through the ATM
switching network in real time using their own address instead of relying on an
external process to establish the switching path (a cell is a short, fixed length
packet of data)
2.3 PRINCIPLE OF ATM:
ATM - originally designed for WAN communications, but quickly
adapted for LANs as well, ends this historical separation and forms a universal
platform for data communication, In both ATM LAN AND ATM WAN networks
the data transport is achieved via connection-oriented communication paths,
which are set up though high-speed switching systems. These ATM switches
1

perform the cell routing from the input ports of the switch to the destination port
in real time and in parallel for the ports.
For data transport ATM uses packets with a fixed length of 53
bytes, the so-called cells. These cells can be processed significantly faster and
more efficiently in switching systems than data packets of variable length.
Because of the cell structure, a massive parallel architecture of ATM switching
systems is possible. Since all cells have the same length, all data units which
wait at the input ports of a switch for transportation at a given time, can be
routed simultaneously to their destination port.
ATM can handle all of today's data services (telephone, data, videobroadcast and interactive) in an efficient way.

2.4 WHY ATM?

Reasons for ATM
Increased bandwidth and real-time responsiveness.
Advantages over Ethernet networks.
Limitations of Token Ring and FDDI networks.
High performance of ATM networks.
1

 ATM is a world wide recognized standard, with which a universal

information exchange can be realized for the first time, independent of the
type of end system and service (data, video, audio).
ATM is suitable for LANs as well as WANs.
ATM is able to handle all existing information services simultaneously
and efficiently.
Since ATM is scalable and therefore available in all speed classes.
As a general rule the maximum achievable BW for copper
2.5 The ATM layer:
The main task of the ATM layer is to transport the data passed down
to it by the adaptation layer(AAL) to its intended destination .this makes the
ATM layer the transport mechanism in B-ISDN networks, the information in the
ATM layer are 53-byte cells, each of which includes in its cell header a
numerical identifier allocating it to a specific connection .these cell streams are
divided in to two logical hierarchies :Virtual channels and virtual paths. Each
cell can be assigned to be a specific path or channel by reference to their
numerical path (VPI,VCI) contained in its header . VPI/VCI Conversion:
If cells are routed via ATM switches or cross connects ,the VCCI and VPI values
applying up to that point need to converted in to new VPIs or VCIs specifying
the cells new destination .
If ATM layer receives n information unit from the AAL layer above it
must generate an appropriate ATM header .It is a central task of the ATM layer to
convert network addresses in the higher levels into the corresponding VPIs and
VCI values, the number subscribers are accessing the physical medium,the GFC
field in an ATM cell can be used to control cell transfer.
1

 The ATM Adaptation layer (AAL):

The job of the AAL layer is to 'segment' the data streams from the
higher applications layer into 48_byte units of information and to
reassemble the original data streams from ATM from cells .the functions
of the ATM, layer depend on the characteristics of the governing
applications -that is, the AAL layer is service -dependent .it consists of
two sub-layers: Convergence Layer (CS) and the Segmentation and
reassemble of Sub-layer(SAR).

The different AAL types:

To limit the number of different AAL implementations, four service
classes have been defined for the AAL Layer: AALl, AAL2, AAL3/4 and
AAL5. The definition of the various AAL types is based on the following
three parameters.
Real time requirements
Bit rate (constant or variable )
Connection type (connection oriented or Non-connection oriented)
AAL TYPE 0:
AAL type 0 denotes an absence of any AAL function, meaning
that AALO is not really an AAL type in the true sense of the term. The functions
of the applications layer are infact superfluous for any service if the transfer
mechanism already based on cells and can therefore be dispensed with.
AAL TYPE 1:
The type 1 adaptation layer is used to transmit applications with constant
bit rate via the B-ISDN network. In addition AAL type 1 protocol can transfer
1

structured data in structured form. Lost or erroneous data is not corrected or

repeated. As with all other AAL types the type 1 ATM adaptation layers consists
of segmentation and reassembles sub layer and convergence of layer.
AAL TYPE 2:
The adaptation layer for type 2 is designed for the transmission of data
streams with variable bit rates, there is a time correlation between sender and
receiver in the case of AAL type 1. The adaptation layer for AAL type 2 has not
yet been specified in detail.
AAL TYPE 3/4:
The adaptation layer type 3/4 specifies the connection oriented and nonconnection oriented transfer of data packets via B-ISDN network. The
connection setup for this may be either point to point or point to multi point. This
makes the AAL 3/4 protocol suitable.

AAL TYPE 5:
The AAL type 5 sub layer amounts to a greatly simplifier
implementation of AAL3/4.
2.6 TYPES OF ATM CELL
As well as dividing into UNI and NNI cells, ATM cells can be
further allocated one of four categories: Idle cells, unassigned cells, Physical
layer OAM cells and VP/VC cells.
Idle cells:
1

Idle cells allow the cell rate to be adjusted to the transfer medium
bandwidth. If there are not enough cells to fill bandwidth provided idle cells are
transmitted. This achieves synchronization with the transmission speed of the
physical medium. Idle cells are not passed to the ATM layer.
Un-assigned cells:
Unassigned cells are cells that have a VPI or VCI value but a
blank data field.
Physical layer OAM cells:
For direct cell transfer on the cell based physical layer, every 27 tl cell is
used to transfer OAM information concerning the physical layer. After receipt by
the physical layer, these cells are not passed on to the ATM layer.

VP/VC cells:
The cells used for communication within virtual channels
or paths can be subdivided into six functional groups. Cells for
transmission of user data, cells for media signaling, cells for broadband
signaling, VC OAM cells SMDS/CBDS cells, ILMI(Interim Local
Management Interface Specification) cells.

