Escolar Documentos
Profissional Documentos
Cultura Documentos
Project on
P.A.J.B.S.U.Mandal
B.N.N.College (A.S. & C),Bhiwandi, Dist Thane.
Pin Code-421302
P.A.J.B.S.U.Mandal
B.N.N.College (A.S. & C),
Bhiwandi, Dist Thane. 421302
C E R T I F I C AT E
This is to certify that Mr. /Miss. MALDE BRINDA DINESH
of Bachelor of Commerce (Banking & Insurance) Semester
V 2010-2011 has successfully completed the project on ATM
REVOLUTION IN INDIA under the guidance of Prof.
PRABHA PARDESI.
------------------------------Prof. U.D.Kadam
( Course coordinator )
----------------------------U.D.Kadam
(I/C Principal)
----------------------------(External Examiner)
DECLARATION
I, MALDE BRINDA DINESH student of B.Com. Banking
and Insurance semester V 2010-2011 hereby declare that I
have completed the project titled ATM REVOLUTION IN
INDIA. The information submitted is true and original to the
best of my knowledge.
ACKNOWLEDGEMENT
I would like to express my sincere gratitude towards
project guide Mrs. Prabha Pardesi without her invaluable
guidance it would not have been possible to complete the
project on time. I would to express deep seen of gratitude
towards my parents who have encouraged me for higher
studies
I would like to express my deep regards to the principal
U.D.Kadam. I would also like to take this opportunity to
thank those people without the help of whom it would not have
been possible to complete this project successfully.
Index
SR. NO.
CH. 1.
PARTICULARS
INTROUCTION TO ATM
1 INTRODUCTION
2 HISTORY
3 ATM REVOLUTION IN BANKING INDUSTRY
8
10
11
NATURE OF ATMs
ATM NETWORKS
ATM ASYNCHRONOUS TRANSFER MODE
PRINCIPLE OF ATM
WHY ATM?
THE ATM LAYER
TYPES OF ATM CELL
ATM SWITCHES AND CROSS CONNECTS
FUNCTIONS AND MECHANISMS
ATM ON INTERNET
15
16
16
17
17
19
20
24
25
CH. 2.
1
2
3
4
5
6
7
8
9
CH. 3.
1
2
3
4
5
6
7
8
9
10
11
12
13
CH. 4.
PAGE NO.
26
27
28
29
30
31
32
34
35
39
35
36
37
39
40
40
41
CH. 6.
CH. 7.
42
44
49
49
49
50
50
51
51
51
53
55
56
57
58
59
60
61
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
8
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 offpremises 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.
10
11
Count
Responses
% of cases
34
18.7
34
54
29.7
54
50
27.5
50
42
23.1
42
1.1
Total Responses
180
100
182
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.
19%
27%
Other reasons 1%
30%
12
ATM Magazine
An online magazine aimed at the ATM industry, where you
can read about the latest innovations in ATM technology.
13
14
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.
15
16
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.
18
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:
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.
19
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.
Switching Elements:
Matrix structure:
21
Switching Elements
Multiplexing:
Based
on
Time
Division
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
22
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
Networks
And
Congestion
Control
In
ATM
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
24
25
26
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 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
27
28
29
30
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
31
15%
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.
Percent
Valid Percent
Cumulative
Percent
Less then 5
min
62
62
62
62
5 to 10 min
35
35
35
97
More than 10
min
100
Total
100
100
100
32
3%
35%
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.
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.
Name
Count
Response
% of Cases
Cash Deposit
ADD_CD
71
36.8
72.4
Cheque
Deposit
ADD_CHQ
54
28
55.1
Bill Payment
ADD_BP
34
17.6
34.7
Phone
Banking
ADD_PHB
33
17.1
33.7
Others
ADD_OTH
0.5
193
100
196.9
Total
Response
33
Additional Service
17%
1%
36%
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.
34
Percent
Valid Percent
Cumulative
Percent
Highly Satisfied
Very Satisfied
36
36
36
42
Satisfied
56
56
56
98
Less Satisfied
99
Not Satisfied
100
Total
100
100
100
1% 1% 6%
Less Satisfied 1%
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.
35
Percent
Valid Percent
Cumulative
Percent
Always
37
37
37
37
Sometimes
52
52
52
89
Never
11
11
11
100
Total
100
100
100
Percent
Valid Percent
Cumulative
Percent
Always
10
10
10
10
Sometimes
41
41
41
51
Never
49
49
49
100
Total
100
100
100
36
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.
Percent
Valid Percent
Cumulative
Percent
Highly Satisfied
29
29
29
29
Satisfied
56
56
56
85
Neutral
14
14
14
99
Unsatisfied
100
Total
100
100
100
37
Express feeling
1%
14%
Highly Satisfied 29 %
29%
Satisfied 56%
Neutral 14%
Unsatisfied 1%
56%
Yes
Highly
Satisfied
Very
Satisfied
Satisfied
Less
Satisfied
Total
11
38
41
97
11
1
39
2
43
3
100
No
Total
38
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.
39
Highly
Satisfied
Yes
No
11
11
Total
Very
Satisfied
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.
40
41
42
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
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.
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.
43
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.
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.
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 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.
45
USING AN
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
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.
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.
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
47
48
53
54
WEAKNESS
Extensive distribution
6 Capacity utilization
Operational inefficiency
External
OPPORTUNITIES
THREATS
1 Growing Market
Substitute market
Trade barriers
3 Strong currency
4 Favourable demographic
Mature market
55
2.
3.
4.
5.
6.
56
2.
3.
4.
5.
6.
7.
57
2.
3.
4.
5.
6.
7.
58
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
59
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.
61
Bibiliography
BOOK REFERENCES
Innovation in banking & insurance
Financial services management DIPAK ABHYANKAR
NEWSPAPER
TIMES OF INDIA
DNA (DAILY NEWS ANALYSIS)
WEBILIOGRAPHY:
1.
2.
3.
4.
5.
6.
http://www.icicibank.com
http://inventors.about.com
http://www.techmall.com
http://www.swadhan.com
http://www.dhanbank.com
http://www.axisbank.com
62