A NETWORK OF ATMS WITH SPECIAL REFERENCE TO AXIS BANKS

SYNOPSIS
Chapter 1 Introduction Need for the study Objective of the study Methodology Significance of the study Limitations Chapter 2 AXIS BANK PROFILE History of the Bank Development Significant milestones

Chapter 3 HISTORY OF ATM Invention of ATM Types of ATM cards Working of ATM Parts of ATM How to use an ATM Uses of ATM Advantages and disadvantages

CHAPTER 4 A THEOROTICAL FRAMEWORK AND PROFILE OF BANKS COVERED UNDER STUDY

CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

CHAPTER 6 FINDINGS, SUGGESTIONS AND CONCLUSIONS Annexure Questionnaire Bibliography

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Chapter 1 INTRODUCTION Introduction Need for the study Objective of the study Methodology Limitations

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CHAPTER 1 INTRODUCTION The history of banking has its roots in merchant banking, which was developed in ancient and medieval times. The term BANK is derived from the Italian word BANCO, which meant a bench used by the money lenders of those days. The early bankers transected their money in lending activities by sitting on these benches installed in market places. It was on these benches that they used to exhibit coins of different countries. Even as early as in 2000 BC some sort of banking has been evolved by the Babylonians. The temples were used as banks and the priests functioned as financial middleman. Later however, for a few countries, bank as an organized system of money lending reduced because of religions taboos relating to receipt of interest on money lent. Banking during those times mainly meant money-lending, financing wars and incidentally assisting business with credit. The money lender was an important figure in the Indian economic life. Even today the un-organized sector of the Indian money market is comprised of many money lenders in villages and indigenous bankers in cities. These bankers accept deposits and deal in Hundies and grant loans. In the early post-independence period most of the banks came in to picture and they were owned by private organizations / individuals. In the year 1969, government of India nationalized 14 such banks and six more

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in the year 1980. Several foreign banks like city bank, standard chartered and HSBC etc came in to India with an entirely new system. The present structure of Indian banking consists of RBI at the apex, SBI and its subsidiaries, 20 other public sector banks and several private banks. The private banking sector consists of scheduled, non- scheduled, commercial and co-operative banks. The banking policies and operations are regulated by RBI as per Banking Regulation Act 1949 and RBI Act of 1935. Technologies and innovations always led to change. The Indian Banking sector is not an exception to this. With the economic liberalization and globalization, the banking sector too faced severe competition from the private and global / foreign banks. This has brought drastic change in the working and management. Modernization, high level of automation and computerization took place in the entire banking operations. Traditional ways of banks functioning did not prove efficient, as they could not meet the requirements of the customers in short time spam. Growing needs of the households, business and industrial sector were not met by the banking traditional service. The banks understood the need to innovate and to launch customer friendly products in the face of growing competition from new entrants, foreign and domestic players. It was inevitable for domestic bankers to provide an efficient service system. Quality and system were to be updated to international level. Several new

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schemes were launched to attract the customers. One such scheme is the concept of Any Time Banking. Viewed from a purely technical perspective, an ATM is simply a safe with an electro-mechanical input and output system which is itself controlled by a fully electronic user interface. It is important that a ATMs user interface should not only be easy to use and clearly understandable but should be designed so as to minimize the likelihood of the customer leaving without taking from the machine all the things he needs to take. These are the cash, paper receipt and above all, the card. There is no doubt that the card is the most likely items to be forgotten by a customer, who sees the purpose of the interactive process being to obtain cash. Consequently, ATMs usually have some kind of sound alarm, which only ceases when the customer has removed his card from the slot. Some machines also provide visual message to remind the customer to retrieve the card, especially if the functions is one where the customer is not going to lingering by the machine until the cash has been dispensed. In order to prevent security problem if the customer nevertheless forgets to retrieve the card, the machine will swallow the card after a short period normally about 30 seconds. The customer will then usually need to apply centrally to get the card returned, although if ATM is situated in the lobby or through the wall of a branch where he is known, he can sometimes get the card back from the ATM by asking for the branch to extract it.

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The machines currently in use allow user to draw any sum of up to a limited account, view the current position of their accounts and order a new cheque book. To obtain money from the unit the customer need special ATM card and is notified of personal identification number, which is not shown on the face of the card. The card must to be inserted into machine and the personal number typed in. the machine will validate the code number and if correct will allow access the banks computer to check the account balance and if there are sufficient funds, to withdraw cash. NEED FOR THE STUDY The particular topic is chosen since the ATM concept is new to the market the aim is to study the product and its awareness in the general public and also the usage rate i.e., frequency of usage among the existing users. The study helps to obtain suggestions for improvement of product and service and also helps for finding out satisfaction level of customers.