2.7 ATM SWITCHES AND CROSS-CONNECTS

ATM switching units -VC switches and Cross-connects
-are the central element in any B-ISDN network, the fact that all ATM cells are
the same size is exploited by a massive parallel architecture. It is the gigabit and
terabit cell throughput rates made possible by this architecture that enable high
speed networks like B-ISDN to be implemented. the switching speeds in ATM
switches and cross-connects exceed the transfer rates of the connected stations
1

by many times , and all the user channels that are to be connected can be fully
processed..
Basic Functions of ATM Switching Units:
An ATM switching unit has two basic jobs:
To identify and analyze the channel and path identifiers ( VPI/VCI) in the
ATM cell.
To Transport the ATM cell from one of the units input ports ti the 'output
port that takes the ATM cell to its intended destination.
There are two main types of ATM switching units:
VP Switching or cross-connects.
VC Switches.
Cross Connects (VP Switches):
ATMs cross-connects terminate incoming paths and transfers them -along
with all the channels in the

path-to another, outgoing path the individual

channels are unaffected by this.

VC Switches:
VC switches terminate both incoming paths(VPs)and incoming channels
(VCs) and re-route them to other outgoing paths and channels .Switching of
virtual channels thus always implies a rerouting of paths ,as the path in the
channel is being transported must always be terminated when the channel is
terminated. VC switches, however, can also the switching unit unaffected.
The Topology of ATM Switching units:
The actual transport of ATM cells within an ATM switching units is
carried out via the switching fabric, the heart of the unit, the task of the
1

switching fabric is to provide dynamic transmission paths between the input

ports and the output ports requested at any given time in such a way that the
fewest possible external and internal conflicts occur. An internal conflict occurs
if to ATM cells in a multi-stage switching network are competing for the same
output port at the dame switching stage, if a blockage of this type occurs at an
output controller-that is, at the output to a switching network-it is known as
external conflict.
Switching Elements:
Switching fabrics are made up of small cell-routing units known as
switching elements. Even a single switching element can be used as a switching
fabric. The switching elements themselves consists of an interconnection
network providing the transmission paths for the ATM cells .there are two basic
types of interconnection network for switching elements.
Matrix structure networks.
Time division Multiplexing networks.
Matrix structure:
In Switching elements with a matrix structure ,the ATM cells
are transported in parallel via a network lattice(crossbar) connecting together the
inputs and outputs of the switching element, the transfer of all the cells arriving
at the input controllers at a given instant in the switching process is carried out
simultaneously and in synchronization with a local clock, the cycle time between
two switching instants is known as a slot, if two cells are competing for the same
output port at the same instant, a blockage may occur. To avoid the loss of cells
through blockages it is necessary to include buffer memory at the input and
output ports and at the points where the transmission paths cross.
1

The matrix Switching element of dimensions N by N will not

cause blockages for a randomly distributed load if the speedup factor is equal
to N. If K is less than N, there will need to be additional buffer memory available
at the input ports to ensure there are no cell losses.

Switching Elements Based on Time Division Multiplexing:

1. Bus Switching elements:
In switching elements based on bus topology, the interconnection
network is implemented using a 16-bit or 32-bit high speed Bus. To enable the
ATM cells to be transferred without colliding , the transfer capacity of the bus
must be at least equal to the sum of the transfer Capacities of the input ports .As
the Transfer-capacities of the bus is several times higher than the rate of the
incoming cells, the input controllers have no difficulty in forwarding the cells
immediately .In order to adjust their transfer rates to the output port rate Bus
switching systems therefore need output port buffering.
2. Ring Switching Elements:
In this the input and output controllers are connected via a ring.
Compared with Bus topology, a ring offers the advantage that a time slot can be
used by more than one input controller within each rotation, although extra
overhead is required to control this mechanism. Although it enable an effective
load of more than 100% of the ring capacity to be achieved.
3. Central Memory Switching Elements:
In central memory switching the cells are written by The input
controllers to a common area of memory from where they are read by the output
controllers. As the buffers for all the output ports Share the same area of
memory, this can result in significant savings of memory Space. Because of their
1

efficient use of memory switching elements with central memory topology are
used particularly in the large switching units with a large number of input and
output ports.
Switching Networks
The switching Structure itself is made up of Switching networks , which
link up the individual switching elements, give the central importance of the
architecture of switching networks to the performance of switching fabrics,
numerous research projects have been carried out in this area over recent years
,the aim of all this research was to achieve the highest possible throughput rates
at the lowest level of integrated circuits .the following are the different network
topologies.
1. The Shuffle Exchange Network.
2. The Extended Switching Matrix Network.
3. Banyan Networks.
4. Benes Networks.
5. Parallel Banyan Networks.
6. Distribution Networks.
Cell Routing In Switching Networks
There are two methods of routing cells along the different transmission
paths inside switching networks:
1.Self-Routing .
2.Table-Controlled Routing.
Self-Routing :
In Self-Routing an additional header-

specific to the element -is added to the front of cells containing coding for the
transmission path along which the cell is to be sent .If the Switching network is
constructed from n stages, this header will contain n sub-fields giving the path
selection at each of the nodes in the switching network .Because of the additional
header, the internal processing speed must be increased in proportion o the
length of the Self-Routing header is five bytes.

Traffic Control And Congestion Control In ATM Networks

A network element in an ATM network is described as congested
(overloaded)if it is no longer able to maintain the agreed performance parameters
for an existing connection .two things may be responsible for this
1. Unpredictable statistical variation in the traffic flow.
2. Errors within the network.
The task of ATM congestion control is to take various measures to minimize the
extent and duration of congestion episodes .the traffic control function is
designed to achieve by optimizing the usage of existing network capacity.

