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ATM REVOLUTION IN INDIA

Index
SR. NO. CH. 1. PARTICULARS INTROUCTION TO ATM 1 INTRODUCTION 2 HISTORY 3 ATM REVOLUTION IN BANKING INDUSTRY 8 10 11
PAGE NO.

CH. 2.

NATURE OF ATMs 1 ATM NETWORKS 2 ATM ASYNCHRONOUS TRANSFER MODE 3 PRINCIPLE OF ATM 4 WHY ATM? 5 THE ATM LAYER 6 TYPES OF ATM CELL 7 ATM SWITCHES AND CROSS CONNECTS 8 FUNCTIONS AND MECHANISMS 9 ATM ON INTERNET 15 16 16 17 17 19 20 24 25

CH. 3.

ATMS SHARED BY A CONSORTIUM OF BANKS 1 ATMS SHARED BY A CONSORTIUM OF BANKS 2 SWADHAN 3 FEATURES OF ATM 4 SCOPE FOR ATM IN INDIA 5 PURPOSE FOR USING ATM CARD 6 HOW MUCH TIME CUSTOMER SPENDS WAITING IN THE QUEUE AT ATM CENTER 7 ADDITIONAL SERVICES PROVIDED BY ATM 8 MEASUREMENT OF THE SECURED FEELING 26 27 28 29 30 31 32 34

ATM REVOLUTION IN INDIA


9 DO THE ATM CENTERS PROVIDE THE DENOMINATION OF CURRENCY YOU REQUIRE 10 DO THE ATM CENTERS RUN OUT OF CASH FREQUENCY 11 EXPRESS HOW DO YOU FEEL ABOUT ATM CENTERS 12 CASH WITHDRAWAL HOW MUCH SATISFIED CROSS TABLATION COUNT 13 BALANCE TRANSFER HOW MUCH SATISFIED CROSS TABLATION COUNT 35 39 35

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37

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CH. 4.

THE FUNCTIONS OF ATM CARD SERVICES 1 GETTING CASH AT ATMS 2 PAYING WITH ATM CARDS 3 SHOPPING WHEREVER SOME MAJOR CARD ARE ACCEPTED 4 LIMITATIONS OF ATM CARD 5 ADVANTAGES OF ATM CARDS 40 40 41 42 44

CH.5.

SAFETY AND SECURITY OF ATM 1 HOW TO GET A BASIC ATM CARD 2 APPLY FOR ATM CARD 3 COST INVOLVED IN ATM CARD 4 FEES MUST BE DISCLOSED TO YOU QUESTIONS TO ASK WHEN YOU SIGN UP AND 5 ITS USE 6 SAFEGUARD THAT PROTECT YOUR CARD AND ITS USE 7 FRAUDULENT USE OF CARD 8 YOU ARE PROTECTED FROM BOOK KEEPING ERRORS 51 51 51 50 49 49 49 50

CH. 6.

SWOT ANALYSIS

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CH. 7. BANKERS VIEW ON ATM 1 ICICI BANK 2 DHANLAXMI BANK 3 AXIS BANK 55 56 57

SUMMARY FINDINGS AND CONCLUSIONS RECOMMENDATIONS BIBLIOGRAPHY AND WEBLIOGRAPHY

58 59 60 61

ATM REVOLUTION IN INDIA

ATM REVOLUTION IN INDIA

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.

ATM REVOLUTION IN INDIA


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.

ATM REVOLUTION IN INDIA

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.

ATM REVOLUTION IN INDIA

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.

ATM REVOLUTION IN INDIA

Important reason for possessing ATM Card


Dichotomy Label Bank offered free Emergency purpose Availability of many ATM centers 24 hours availability of cash Other reasons Total Responses 42 2 180 23.1 1.1 100 42 2 182 50 27.5 50 Count 34 54 Responses 18.7 29.7 % of cases 34 54

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 24-hour accessibility as reason for processing ATM card. According to 34% of respondents the processed the ATM card as bank offered the card free.

ATM REVOLUTION IN INDIA

Reason for possessing ATM Card


1% 19% Bank offered free 19% Emergency purpose 30% Availability of many ATM centeres 27% 30% 27% 24 hours availability of cash 23% Other reasons 1%

23%

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. The ATM network 2. The credit card networks, 3. The Automated Clearing House (ACH) networks and 4. 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.
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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.

ATM REVOLUTION IN INDIA

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.

ATM REVOLUTION IN INDIA


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)

ATM REVOLUTION IN INDIA

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 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.

ATM REVOLUTION IN INDIA

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. 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:

ATM REVOLUTION IN INDIA


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.

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)

ATM REVOLUTION IN INDIA

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 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.

ATM REVOLUTION IN INDIA

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:
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.