OBJECTIVE OF THE STUDY To know the customer preference of ATMs in Shimoga. To know the usage and awareness of ATMs among the customer. To know the customer satisfaction of the ATM users. To know the reasons for not opting ATM services by bank account holders. To make suggestions regarding the product improvement and service.

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 To make observation about the concepts & functions of Automated Teller Machine. To analyses & discuss the strategic issues present in Automated Teller Machine. To understand the nature & structure of Automated Teller Machine.

Scope of the study The contemporary study of Automated Teller Machine in this project based on the sample of the different sectors of the banks. These sample banks have been selected at random. Rather keeping the consideration of mouth publicity factor by the customer orientation repute has made the choice. METHODOLOGY RESEARCH DESIGN A descriptive design intended to produce accurate

descriptions of variables relevant to the decision being faced without demonstrating that some relationship exists between variables. Since the problem is very clear descriptive research design and the survey is conducted with the help of a structured questionnaire. The data collected is according to the customer response. Two separate questionnaires are designed i.e. one for users and another for non-users. The data collected is then quantified using scores, percentage and

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aggregates, which helped in proper analysis of data. Graphs are also used in analysis for easy and quick understanding.

TOOLS FOR COLLECTION: Primary data: Two separate questionnaires, one for users and another for non-users, are designed and used for data collection. The data are collected personally by contacting the users and non-users. Secondary data: Secondary data is also collected for the purpose of study. The sources of secondary data are as follows. News papers Reports Company projects Magazines Books

LIMITATIONS OF THE STUDY

Main limitation of the project is the sample size. Only a sample size

of 100 is considered for users of ATM and 50 for non-users of ATM for the project work.
The survey is restricted to Shimoga only.

Analysis of the data, generated from the questionnaire is done on the assumption that the respondents divulged correct information.
The period allowed is only 60 days which is not enough to study in

depth.
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 Questionnaire may produce errors because of the different meanings attached by the different groups of people to the same question, which leads to misinterpretation of the data.

Chapter 2 AXIS BANK PROFILE

History of the Bank Significant milestones

Development

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AXIS BANK PROFILE

ABOUT AXIS BANK Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank as on 31st December, 2011 is capitalized to the extent of Rs. 412.57 crores with the public holding (other than promoters and GDRs) at 53.63%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1281 branches (including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 7591 ATMs (as on 30th September, 2011) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

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AXIS Bank is one of the fastest growing banks in private sector. The Bank operates in four segments, namely treasury, retail banking, corporate/ wholesale banking and other banking business. The treasury operations include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding. Retail banking includes lending to individuals/ small businesses subject to the orientation, product and granularity criterion. It also includes liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and non resident Indian (NRI) services. The corporate/ wholesale banking segment includes corporate relationships not included under retail banking, corporate advisory services, placements and syndication, management of publics issue, project appraisals, capital market related services, and cash management services. The Bank's registered office is located at Ahmedabad and their Central Office is located at Mumbai. The Bank has a very wide network of more than 1042 branches (including 56 Service Branches/ CPCs as on June 30, 2010). The Bank has a network of over 4,474 ATMs providing 24 hrs a day banking convenience to their customers. This is one of the largest ATM networks in the country. The Bank has five wholly-owned subsidiaries namely Axis Securities and Sales Ltd, Axis Private Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company Ltd and Axis Mutual Fund Trustee Ltd. Axis Bank was incorporated in the year 1993 with the name UTI Bank Ltd. The
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Bank was the first private banks to have begun operations after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd, The New India Assurance Company Ltd, The Oriental Insurance Company Ltd and United India Insurance Company Ltd. In the year 2001, the bank along with Global Trust Bank (GTB) had a merger proposal to create the largest private sector bank, but due to media's issues both the banks withdraw the merger proposal. In the year 2003, the Bank was given the authorized to handle Government transactions such as collection of Government taxes, to handle the expenditure related payments of Central Government Ministries and Departments and pension payments on behalf of Civil and Non-civil Ministries such as defence, posts, telecom and railways. In December 20003, the Bank launched their merchant acquiring business. In the year 2005, the Bank raised $239.3 million through Global Depositary Receipts. They won the award 'Outstanding Achievement Award' for the year 2005 from Indian Banks Association for IT Infrastructure, delivery capabilities and innovative solutions. In December 2005, the Bank set up Axis Securities and Sales Ltd (originally incorporated as UBL Sales Ltd) to market credit cards and retail asset products. In October 2006, they set up Axis Private Equity Ltd, primarily to carry on the activities of managing equity investments and provide venture capital support to businesses. In the year of 2007, the bank again raised $218.67 million through Global Depository Receipts.
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They opened 153 new branches during the year, which includes 43 extension counters that have been upgraded to branches and 8 Service branches/ CPCs. They also opened new overseas offices at Singapore, Dubai and Hong Kong and a representative office in Shanghai. During the year 2007-08, the Bank opened 143 new branches, taking the number of branches to 651 which included 33 extension counters that have been upgraded to branches. Also, they expanded overseas with the opening of a branch at the Dubai International Finance Centre. The Bank changed their name from UTI Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to avoid confusion with other unrelated entities with similar name. During the year 2008-09, the Bank opened 176 new branches that include 12 extension counters that have been upgraded to branches taking the total number of branches and ECs to 835. During the year, they opened 831 ATMs, thereby taking the ATM network of the Bank from 2,764 to 3,595. Also, they opened a Representative Office in Dubai. In May 2008, the Bank established Axis Trustee Services Company Ltd as a wholly owned subsidiary company, which is engaged in trusteeship activities. In December 2008, they launched their new investment advisory service exclusively for High Net Worth clients. In January 2009, the Bank set up Axis Asset Management Company Ltd to carry on the activities of managing a mutual fund business. Also, they incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for the mutual fund business. During the year 2009-10, the Bank opened 200 branches taking the total number of branches Extension Counters (ECs) to 1,035. In March 209, 2010, they opened their 1000 branch at Bandra West, Mumbai. In September 2009, Axis Bank launched the private banking business in the
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domestic market, christened 'Privee' to cater to highly affluent individuals and families offering them unique investment opportunities During the year, the Capital Markets SBU was restructured with the debt capital market business (hitherto a part of the capital markets) carved into a separate vertical. As a result, the Bank's Capital Markets SBU comprises equity capital markets (ECM) business, mergers and acquisitions and private equity syndication. In February 24, 2010, the Bank launched the 'AXIS CALL & PAY on atom', a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based payment service over IVR. Vision 2015 and Core Values VISION 2015: To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology Core Values Customer Centricity Ethics Transparency Teamwork Ownership