2.8 Functions And Mechanisms:

The following functions are provided for The implementation of traffic
monitoring and congestion control in ATM networks.
Traffic Control:
Management of network capacity.
1

 Access Controls (connection administration control).

Usage Parameters Control (UPC).
Selective discarding of cell.
Traffic Shaping.
Sending Congestion messages to remote station.

Congestion Control:
Traffic shaping.
Sending congestion messages to remote station.
Management of Network Capacity:
The management of network capacity is implemented by means of path
management this allows the switching requirements for the setting up of path
connections to be reduced by reserving in paths.
The end -to-end transmission quality for a given channel connection is
directly dependent on the quality of the series of paths in which the channel is
located .if various channel connections are routed via the same path they will
have similar performance and quality parameters, such as cell loss rate and cell
transfer delay. Channels with similar quality parameters should therefore be
routed over the same ATM path by the traffic control. If the overall transmission
rate of all the channels exceeds the capacity of the path, the cell loss can be
distributed over all he channels by means of statistical time division
multiplexing.
Sending Congestion Messages to Remote station:
1

A network element in a congestion situation can send a congestion

message to its remote station asking for a reduction in he transmission rate.
However, no precise mechanism for this has yet been defined.

2.9 ATM ON INTERNET

ATM will become an increasingly important technology not
only in corporate environments but also within the realm of the Internet.
Graphics-and video-intensive applications necessitates higher speeds. By current
standards , high -speed refers to networks that operate at 155Mbps.A typical
ATM switch can between 16 and 64 ATM devices. Although a single ATM
switch has finite capacity, switches can be interconnected to form a larger
network.
IP address Binding In An ATM network as in technologies, ATM
assigns to each attached computer a physical address that must used when
establishing a virtual circuit .On one hand because an ATM physical address is
larger than an IP address. Thus IP cannot use static address binding for ATM
networks ATM hardware does not support broadcast. Thus IP cannot use
conventional ARP to bind addresses on ATM networks

CHP.3. AUTOMATIC TELLER MACHINES (ATMS) SHARED BY A

CONSORTIUM OF BANKS
3.1 AUTOMATIC TELLER MACHINES (ATMS)
SHARED BY A CONSORTIUM OF BANKS
Each bank provides its own computer to maintain its own accounts
and process transactions against them. Cashier stations are owned by individual
banks and communicate directly with their own banks computers. Human
cashiers enter account and transaction data. Automatic teller machines
communicate with a central computer that clears transactions with the banks. An
automatic teller machine accepts a cash card, interacts with the user,
communicates with the central system to carry out the transaction, dispenses
cash, and prints receipts. The system requires appropriate record keeping and
security provisions. The system must handle concurrent accesses to the same
account correctly. The banks provide their own computers; you are to design the
software for the ATMs and the network. The cost of the shared system is
normally apportioned to the banks according to the number of customers with
cash cards.
In India very good example of such consortium is SWADHAN
NETWORK. SWADHAN NETWORK is a network of various public sector
banks, Private Banks and Co-operative banks with nation wide coverage.

3.2 SWADHAN
1

SWADHAN, Indias FIRST Shared Payment Network Service is

unsurpassed in offering country wide access to the banking operations at
more than 1000 ATMs in and around 64 cities. It has 55 member banks in the
network,

which

includes

nationalized,

private

and

foreign

banks.

SWADHAN provides convenient banking, 24 hours a day and 7 days a week

through the Automated Teller Machines to the participating banks customers
across the country. With

SWADHAN, the banks customers are never far

away from an ATM.

The members banks customers can withdraw money anytime
from any of the ATM irrespective of the bank with which the customer has an
account. It offers services beyond cash withdrawals, like utility bill payment,
fund transferred and deposits. SWADHAN widens the scope of ATM usage
in the country in a cost effective manner. A member bank of SWADHAN
increases its geographical presence without deploying ATMS in all the
locations; instead it can share and use ATMs of other banks, thereby saving a
substantial amount. Likewise, the customer of the bank is highly benefited by
having a nation wide access to the card, without holding multiple accounts in
different banks
.
The average transactions per day in the swadhan network are
around 2500. The largest and only shared payment network system (SPNS) in
India,

SWADHAN is posting a very impressive growth rate since its

inception. In 1997, at the start of the network, the number of ATMs in

SWADHAN Networks was only around 2, where as today it is grown close to
1000 ATMs. Today, in the country, 25% of the ATMs are networked to
SWADHAN. Everyday brings new ATMs and banks to the network.
Being the leading light in Shared Payment Network Systems for debit cards
in India, it has auspicious plans to provide connectivity to the international
1

payment networks, such as master card and visa in a very formidable way. It
is poised to enable the existing system for e-payment thereby helping the
banks excel in an e-powered service.
3.3 Features of ATM
The following are the features available on Banks ATMs, which can be accessed
from anywhere at anytime.
Cash Withdrawals: A customer can withdraw upto Rs. 15000/- on a
single day on his account. In this, the Fast Cash option shows prefixed
amounts, which a customer can choose from, and Ultra Fast Cash option
to withdraw Rs.3000/- at one time.
Balance enquiry: Customer can know the ledger balance and available
balance with his account.
Mini statement: Customer gets a receipt printout of his last 8 transactions
and the balance.
Deposit cash/ cheques: Available in all full function ATMs, customer can
deposit both cash and cheques in the ATM. Cash deposited in ATMs will
be credited to the account on the same day and cheques sent for clearing
on the next working day.
Funds transfer: Customer can transfer funds from one account to the
linked account in the same branch.
Cheque book request: Request for a cheque book from ATMs and their
concerned branch will dispatch its such that it reaches the customer
within 10 working days.
PIN Change: The customer change the Personal Identification Number
(PIN) of the ATM or debit card.

