6 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, it‟s 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.
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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, it‟s 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.
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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 other‟s 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.
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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.
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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 user‟s 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.
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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 Siemens-
Nixdorf 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.
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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 bank‟s 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
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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