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Chapter 3 HISTORY OF ATM Invention of ATM Introduction to ATM card Types of ATM cards Working of ATM Parts of ATM How to use an ATM Uses of ATM Advantages and disadvantages

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HISTORY OF ATM ATM can be traced back to the 1960s, when the first ATM machine was invented by Scot John Shepherd-Barron and used by Barclays Bank in 1967. However, while Shepherd-Barron has the major claim to fame, there have been many other individuals who have also invented some version of the ATM. The machine itself has evolved over the years, with the earlier versions restricted to only one or few banking functions. There has been much debate, however, on who invented the first early versions of Automated Teller Machine. But the history of ATM can be visibly traced back to the year of 1967. In 1939, a rudimentary cash dispenser was invented by Luther George Simijian and established by the City Bank of New York. However, the machine did not work much and had to be removed within six months of putting up the machine. The early versions of the ATM were restricted to cash withdrawal only. In the 1967 model, patented by Shepherd-Barron, the plastic cards did not exist and instead a voucher with a strip of radioactive substance was used for withdrawing cash. Consequently, the vouchers were matched with a particular personal pin code used by the bank to identify the customer. The ATM was inaugurated by renowned British actor, Reg Varney. The personal identification number was initially a six numbered password, and was later changed to a four numbered password. However, this automated teller machine was very different from the modern day teller machines, which is based on an electronic system between the different branches of
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the bank. Thus, the history of ATM has seen many changes over the span of 25 years since 1939.

Another co-patent to the invention of the ATM was Don Wetzel, the Vice President of Product Planning at Docutel. While the conceptualization began in 1968, the patent was issued only in 1973. This cash dispenser was first used by the New York based bank, namely, the Chemical Bank. As was the case with the ATMs of during those years, they were hardly a multi-functional unit. Moreover, they were not based on any electronic system. Hence, the debit cards, distinct from credit cards, were given to only selected clients with good track records. The first ATM cards, with magnetic strips were developed by three individuals, namely Don Wetzel, Tom Barnes and George Chastain. While there were many developments in the history of ATM, the service itself took a stronghold only in the 1970s. Today, the ATM service has become indispensable to our modern day lives.