ATM REVOLUTION IN INDIA

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 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. 1

ATM REVOLUTION IN INDIA

Cross Connects (VP Switches):


ATMs cross-connects terminate incoming paths and transfers them -along with all the channels in the 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. path-to another, outgoing path the individual

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 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
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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.

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
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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 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
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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 headerspecific 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.

ATM REVOLUTION IN INDIA

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. Access Controls (connection administration control). Usage Parameters Control (UPC). Selective discarding of cell. Traffic Shaping. Sending Congestion messages to remote station.

ATM REVOLUTION IN INDIA

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:


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.

ATM REVOLUTION IN INDIA

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

ATM REVOLUTION IN INDIA

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.

ATM REVOLUTION IN INDIA

3.2 SWADHAN

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 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 SWADHAN, the banks customers are never far

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
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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 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.
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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.

ATM REVOLUTION IN INDIA

3.4 RELATED ARTICLE SCOPE for ATM Growth in India


Mumbai, May 30: when we saw a man in a dhoti in a remote town in South India withdraw money from an ATM, tuck it in the folds and ride away on his cycle, we were truly inspired by the ATM growth in the country. These were the words with which ICICI Bank general manager OP Srivastava, described the scope of ATM growth in India. The focus in the ATM in India conference on Thursday was on increasing the ATM network in India on a large scale. Said FSS managing director Nagaraj MyLandla:Currently, India is positioned as the second fastest country in ATM growth. ATMs are growing three times more in off-site premises compared to on-site premises. Added Euronet India MD Loney Antony: ATM disbursements have overtaken the amount utilized by credit cards in comparison. Other bankers strongly voiced the need for banks to come together and form a consortium of a shared ATM network for the betterment of the entire economy. Citing valuable points and examples, the financial top brass urged the banking community to drop the ATM network within the country.

The need of sharing ATMs was highlighted by Global Trust Bank president PC Narayan. A shared network will tremendously cut costs within banks, he said,

ATM REVOLUTION IN INDIA


adding that there was no need for a concentration of ATMs in one area, when all the work could be done by a shared ATM network.

Furthermore, Mr Narayan said that between the banks who have a shared network, there must be equal winnings for all. Banks must also have an equal platform on the tech front, while the service provider must have a disaster recovery program, he added.

UTI Bank senior VP Hemant Kaul felt that the days of viewing ATM as a propreitory tool was over. Banks must generate revenue from ATMs and for this to happen, a collective effort must be made, he said. Mr Kaul also gave three pointers in ATM cost-cutting. Space can be reduced by installing hole in the world ATMs, security guards who man the ATMs can be cut down, and networking obviously is a big cost-cutter, he advised. Moving on ABN Ambro Bank vice-president Ravishankar Venkataraman, stressed on the need to increase the number of ATMs in the country, while at the same time stating that a networked partnership was a key to growth. He added, Revenues can also be generated by displaying advertisements on the ATM screen or around it, although currently, there is a restriction in that area.

3.5 Purpose for using ATM card


Dichotomy Label Cash withdrawal Balance Inquiry Name Count Response % of Cases

PURCH

97

65.5

97

PUR_BAL

24

16.2

24

ATM REVOLUTION IN INDIA


Balance Transfer Others PUR_BTRF PUR_OTH 22 5 14.9 3.4 22 5

Purpose for using ATM card


3% 15% Cash withdrawal 66% Bal. Inquiry 16% 16% 66% Bal. Transfer 15% Others 3%

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.

ATM REVOLUTION IN INDIA

3.6 How much time customer spends waiting in the queue at ATM centre
Time spend in queue
Frequency Less then 5 min 5 to 10 min More than 10 min Total Percent Valid Percent Cumulative Percent 62 97 100

62 35 3 100

62 35 3 100

62 35 3 100

Time spend in queue


3%

35%

Less then 5 min 62% 5 to 10 min 35% 62% more than 10 min 3%

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.
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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 ADD_CD ADD_CHQ ADD_BP ADD_PHB ADD_OTH Count 71 54 34 33 1 193 Response 36.8 28 17.6 17.1 0.5 100 % of Cases 72.4 55.1 34.7 33.7 1 196.9

ATM REVOLUTION IN INDIA

Additional Service
1% 17% 36% Cash Deposit 36% Cheque Deposit 28% Bill Payment 18% Phone Banking 17% Others 1% 28%

18%

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.

ATM REVOLUTION IN INDIA

3.8 Measurement of the secured feeling How secured you feel


Frequency Highly Satisfied Very Satisfied Satisfied Less Satisfied Not Satisfied Total Percent Valid Percent 6 36 56 1 1 100 Cumulative Percent 6 42 98 99 100

6 36 56 1 1 100

6 36 56 1 1 100

How secured you feel


1% 1% 6% Highly Satisfied 6% Very Satisfied 36% 36% 56% Satisfied 56% Less Satisfied 1% Not Satisfied 1%

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

ATM REVOLUTION IN INDIA


were 36% and highly satisfied were a 6%. However the number of respondents who were less satisfied and not satisfied was 15 respectively.