 Payments: This is the latest feature on banks ATMs, its functionality can
be used for payment of bills, donating to temples/ trusts or making airtime
recharges for prepaid mobile phones.

3.5 Purpose for using ATM card

Dichotomy
Label
Cash
withdrawal
Balance
Inquiry
Balance
Transfer
Others

Name

Count

Response

% of Cases

PURCH

97

65.5

97

PUR_BAL

24

16.2

24

PUR_BTRF

22

14.9

22

PUR_OTH

3.4

Purpose for using ATM card

15%

3%

Cash withdrawal 66%

Bal. Inquiry 16%
Bal. Transfer 15%
Others 3%

16%
66%

66 out of the 100respondents ie.66% of respondents use the card mainly for cash
withdrawal. 16% of the respondents use the card for balance inquiry. Out of 100
respondents 22 customers use their ATM card for balance transfer ie.22% of the
respondents.

3.6 How much time customer spends waiting in the queue at ATM centre
Time spend in queue

Less then 5
min
5 to 10 min
More than 10
min
Total

Cumulative

Frequency

Percent

Valid Percent

62

62

62

62

35

35

35

97

100

100

100

100

Percent

Time spend in queue

3%

Less then 5 min 62%

5 to 10 min 35%

35%

more than 10 min 3%

62%

62 out of 100 respondents ie.62% of respondents spend less than 5minutes in the
queue at ATM Centres.35% of respondents spend 5 to 10 minutes in the queue at
the ATM centre.
1

It can be analyzed that 71% of respondents take less than 5minutes for
transaction at ATM centre.25% respondents spend 5 to 10 minutes at ATM
centre. Only 4 out 100 respondents ie.4% spend more than 10 minutes for
transaction at ATM centre.
3.7 Additional services provided by ATM Centre
Dichotomy
Label
Cash Deposit
Cheque
Deposit
Bill Payment
Phone
Banking
Others
Total
Response

Name

Count

Response

% of Cases

ADD_CD

71

36.8

72.4

ADD_CHQ

54

28

55.1

ADD_BP

34

17.6

34.7

ADD_PHB

33

17.1

33.7

ADD_OTH

0.5

193

100

196.9

Additional Service

17%

Cash Deposit 36%

1%

Cheque Deposit 28%

Bill Payment 18%

36%

Phone Banking 17%

18%

Others 1%
28%

36% of the respondents recognize the cash deposit service at their ATM centre
deposit service at their ATM centre.18% of respondents recognize bill payment
and 17% recognize phone banking service at their ATM centre.
From the table and the graph the analysis that can be made are those only 11
respondents that is only 11% of the respondents were highly satisfied with the
ATM service. 39% were very satisfied 43% were satisfied while 7% were less
satisfied. One should work hard to improve this situation.

3.8 Measurement of the secured feeling

How secured you feel
Frequency

Cumulative

Percent

Valid Percent

Highly Satisfied 6

Very Satisfied

36

36

36

42

Satisfied

56

56

56

98

Less Satisfied

99

Not Satisfied

100

Total

100

100

100

Percent

How secured you feel

Highly Satisfied 6%

1% 1% 6%

Very Satisfied 36%

Satisfied 56%
Less Satisfied 1%

36%

Not Satisfied 1%

56%

From the graph and the table it was evident that largest share of respondents
were satisfied with the services of ATM. While people who were highly satisfied
were 36% and highly satisfied were a 6%. However the number of respondents
who were less satisfied and not satisfied was 15 respectively.
1

3.9 Do the ATM centers provide the denomination of currency you require
Provide the denomination of currency
Cumulative

Frequency

Percent

Valid Percent

Always

37

37

37

37

Sometimes

52

52

52

89

Never

11

11

11

100

Total

100

100

100

Percent

Provide the denomination of currency

37% of the respondents are satisfied with the denomination of currency provided
by the ATM centers; they say they always receive the denomination of currency
they want. However 52% of the respondents say they sometimes receives the
denomination of currency they want, while 11% of respondents say they never
get the denomination of currency they want.

3.10 Do the ATM centers run out of cash frequency

Cumulative

Frequency

Percent

Valid Percent

Always

10

10

10

10

Sometimes

41

41

41

51

Never

49

49

49

100

Total

100

100

100

Percent

Do the ATM's run out of cash frequently

10%

Always
Sometimes
Never

49%
41%

The table and the graph suggest that a whopping 49% respondents say ATM
never runs out of cash, while v41% say it sometimes run out of cash compared to
that only a meager 10% say it runs out of cash always.

3.11 Express how you feel about ATM centers

Express feeling
Frequency

Cumulative

Percent

Valid Percent

Highly Satisfied 29

29

29

29

Satisfied

56

56

56

85

Neutral

14

14

14

99

Unsatisfied

100

Total

100

100

100
1

Percent

Express feeling

14%

1%

Highly Satisfied 29 %
29%

Satisfied 56%
Neutral 14%
Unsatisfied 1%

56%

3.12 Cash withdrawal * how much satisfied cross tablation count

How secured you feel
Highly

Very

Cash

Satisfied

Satisfied

withdrawal Yes

11

38

41

11

1
39

2
43

No
Total

Satisfied

Less
Satisfied

Total

97

3
100

Cash Withdrawal
45
40
35

Highly Satisfied

30

Very Satisfied

25

Satisfied
Less Satisfied

20
15
10
5
0

Yes

No

Out of 22 respondents who use balance inquiry facility are 8 satisfied and are 12
very satisfied with ATM service; however 2 respondents are less satisfied with
ATM service.