INVENTION OF ATM
Many people have claimed to be the inventor of the ATM. Some believe that Luther George Simjian did it. Some believe that it was Don Wetzel. Still others say the inventor is John Shepherd-Barron. John D. White has contacted ATMmachine.com and gave very convincing evidence that he is the inventor of ATM and not Don Wetzel. James Goodfellow of Scotland also contacted ATMmachine.com and gave us
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convincing evidence of inventing ATM. Since the patent on an ATM as we know it was never applied until years after Simjian, confusion on inventor till exists. One reason for confusion is that John Shepherd-Barron lived in the United kingdom, James Goodfellow in Scotland, while others lived in USA. We present all the evidence, as we know it on this page. The ATM Inventors and the facts: Luther George Simjian: In the late 1930's, Luther George Simjian started building an earlier and not-so-successful version of an ATM, but he did register related patents. He initially came up with the idea of creating a hole-in-the-wall machine that would allow customers to make financial transactions; the idea was met with a great deal of doubt. Starting in 1939, Simjian registered 20 patents related to the device and persuaded what is now Citicorp to give it a trial. After six months, the bank reported that there was little demand. Today, as you know, there is a huge demand! John Shepherd-Barron: John Shepherd-Barron had an idea in the 1960's for a 24/7 cash dispenser. At the time, he was managing director of De La Rue Instruments. De La Rue today manufactures cash dispensers. In fact, there is a De La Rue cash dispenser in 1 out of every 5 ATM machines built. If you want to believe that Shepherd-Barron invented the ATM, then the world's first ATM was installed outside a north London branch of Barclays Bank in 1967. Later In 1967, Shepherd-Barron presented his idea to a conference
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of 2,000 US bankers in Miami, after the first ATMs had been installed in England. He spoke to the conference about the new self-service banking device he developed. On December 31, 2004, John Shepherd-Barron, was named an Officer of the Order of the British Empire, or OBE, by the Queen of England for services to banking. "It was a bit late, but better late than never," said Shepherd-Barron. Press releases stated that ShepherdBarron was the "Inventor of the ATM." But, was he? James Goodfellow : As a Development engineer with Smiths Industries Ltd, James Goodfellow was given the project of developing an automatic cash dispenser in 1965. Chubb Lock & Safe Co. were to provide the secure physical housing and the mechanical dispenser mechanism. Eventually Mr. Goodfellow designed a system which accepted a machine readable encrypted card, to which he added a numerical keypad. UK Patent No.1,197,183 with a priority date of May 2 1966, covers this invention, and it is also covered by US Patent No.3,905,461 and Patents granted by many other countries. These Patents list James Goodfellow as inventor, along with the late A.I.O.Davies, the company General Manager. This US Patent still describes the basic ATM function almost 40 years later. These Machines were marketed by Chubb LTD and installed nationwide in the UK during the late 60s and early 70s. You can read ATM inventor James Goodfellow's story here on ATMmachine.com. Thanks goes out to Mr. Goodfellow for giving us his permission. (Update: In 2006, James Goodfellow was selected by the Queen to be awarded an OBE for services

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to Banking as patentee of the Personal Identification Number (PIN), and his service to banking. Don Wetzel: In 1968, according to a NMAH interview, Don Wetzel, says he was the Vice President of Product Planning at Docutel, the company that developed automated baggage-handling equipment. He applied for a patent on an ATM machine. He said there were two other inventors listed on the patent. They were Tom Barnes, a mechanical engineer and George Chastain, an electrical engineer. It took five million dollars to develop their ATM according to Mr. Wetzel. If you want to believe that Wetzel and company invented the ATM, then you might want to read the next paragraph. John D. White: John D. White told ATMmachine.com that his work started in 1968. He told us that he installed the first ATM at Rockville Center, LI for the then Chemical Bank in August 1973. His design was patented on May 9, 1973 for the Docutel Corporation and was filed on July 29, 1970. The machine was called a "Credit Card Automatic Currency Dispenser". Mr. White provided copies of his patent to ATMmachine.com for our review. Indeed it states the inventor of the machine was John D. White and Kenneth Goldstein, and the assignee on the patent was the Docutel Corporation. It does seem to us that this is very convincing evidence that it was White and not Wetzel who received the patent. There is also a statement in the patent that supports the idea of the modern ATM. "Both the original code
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and the updated code are scrambled in accordance with a changing key", which is basically what happens today. ATMs are programmed with security keys and the code changes and are scrambled to prevent fraudulent access to credit card and ATM numbers between the machine, the bank, and the network processor. We would like to thank Mr. White for contacting us. The patent drawings he gave us look very much like the free standing ATM that is sold on ATMmachine.com today. Jairus Larson: Jairus Larson told ATMmachine.com that although he did not invent the ATM, as far as he is aware , he did develop the very first 'on-line' ATM (Diebold's "550"). The first ATM's were all 'off-line' versions (sometimes referred to as 'stand-alone') meaning they did not have any means to communicate with the bank. Today's ATMs are 'on-line' meaning they communicate with the bank's computer system. Mr. Larson was kind enough to give us his account of how this happened in the early 1970's. You can read about Mr. Larson's ATM development here.