3.9 Do the ATM centers provide the denomination of currency you require Provide the denomination of currency
Frequency Always Sometimes Never Total 37 52 11 100 Percent 37 52 11 100 Valid Percent 37 52 11 100 Cumulative Percent 37 89 100

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.

ATM REVOLUTION IN INDIA

3.10 Do the ATM centers run out of cash frequency


Frequency Always Sometimes Never Total 10 41 49 100 Percent 10 41 49 100 Valid Percent 10 41 49 100 Cumulative Percent 10 51 100

Do the ATM's run out of cash frequently


10%

Always 49% Sometimes 41% Never

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.

ATM REVOLUTION IN INDIA

3.11 Express how you feel about ATM centers Express feeling
Frequency Highly Satisfied Satisfied Neutral Unsatisfied Total Percent Valid Percent 29 56 14 1 100 Cumulative Percent 29 85 99 100

29 56 14 1 100

29 56 14 1 100

Express feeling
1% 14% 29% Highly Satisfied 29 % Satisfied 56% Neutral 14% Unsatisfied 1% 56%

ATM REVOLUTION IN INDIA

3.12 Cash withdrawal * how much satisfied cross tablation count


How secured you feel Highly Cash withdrawal Yes No Total 11 Satisfied 11 Very Satisfied 38 1 39 Satisfied 41 2 43 7 Less Satisfied 7 Total 97 3 100

Cash Withdrawal
45 40 35 30 25 20 15 10 5 0 Yes No Highly Satisfied Very Satisfied Satisfied Less Satisfied

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.

ATM REVOLUTION IN INDIA

3.13 Balance transfer * how much satisfied Cross tabulation count


How much Satisfied Highly Balance Transfer Yes No Total 11 11 Satisfied Very Satisfied 9 30 39 Satisfied 11 32 43 Less Satisfied 2 5 7 Total 22 78 100

Balance Transfer
35 30 25 20 15 10 5 0 Yes No Highly Satisfied Very Satisfied Satisfied Less Satisfied

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.

ATM REVOLUTION IN INDIA

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.
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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 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.

ATM REVOLUTION IN INDIA

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
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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. 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

ATM REVOLUTION IN INDIA


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 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.

ATM REVOLUTION IN INDIA

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 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

ATM REVOLUTION IN INDIA


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 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.

ATM REVOLUTION IN INDIA

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:

ATM REVOLUTION IN INDIA


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 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 billed to you at the of the month. II. 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 addressed later in this brochure.)

ATM REVOLUTION IN INDIA

III.

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:


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.
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CHP.5 SAFETY AND SECURITY OF ATM

ATM REVOLUTION IN INDIA

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
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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.
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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


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.
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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.
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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.

ATM REVOLUTION IN INDIA

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. Build on strengths 2. Resolve weakness 3. Exploit opportunities 4. 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

ATM REVOLUTION IN INDIA

THE SWOT MATRIX


INTERNAL
STRENGTH 1 Strong brand equity 2 Extensive distribution 3 Strong research and development base 5 First mover advantage 6 Capacity utilization WEAKNESS Poor reputation in rural areas Supply chain not evolved No innovative changes in ATM Lack of patent protection Operational inefficiency

External
OPPORTUNITIES
1 Growing Market 2 Free market economy 3 Strong currency 4 Favourable demographic

THREATS
Substitute market Trade barriers High cost of fund Mature market

ATM REVOLUTION IN INDIA

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
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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?
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ATM REVOLUTION IN INDIA


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 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
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ATM REVOLUTION IN INDIA

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

ATM REVOLUTION IN INDIA

FINDINGS AND CONCLUSION


This project was a great experience for me and I really learnt a lot of things from this project. This project gave us the knowledge and information about ATM machines, banks offering ATM services and also about the people and their attitudes and perceptions towards ATMs.

I have found,

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.

ATM REVOLUTION IN INDIA


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.

ATM REVOLUTION IN INDIA

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.

ATM REVOLUTION IN INDIA

Bibiliography

BOOK REFERENCES
Innovation in banking & insurance Financial services management DIPAK ABHYANKAR NEWSPAPER
TIMES OF INDIA DNA (DAILY NEWS ANALYSIS)

ATM REVOLUTION IN INDIA

WEBILIOGRAPHY:
1. http://www.icicibank.com 2. http://inventors.about.com 3. http://www.techmall.com 4. http://www.swadhan.com 5. http://www.dhanbank.com 6. http://www.axisbank.com