3.13 Balance transfer * how much satisfied Cross tabulation count

How much Satisfied
Balance

Highly

Very

Satisfied

Satisfied

Transfer Yes
No

11
11

Total

Satisfied

Less
Satisfied

Total

11

22

30
39

32
43

5
7

78
100

Balance Transfer
35
30
Highly Satisfied

25

Very Satisfied
Satisfied

20

Less Satisfied

15
10
5
0

Yes

No

Out of 11 respondents who are highly satisfied with the ATM service of no one
uses balance transfer facility. Out of 22 respondents who use balance transfer
facility 11 are satisfied with ATM service.

CHP.4. THE FUNCTION OF ATM CARD SERVICES

4.1 THE BEGINNING GETTING CASH AT ATMs:

The first ATM cards gave consumers access to their checking, savings, and share
draft accounts only at teller machines owned by their bank, credit union, or
savings and loan. People commonly call this kind of card an ATM card, cash
card, or banking card, or they use the name that their bank, credit union, or
regional network has given to the card.
When regional ATM networks were created, they linked together the ATMs of
different institutions and offered consumers access to their money in other
neighborhoods and nearby cities, towns, and states. (A list of many ATM
networks names and where they operate appears near the end of this brochure.)
At the same time, two national networks -Cirrus and plus - emerged, expanding
ATM card access to cash, first nationwide, then around the world. Currently,
these are the only two brands that offer a full range of ATM services worldwide.
ATM cards provide a convenient way of getting cash, making deposits and
transfers, and verifying account balances. It is also easy to tell where you can use
the card by simply matching the logos on your ATM card with those displayed
on the ATM itself.
4.2 THE NEXT STEP PAYING WITH ATM CARDS:
More recently, many ATM cards have been enhanced so that you can shop with
the cards at merchants that sign up with the same networks that give the cards
1

wide access to ATMs. (A list of many of these shopping networks also appears
near the end of this brochure.) Currently there is only one international service,
called Maestro*, that lets card work at participating merchants both in the United
States and in more than 50 countries.
Grocery stores and gas stations were among the first retailers in the United States
to install the small number pads, also called PIN pads that you may have noticed
at the checkout counter or on the gas pump. It is these devices that make
shopping with many ATM cards possible.
4.3 THE LATEST NEWS SHOPPING WHEREVER SOME MAJOR
CARD BRANDS ARE ACCEPTED:
Another ATM card service makes ATM cards more useful by greatly expanding
the number of retail locations that accept the cards for payment. ATM cards with
the logo of one of two of the major card brands MasterCard or Visa- can be
used to make purchases anywhere these cards are accepted. Today, these kinds of
cards are accepted at some 3 minion places in the United States and 9 million
more worldwide. Currently, these are the only two major card brands that offer
this service.

4.4 LIMITATIONS OF ATM CARD

YOU CAN ONLY SPEND WHAT YOU HAVE: When you use your ATM
card, whether to withdraw cash or make purchases, you are using your own
money that is on deposit at your bank or credit union. Naturally, you can only
use as much money as you have available. If you have an overdraft line of credit
attached to your account and your purchase with the card exceeds the amount
available on deposit, your bank or credit union will charge interest on the
amount you borrow from your overdraft
THERE MAY BE DAILY SPENDING & WITHDRAWAL LIMITS: Many
banks and credit unions set daily limits on ATM purchases and cash
withdrawals, as a deterrent to the use of stolen or fraudulent cards. Often, these
two limits are different and each may vary widely, from a few hundred dollars a
day to the entire amount available in your account. You should ask your bank or
credit union whether your ATM card will have daily withdrawal and spending
limits and, if so, what they will be.
1

While limits of this kind may seem like an inconvenience, they are
there to safeguard you and your money from unauthorized use of your account.
They can also serve to govern your daily spending, helping you to be more
disciplined in managing your money and your spending habits.
RECORD KEEPING REQUIREMENTS:
ATM cards make it possible to overdraft your bank accounts so they require that
you keep careful record of your spending. With an ATM card it is vital to know
what your checking account balance is at all times. The overdraft fees associated
with bank accounts are high enough that the consequences of overdrafting even
by a small amount are quite serious.
HIDDEN FEES:
Hidden fees seen to be lurking around every corner of the financial world. If you
are not using an ATM that is affillated with your bank or credit union then you
will likely have to pay a fee. Although many banks strive to have conveniently
located ATM machines. Using any ATM machine not associated with your bank
can deplete your bank account balance.

LOST OR STOLEN CARDS:

Although there are protections out there for identity theft victims, when an ATM
card is lost or stolen it can spell disaster for the card owner. ATM card fell into the
wrong hands and be used to rob your account or make purchases without your
knowledge. A the if could use your ATM card as a Credit card by forging your
signature or online purchases simply by knowing your card number and expiration
date. Bank do not offer the same protections on ATM cards as Credit card so check
your financial institution for its policy on unauthorized transactions.
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 you shop with
cash you know instantly where you stand financially and how much money
1

remains with a debt or ATM card it becomes difficult to monitor how much is
being spent and how much money is left until the dreaded card decline or you
are hit with an overdraft charge.