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INTRODUCTION TO ATM CARD

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

TYPES OF ATM CARDS

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More people use plastic to pay for items than cash. There are many different types of cards used to make purchases or withdraw money and many people don't think about the differences. There are significant differences between ATM, debit and credit cards. There are several different types of cards that fall under the category of an ATM card. Basic ATM Card : Your basic ATM card only has a few uses. It can be used at any ATM machine for the bank that issued it and sometimes at other banks for a fee. You can use your ATM card to withdraw and deposit money, check your account balance and transfer funds. Some ATM cards also have a few more uses like paying loans and getting cash advances, however ATM cards cannot be used to make purchases Debit ATM Card : An ATM debit card has all the features of a regular ATM card with the added features of a debit card. This card can be used to make purchases at any store or online. Typically they will have a credit card logo on them, although they do not work the same way as credit cards. Every time and ATM debit card is used; money is taken out of the checking account it is linked to.

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

WORKING OF ATM
There are mainly two types of ATMs which differ according to the way they operate. They can be called as Dial-up ATM machines Any ATM machine needs a data terminal with two inputs and four output devices. Of course, for this to happen there should also be the availability of a host processor. The host processor is necessary so that the ATM can connect and also communicate with the person requesting the cash. The Internet Service Provider (ISP) also plays an important role in this action. They act as the gateway to the intermediate networks and also the bank computer. A leased-line ATM machine has a 4-wire, point to point dedicated telephone line which helps in connecting it with the host processor. These types of machines are preferred in places where the user volume is high. They are considered high end and the operating costs of this type of a machine is very high. The dial-up ATM machines only has a normal phone line with a modem and a toll free number. As these are normal connections their Leased-line ATM

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initial installation cost is very less and their operating costs only become a fraction of that of a leased-line ATM. The host is mainly owned by the bank. It can also be owned by an ISP. If the host is owned by the bank only machines that work for that particular bank will be supported.

PARTS OF ATM
As told earlier, there are mainly two input devices and four output devices for an ATM. The input devices are: Card Reader This is a part of the identification of your particular account number. For this the magnetic stripe on the back of the ATM card is either swiped or pressed on the card reader so that it captures your account information. To understand the account information of the user, the data from the card is passed on to the host processor. The host processor thus uses this data to get the information from the card holders bank. Keypad After the card is recognized, the machine asks further details like the type of withdrawal you prefer, your balance enquiry, and your personal identification number (PIN) and so on. Since each card has a unique PIN number, there is very little chance for someone else to withdraw money from your account. There are also separate laws to protect the PIN code while sending it to the host processor. So, the PIN number is mostly sent in encrypted form.
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If your pin number is correct the ATM makes the necessary transactions for the required amount. For this transaction, there are mainly four outputs. They are: Speaker When a particular key is pressed, the speaker provides the feedback as audio. Display Screen The questions asked by the ATM machine regarding the transaction and the input from the user is all displayed on the display

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screen. Each step of withdrawal is shown by the display screen. A CRT screen or even an LCD screen is commonly used as an LCD screen.

Receipt printer All the details regarding your withdrawal like the date and time and the amount withdrawn and also the balance amount in the bank is also shown in the receipt. Thus a paper receipt of the current transaction is obtained by the user. Cash dispenser This is the central system of the ATM machine. This is from where the required money is obtained. From this portion the person can collect the money. Functions of the Cash Dispenser: As the whole mechanism is regarding the withdrawal of cash, the cash dispenser should be highly efficient. These are the main functions that are to be carried out by the cash dispenser. It is the duty of the cash dispenser to count each bill and give the required amount. If there are cases where the bills are stuck together they should be rejected and instead new notes should be taken. If the money is worn, or even folded, they will be moved to another section called the reject bin. All these actions are carried out by high-precision sensors. There may be cases where the sensors may go wrong. To know this, the person responsible for the machine checks the number of rejected notes at a certain interval. If the numbers of notes are a lot than expected, then it would indicate that either the quality of the bills is not good or there is a problem with the cash dispenser.

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A complete record of each transaction made by a particular ATM machine is recorded each day and is kept as a journal. This journal is later collected and then printed out at times. This information regarding the transaction is kept by the authorities for a period of 2 years. As there may be cases regarding a particular transaction going wrong, the account owner or also the bank officers have a right to see the transaction. With this printout the account holder can contact the host processor. ATM Networking: When a transaction is made, the details are inputted by the card holder. This information is passed on to the host processor by the ATM machine. The host processor checks these details with the authorized bank. If the details are correct, the requested cash by the card holder is taken with the help of an electronic fund from the customers bank account to the host processors account. After this function is carried out, the processor sends an approval code to the ATM machine so that the cash can be transferred.

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HOW TO USE AN ATM

ATMs, standing for "Automatic Teller Machines", are an easy, convenient way to access your account from almost anywhere. If you're new to them, don't worry. It's easy. The instructions are right there, on the machine.

Steps involved in Depositing Money: 1. Be alert. As you approach the ATM, look around for other people. If it is night time, pick an ATM in a well-lit location. If using a drive-up ATM, pull up close to it so no one can see you enter your PIN (Personal Identification Number). If you are uncomfortable with the area or the people around the machine, find a different machine or use the machine some other time 2. Fill out a deposit slip, if needed. Take an envelope and prepare any deposits you will make ahead of time.

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Fill out a deposit slip, if your bank requires one, and include it in the envelope. Write the amounts of money you are depositing in the space provided. Write the total of all your cash on the first line.
3. Endorse your check.

To deposit a check, sign the back of the check ( called "endorsing" the check) with your name as it is written on the front. Depending on the rules of your bank, you may also write "for deposit only" and include your account number, as shown. Write the amount of each check on a line of the deposit slip. Beside it, write the "fraction". This number appears on the face of the check, often in the upper right corner near the check number. It tells your bank where the check came from. Add up the amounts you are depositing and write the number down where you can see it after you seal the envelope. Then, seal the envelope. 4. Insert your ATM Card into the machine. 5. Select a language. Note that this option often only comes up where your card is registered as being from another country, unless you live in a country or region with languages other than English are in major use. 6. Enter your PIN (Personal Identification Number), Then press Enter. 7. Select a transaction. 8. Deposit money. If you want to deposit (put in) money:
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Enter the amount you will deposit. Confirm the amount. Insert the envelope into the deposit slot when the machine opens it. Note that some ATMs will not allow you to deposit money. In this case, you need to find one at a branch. Steps involved in Withdrawing Money: 1. Insert your ATM Card into the machine 2. Select a language. 3. Enter your PIN (Personal Identification Number), then press Enter. 4. Withdraw money. If you want to withdraw (take out) money, select or enter the amount to withdraw. Most machines dispense money in fixed amounts. You may be given a choice between common amounts or you may be asked to enter a number that is a multiple of 20 (20, 40, 60, 80, etc.). Take the cash when the door opens. Put it directly into your wallet. 5. Choose whether to do an additional transaction. Select Yes or No. 6. Choose whether you want a receipt, select Yes or No. Take the receipt if you requested it. 7. Wait while the system processes your transaction(s). When the machine beeps at you, take your card, cash, and receipt (if applicable). Always make sure that you have both your cash and your card. 8. Use the receipt to record the transaction in your check register or passbook
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USES OF ATM
Cash Withdrawal and Balance Enquiry : In spite of a number of innovative services being made available at many ATMs, cash withdrawal stills remains the most accessed service at ATMs. However, the migration of routine bank transactions like cash withdrawals and balance enquiries from teller counters to ATMs significantly raises the potential for savings in employee costs and greater employee focus on value-added revenue-enhancing activities such as selling other financial products and advisory services to customers. Cash /Cheque Deposit : Again, due to the strong cash culture in India, cash deposits are most likely higher than in other markets, especially cash deposits made by commercial customers such as retail shopkeepers and those whose work involves substantial traveling. A high cash withdrawal rate results in higher ATM servicing costs due to frequent cash replenishment requirements. Recent developments in ATM technology have made it possible to recycle cash in ATMs. Currency notes received as cash deposits are counted; soiled notes separated and deposited cash dispensed to fulfill withdrawal transactions. However, regulatory concerns relating to identification of counterfeit

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notes

and

its

depositors

need

to

be

addressed

first.

ATM with Cheque deposit facility is not picking up in India, like other countries. One of the reasons is the delay in collection of the cheque deposited in ATMs. Cheque deposited in ATMs is to be collected and deposited in the designated branch for collection. Another reason is the introduction of cheque deposit Kiosks by various Banks especially Private sector ones. These are kept at each some important locations/branches where customers can deposit there cheques which are collected at intervals which may be difficult in ATMs. Bill Payments : Most utilities have inadequate infrastructure for receiving bill payments resulting in long queues at collection centres. Hence, bill payment at ATMs has achieved noticeable acceptance by bank customers. Most banks provide this service through bi-lateral arrangements with billpayment service providers. ATM users register their water, electricity and telephone utility accounts with banks, check their dues at ATMs, approve bill payments that are debited to their bank accounts and receive printed receipts for the transactions. This service has the effect of improving customer satisfaction for both the bank as well as the bill-payment service providers. Some Banks ATMs even accept charitable contributions to Temples.