4.5 ADVANTAGES OF ATM CARD

USING YOUR ATM CARD TO SHOP MATCHING THE LOGOS:
If you have the logo of one of these card brands on your ATM card and want
to use it for shopping, your ATM card basically works like a check. This kind
of card is often called a money card, cash and check card, check card, or debit
card, or it can have a special name given to it by your bank or credit union.
Regardless of its name, this kind of card is still also your ATM card.
Typically, this kind of card does not require the use of a PIN to make a
purchase. You may already carry one of these cards. Look at your card to find
out.
Just as the various logos that appear on ATM cards tell you where they can be
used to get cash or make banking can be used to make purchases. Simply
match the logos on the store or at the cash register or just ask whether the
1

store accepts your ATM card. Depending on which logos you find on your
card and whether the store has installed PIN pads, your purchases can be
handled in your PIN, just as you would with a credit card.
MAKING A PURCHASE:
Lets say you have planned to buy a desk lamp. You need all your cash for
other things and dont have your checkbook with you. At the entrance to the
store, you notice an ATM network logo that matches the logo on you card. You
decide to use your ATM card to pay.
When you present the lamp to the cashier, you will be asked how you would
like to pay for the purchase. You offer your ATM card. The cashier will confirm
that your card is accepted by the store, and if it is, the following will occur:
1. You will be asked to slide your card through a dot that reads the
information contained in the magnetic stripe on the back of your card.
2. The cashier will then enter the amount of the purchase.
3. You will punch in your PIN, or secret code.
4. The cashier will press a key that initiates an automatic phone call to your
bank or credit union. This confirmed, your bank or credit union
automatically deducts the purchase amount from your account, just like a
check. You will receive a receipt of the transaction, if you want one, when
the sale is completed. Make sure you record and subtract this amount from
your account immediately.
AN ATM CARD WILL BE ACCEPTED FAR MORE READILY THAN
AN OUT-OF-STATE CHECK:
When you use an ATM card to make purchases, its easy to tell where it is
accepted just by matching the logos on your card with those at stores that
accepted the cards. And the number of locations that accept ATM cards is
constantly expanding, enabling you to stop in more and more places without
cash and cheque.
SMARTER ABOUT ATM CARDS:
As you read this brochure, youll gain a better understanding of how to take
advantage of the conveniences and features of shopping with your ATM
1

card. And youll find the information you need to use the new service
wisely. If you have one of the more than 200 minion ATM cards in
circulation today in the United States, yo0u may want to take it out of your
wallet and refer to it as you read along.
USING AN ATM CARD CAN GIVE YOU THE TOOLS TO BE A
SMARTER MONEY MANAGER:
All ATM card purchases and transactions appear as line items on the
monthly account statement you receive from your bank or credit union.
Youll find the date of purchases, the transaction total, and the merchants
name. When combined with the receipt that accompanies each purchase,
these clear and complete records make it easier to track your spending than
when you use cash alone.
SMART MONEY MANAGEMENT HABITS:
Your ATM cards can be a useful tool in helping you develop good money
management habits if you follow these five simple steps:
Established a monthly budget.
1. Stick to your spending limits and track your expenses routinely and
carefully.
2. Save your sales and ATM receipts and immediate- deduct purchases and
other transactions from your chequebook or your account register. Be sure
to note any fees.
3. Promptly balance your chequebook against your monthly account
statement, which lists all of your purchases and fees.
4. Use your monthly itemized statement as a systematic way to manage
your spending habits, and determine whether your budget is realistic.
ATM CARD PURCHASES CAN OFFER CONVENIENCE WITHOUT
INTEREST CHARGES:
If you use your ATM card to shop, you can get all the convenience of
using a card for purchases, but without being charged interest. However, if
1

you have an ATM card thats attached ton a checking account with an
overdraft line of credit and you overdraw your account using the card,
your bank or credit union will charge interest on the amount you
overdraw, just as they would with a check. If your overdraft protection is
provided by a link to your savings or other account, you may not incur
interest charges. Check with your bank or credit union.
WHETHER YOU USE YOUR PIN OR SIGN A SALES SLIP, YOURE
ASSURED CONFIDENTIALITY:
The only information provided to the store by your bank or credit union
when you make a purchase with your ATM card is whether or not the
transaction is approved and the amount of the purchase. The store does not
have access to your account information, address or telephone number, or
any other information that may be printed on your check.
WHEN A MAJOR CREDIT CARD LOGO IS ON YOUR ATM CARD:
If you have an ATM card that also has on it one of two of the major credit
card logos mentioned previously, your purchase will be handled as if you
were using a credit card, except for three important differences:
I. First, the purchase amount will be deducted automatically from
your account like when you write a check rather than being
II.

billed to you at the of the month.

Secondly, typically, youll pay not interest charges, since youre
using your own money on deposit, not borrowing it. (However,
there may be other fees associated with using this card, an issue

III.

addressed later in this brochure.)

Third, you will usually sign for the purchase instead of punching in
your PIN. However, since this is your ATM card, if a store has
installed PIN pads to accept your PIN, and it accepts one of the
other logos on your card, the store clerk may ask to use your PIN

instead of signing.
ATM CARDS CAN GIVE YOU MORE CONTROL IF USED WISELY:
1

With an ATM card and a PIN or personal identification number you can
virtually set your own branch hours depositing and withdrawing money
from your accounts whenever you wish at your bank or credit union. Whats
more ATM cards already give you access to your money at ATMs located not
only at all of your banks locations, but also at other banks and in stores,
airports, office buildings, and street corners across the United States and
worldwide.
YOUR ATM CARD IS BECOMING EVEN MORE USEFUL:
But wide access to ATMs is just the beginning. Technology is enabling
banks and credit unions to introduced new services that allow you to pay for
things by making your ATM card work like a check. This latest
improvement can offer conveniences and money management benefits over
cash and checks.
SO KEEP TRACK OF YOUR SPENDING:
Always make sure to keep your receipts, and record your purchases in your
checkbook immediately to prevent overdrawing your account. Its important
to remember that regardless of whether you see your PIN or sign your
name, all of your withdrawals and purchases will be automatically deducted
from your account.
CHP.5 SAFETY AND SECURITY OF ATM

5.1 HOW TO GET A BASIC ATM CARD & ONE YOU CAN USE TO
SHOP
IF ITS NOT OFFERED AUTOMATICALLY, YOU CAN ASK ABOUT IT:
Most banks and credit unions across the country offer ATM cards. They are
usually connected to a checking or share draft account. When you open an
account, you may automatically be given an ATM card. But if you havent been
offered a card, you can ask for one.