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Sale of Paper sled Products: ATMs are ideally suited to sell paper-based products and services such as tickets, wireless phone recharge cards, financial products, etc. The screen interface allows browsing and customization, access to bank accounts facilitate payments and printing capabilities produce the actual product/service. A number of banks including ICICI Bank, SBI and PNB have ATMs at Mumbais local railway stations to dispense season tickets to commuters. Own-bank customers pay no extra charge while other bank customers pay a fee of Rs. 50 for this extremely useful service of anytime ticket purchase. Railway season tickets represent a high-volume massappeal product. As technical standards get established and product/service sellers become aware of the ATM sales channel, niche-appeal highmargin products like entertainment tickets will join the fray. Kiosks: Information Kiosks has been introduced by many Banks and also by PSUs like Railways, Tourist centers etc. While the revenue-producing capacity of non-emergency type of information at ATMs as a stand-alone product is doubtful, many customers may be willing to pay a nominal fee for information having impulsive demand such as cricket scores while they wait for their transactions to be processed. To be sure, providing

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information, some

whether and

priced

or

free, customer

will

appeal satisfaction.

to

customers

increase

Union Bank has used technology to establish Village Knowledge Centers (VKCs), which have proved to be a success in the 198 centers, where they have been set up. VKCs empower the local rural population by giving them information on various vital inputs such as weather, fertilizers, prices of crops, etc. The bank is also operating financial education centers offering counseling at 51 of these VKCs. Third Party Advertising: In India, ATM advertising for third-party products is currently not allowed by Regulatory authorities. However, the wait time at ATMs can be effectively used by banks to promote their own brands, product and services. Furthermore, banks can tailor advertising messages based on customer information easily available in their accounting and CRM databases. Customer wait-time at ATMs while transactions get processed, typically between 10 to 25 seconds, has been profitably used by many banks for their own advertising. Money Transfers: Indians, who have migrated abroad or to cities, regularly use money orders and wire transfers to send money to their families back home. ATM growth, especially in rural India, will capture substantial business from the expensive wire transfer agents network and the customerservice lacking postal network. In line with international trends, ATMs

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can be made capable to dispense printed money orders or initiate wire transfers against a charge on customers bank accounts. After addressing regulatory hurdles, these services can even be made available to nonaccount holders through cash payments using the currency acceptors built into ATMs. ATMs can also facilitate the encashment of wire transfer amounts by allowing even non-account holders to withdraw cash based on Pins or previously mailed special-purpose ATM cards. Recharge Mobiles via ATMs: ATMs are also used to recharge mobile phones. Initiated in 2004 by ICICI Bank, now most ATM/Debit Cardholders are able to recharge their pre-paid subscriptions of most mobile service providers from anywhere in the country using their banks ATMs or by sending a SMS. The amount for recharging the mobile phone would be debited from the subscribers Bank account and the subscription would be directly recharged accordingly. The mobile top-up facility provides convenience on ATMs and through mobile phones using SMS.

FRAUD PREVENTION (FOR CONSUMERS)

Most ATM frauds happen due to the negligence of customers in using, and more importantly, negligence of banks in educating their customers about the matters that should be taken care of while at an ATM. The number of ATM frauds in India is more in regard to negligence of the Personal Identification Number (PIN), than by sophisticated crimes
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like skimming. Banks need to develop a fraud policy the policy should be written and distributed to all employees, borrowers and depositors. The most important aspect for reducing ATM related fraud is to educate the customer. Here is a compiled list of guidelines to help your customer from being an ATM fraud victim: Look for suspicious attachments: Criminals often capture information through ATM skimming using devices that steal magnetic strip information. At a glance, the skimmer looks just like a regular ATM slot, but its an attachment that captures ATM card numbers. To spot one, the attachment slightly protrudes from the machine and may not be parallel with the inherent grooves. Sometimes, the equipment will even cut off the printed labels on the ATM. The skimmer will not obtain PIN numbers, however. To get that, fraudsters place hidden cameras facing the ATM screen. Theres also the helpful bystander (the criminal) who may be standing by to kindly inform you the machine has had problems and offer to help. If you do not feel safe at any time, press the ATM cancel button, remove your card and leave the area immediately. Minimize your time at the ATM: The more time you spend at the ATM, the more vulnerable you are. If you need to update your records after a transaction, one is advised do it at home or office, but not while at the ATM. Even when depositing a cheque at the ATM, on should not make/sign the cheque at the ATM.

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After the transaction, if you think you are being followed, go to an area with a lot of people and call the police. Make smart deposits: Some ATMs allow you to directly deposit checks and cash into your accounts without stuffing envelopes. As for the envelope-based deposits, make sure they go through if it gets jammed and it doesnt fully go into the machine, the next person can walk up and take it out. After having made the ATM deposit, compare your records with the account statements or online banking records. Avoid using ATMs at night: While robberies are less prevalent than fraud at ATMs, theres still risk, especially at night. And if you have to use an ATM late at night, use one at a bank itself. Financial institutions have to follow certain guidelines and regulations as far as lighting is concerned. They also have cameras on all the ATMs. Be aware of your surroundings: Before you slide your card into the machine, look around if the area appears safe or if there is anybody who can see the PIN pad. Having the card ready before entering is ATM premises is better than searching for it though the purse at the machine. While you are fumbling with a wallet or purse, you are easy prey for a thief. A good rule of thumb is to always shield your card, no matter how comfortable you are with the place. If