You may also want to ask about any additional services available on the card.
For example, most ATM cards can be used for cash withdrawals and other
transactions at ATMs in the United States and around the world. Your bank or
credit union may offer with your account the additional service that allows you
to see your ATM card to make purchases by using your PIN or signing a receipt.
5.2

YOU MAY NEED TO APPLY FOR SOME ATM CARDS:

In the case of an ATM card with a credit card logo on it, your ability to obtain
this card will depend on the practices of the individual bank or credit union.
The list below contains the kinds of things a bank or credit union considers to
determine whether you qualify for this kind of service. You may be required to
provide additional information on an application and undergo a credit check.
The length of your relationship with the bank or credit union
The average balance and status of your account
The number of times per year, if any, you overdraw your account
The number of banking products and services you use
Your credit history
5.3

COSTS INVOLVED IN USING ATM CARDS

The use of ATM cards naturally involves costs to provide the services. As a
result, there may be fees associated with your use of the card. These vary,
depending on your relationship with the institution and whether you are
withdrawing cash or making purchases.
If a fee is charged at all, it can vary widely. For example, you could be charged a
few cents, such as a dime, every time you use the card, or you could be charged a
flat monthly fee, such as one dollar per month, or a combination of such fees. In
some cases, fees are waived on the amount you keep on deposit at your bank or

credit union. But, keep in mind that fees can be higher or lower than those cited
here. Check with your bank or credit union.
5.4

FEES MUST BE DISCLOSED TO YOU:

Along with knowing your available balance, you should be aware of any charges
for using the card. Fees are established band charged by the banks and credit
unions that issue the ATM cards. If a fee is charged, your bank or credit union
must filly detail these fees when get your card. Every time a fee is charged by
the bank or credit union issuing the card, the feel with appear on your monthly
statement.
When an ATM card is used to make purchases, a retailer may add a free to your
purchase total. If this happens, the store is required by law to disclose this to you
in a display at the checkout counter. In this case, the fee is added to your
purchase amount, not listed separately on your statement.
5.5

QUESTIONS TO ASK WHEN YOU SIGN UP FOR A CARD:

Before you use your ATM card to withdraw cash or shop, you should ask your
bank or credit union about the costs associated with ownership and use of the
card. Here are some questions you might ask:
What are the monthly or annual fees for this card?
What are the per use fees when using this banks or other banks or credit
unions ATMs?
How can I avoid any of these fees?

5.6

SAFEGUARD THAT PROTECT YOUR CARD AND ITS USE

1

Two features can make using ATM cards safer than cash and checks.
First, their use is covered by federal regulations that protect both consumers and
the institutions that issue the cards.
Second, technology protects the information about your account.
Its smart to be aware of these regulations and protections. Here a brief summary
of the safeguards that come with your ATM card and what you must do to take
advantage of them.
5.7

YOURE PROTECTED IF YOUR CARD IS LOST OR STOLEN

AND IF SOMEONE USES YOUR CARD FRADULENT.

If you report a lost or stolen ATM card within two business days of discovering
the loss or theft, and report immediately any unauthorized uses of your ATM
card that you find on your monthly statement, your liability is limited by federal
regulations to $50. If you do not report the loss or theft within two days, you
could be responsible for up to$500.
If you suspect that your ATM card has been used fraudulently, you must report it
to your bank or credit union within 60 days of receiving the statement on which
the questionable activity appears. If you dont act promptly, you could be liable
for the full amount that the unauthorized user was able to withdraw.
5.8

YOURE PROTECTED FROM BOOKKEEPING ERRORS:

Federal regulations also protect you against errors that may occur in your bank
account during or as the result of an electronic transfer of funds. Such errors
could include:
Omission of a transaction on your statement. For example, a deposit you
make at an ATM does not appear on your next statement.

Incorrect amount deducted from your account. For example, you

discover that a $14.25 purchase that you made last month your ATM card

appears on your ATM card appears on your monthly statement as $142.50.

Bookkeeping error. You pay for your $36 grocery order with your ATM
card and find that the total amount has been deducted from your account
twice.

Receipt of incorrect amount. You request $100 from your checking

account at an ATM, but receive only $90.
If you suspect that a mistake has been made in your account, immediately
call the bank or credit union where you have the account. You may be
asked to follow up your phone call with a written report of the suspect
error.

CHP.6. SWOT ANALYSIS

The most popular technique for analyzing the strategic position of ac ATM
business unit and its environment is done by a study of SWOT ANALYSIS. The
external environment impact the business by both the opportunities and threat
(OT). The internal factor specific to the organization have a mix of both strength
and weakness (SW).
THE SWOT MATRIX
Once the SWOT ANALYSIS is complete the business unit organization must:
1.
2.
3.
4.

Build on strengths
Resolve weakness
Exploit opportunities
Overcome threats

The resultant strategies must then be filtered and moulded to form the basis of a
realistic strategic plan. SWOT ANALYSIS even through a good tool is extremely
subjective and should ideally be used with other analysis like PESTLE to form
and select the best available strategy.
Ex: SWOT ANALYSIS of ICICI BANK

THE SWOT MATRIX

INTERNAL

1
2
3

STRENGTH

WEAKNESS

Strong brand equity

Poor reputation in rural areas

Extensive distribution

Supply chain not evolved

Strong research and development

base

5
6

No innovative changes in ATM

First mover advantage

Lack of patent protection

Capacity utilization

Operational inefficiency

External
OPPORTUNITIES

THREATS

Growing Market

Substitute market

Free market economy

Trade barriers

Strong currency

High cost of fund

Favourable demographic

Mature market

CHP.7. BANKERS VIEW ON ATM

7.1 ICICI BANK

Information sought from Mr. Sachin Jadhav
1. Major recent frauds in ATMs
If the ATM card is missed and the cardholder have written the code on the
pouch then the person who gets it can misuse it. Its a kind of fraud as the
person can take out the money from the internet. The cardholder must
inform the police and must lodge an FIR.
2. How location of ATMs are decided?
It is decided on the basis of the customer base. It is decided by the
management team.
3. Do you provide ATM sharing facility?
Yes they do provide ATM sharing facility. They provide facilities to the
customers of HDFC Bank, DENA Bank etc.
4. ATM service charges
They charge 28 Rs. from their customers as service charges.
5. CCTV cameras in ATMs
Yes they have fitted CCTV cameras in their ATM centers.
6. How cash is loaded in ATM machines
it consists of sockets of various denominations loading and unloading
takes place from back office and have some specific programming for it
they have inbuilt programs.
7.2 DHANLAXMI BANK
Information sought from Mr. Abdul Rahman

1. Major recent frauds in ATMs

No any cases of frauds uptil now took place.
2. How location of ATMs are decided?
It is decided on the basis of the customer base. It is decided by the
management team.
3. Do you provide ATM sharing facility?
Yes they do provide ATM sharing facility.
4. ATM service charges
They not charge anything from their customers as service charges. They
provide this facility free of cost.
5. CCTV cameras in ATMs
Yes they have fitted CCTV cameras in their ATM centers.
6. How cash is loaded in ATM machines
They appoint the CMS (Cash Management Service) who loads the cash in
the ATM machines.
7. On what technology does the ATM works?
It does works through the ATM networks such as Euronet. They usually
work through the VISA and MASTERCARD.

7.3 AXIS BANK

Information sought from Mr. Darshak shah
1. Major recent frauds in ATMs
No any cases of frauds uptil now took place.
2. How location of ATMs are decided?
It is decided on the basis of the customer base. It is decided by the
management team.
3. Do you provide ATM sharing facility?
Yes they do provide ATM sharing facility. They provide facilities to all the
banks except the co-operative banks.
4. ATM service charges
They do not charge anything from their customers as service charges.
They have card issuing charges as 107 Rs. that is maintenance fees.
5. CCTV cameras in ATMs
Yes they have inbuilt CCTV cameras in their ATM centers.
6. How cash is loaded in ATM machines
1

They appoint the Cash Management service (CMS) who load 20 lakhs on
daily basis in their ATM machines.
7. On what technology does the ATM works?
It does works on the dibold technology. The two major ATM networks are
VISA and MASTERCARD
Summary
One of the important services provided by the banks today is of ATM
To briefly summarize the process, an automatic teller machine or ATM allows a
bank customer to conduct their banking transactions from almost every other
ATM machine in the world. In the introductory stages, of the ATM, Don Wetzel
invented the first successful and modern ATM in the USA. However he was not
the first inventor to create an ATM. In 1939, Luther George Simjian started
patenting an earlier and not so successful version of an ATM. The concept of the
modern ATM first began in 1968, a working prototype came about in 1969 and
Docutel was installed a patent in 1973. The first working ATM was installed in a
New York based chemical bank

FINDINGS AND CONCLUSION

1

People want the ATM centers to be very close to their houses or place of work.
People want that they should not be made to wait in queues in front of ATM
centers.
If possible the banks should improve the software they use and reduce the time
required by the customers.
ATM centers do not provide additional services like cash deposits, cheques
deposits, bill payments, etc, at all its centers, which many people want but they
dont get it and leads to their dissatisfaction and wherever it is available it is
charged.
I have also found in this survey that many of the respondents felt that they were
feeling secured using the ATM card, services and this has led to increased
satisfaction level of these respondents which is a good sign.
I also found from this survey that the almost 70% people are satisfied with the
number and location of the ATM centers. But they still insisted that the number
should be increased to give enhanced service and satisfaction to its customers.
People were happy to say that the ATM centers provides the currency in the
denomination they want and this was as good as dealing with the cashier of the
bank where you can tell him which denomination you want.
Another good finding from this survey was that the ATM centers of bank rarely
run out of cash even though it is one of the largest used ATM centers. About 49%
of the respondents said that it never runs out of cash.

RECOMMENDATIONS
The findings and the conclusions reveal that there is a lot of changes which can
be brought about to improve the perception and satisfaction of the customers
towards banks ATM centers.
I recommend that,
Bank should increase the number of ATM centers and at strategic positions.
Software used by the bank should be updated and fast so that people are not
made to wait in the queue.
Bank can bring all its services on the ATM machines.
Facilities like cash deposit should also start at the ATM centers.
To increase the customer base and the customer satisfaction the ATM facility
should be made as secured and safe as possible. ICICI ATM is one of the safest
but still there is scope for improvement.