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your card is stuck inside an ATM, be suspicious of anyone offering help. Immediately report the incident to the bank Keep your receipts and card before leaving the place: Before you leave the machine, make sure you have your card. Also, do not leave your receipt behind at the ATM. Keep copies of your receipts and compare them with your monthly statement. As much as 83 percent of all ATM and debit fraud results from stolen cards and discarded receipts bearing card/account numbers. Memorize your PIN: Many cardholders walk up to an ATM and pull out a piece of paper containing four numbers. If you are not sure, make it a point that you dont keep the PIN and ATM card together in your wallet If someone comes up and hits you over the head, theyre going to have all your information right there. But ideally, one should never write down the PIN number it should be memorized. Never disclose your PIN to anyone: Even bank officials do not require an ATM PIN neither to process an issue involving ATMs, nor to remove a card stuck in the machine. Always change the PIN as soon as you receive it. Preferably, change it every quarter. This habit will also help remind you of changing the PIN if you find a suspicious activity. Never provide information via e-mail:

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About 3.5 percent of ATM and point-of-sale debit fraud originates from phasing e-mails. Phi hers attempt to obtain information about your bank account by asking for your PIN, account number and personal information. Much like ATM skimming equipment, these e-mails appear legitimate. If you click on a link, you will be sent to a Web site that looks exactly like the one the phi hers are imitating. Reputable companies do not ask for information through e-mail. If you receive one of these emails, inform the organization. And if you believe your accounts have been compromised, inform your financial institution and cancel the account.

ADVANTAGES AND DISADVANTAGES ATM Advantages : Ability to draw cash outside normal banking hours. Cheaper where bank charges are incurred and often quicker than using normal cashier services. Does not just operate as a medium for obtaining cash. Amount up to a set limit per day is available. All customers can apply for the joint accounts two separate cards can be issued. Although ATMs are primarily located on bank premises, some are available elsewhere.

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 Where an incorrect PIN is used several times in succession (say where a thief has stolen the card),the ATM will retain the card. ATM service is available for 24 hours a day,7 days in a week. It helps to check the balance in an account. It is easy, saves time of customers. ATM disadvantages : money in its account, then in this case the ATM may not recognize his card. by when it is urgently required. machine then details of customers can be misused.

If person who does not have sufficient

May be ATMs may not be situated near

If some one watches or hacks ATM

Banks have maintained a limit of Rs information is displayed on the ATM. The maximum limit is Rs.25000/- per day. No one can withdraw money beyond this limit.

10,000/- per transaction. This

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CHAPTER 4 ATMs IN CONTEMPORARY BANKING A THEOROTICAL FRAMEWORK AND PROFILE OF BANKS COVERED UNDER STUDY

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A THEOROTICAL FRAMEWORK ATMs were introduced in the 1970s; they were set up only inside or immediately outside their banks branch offices. They were seen by banks largely as a way of saving money, by reducing the need for tellers. Even with the relatively expensive computer technology of the late 70s and early 80s, the cost of processing deposits and withdrawals via ATMs proved to be less than the cost of training and employing tellers to do the same work. To encourage customers to embrace the new technology and overcome their trepidations about putting there cheques in to a machines slot rather than a tellers hands, banks originally didnt charge customers any fees for using ATMs. Indeed, in time, some banks started charging customers for not using ATMs. Through so-called human teller fees a charge for each time a customer uses a teller for a service that could be performed by an ATM. At first, a banks ATMs could only be used by consumers who already had checking or savings accounts with that bank, through the banks proprietary ATM network. HISTORY OF ATM ATM can be traced back to the 1960s, when the first ATM machine was invented by Scot John Shepherd-Barron and used by Barclays Bank in 1967. However, while Shepherd-Barron has the major claim to fame,
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there have been many other individuals who have also invented some version of the ATM. The machine itself has evolved over the years, with the earlier versions restricted to only one or few banking functions. There has been much debate, however, on who invented the first early versions of Automated Teller Machine. But the history of ATM can be visibly traced back to the year of 1967. In 1939, a rudimentary cash dispenser was invented by Luther George Simijian and established by the City Bank of New York. However, the machine did not work much and had to be removed within six months of putting up the machine. The early versions of the ATM were restricted to cash withdrawal only. In the 1967 model, patented by Shepherd-Barron, the plastic cards did not exist and instead a voucher with a strip of radioactive substance was used for withdrawing cash. Consequently, the vouchers were matched with a particular personal pin code used by the bank to identify the customer. The ATM was inaugurated by renowned British actor, Reg Varney. The personal identification number was initially a six numbered password, and was later changed to a four numbered password. However, this automated teller machine was very different from the modern day teller machines, which is based on an electronic system between the different branches of the bank. Thus, the history of ATM has seen many changes over the span of 25 years since 1939. SHARED ATM NETWORKS By the early 80s, banks began to take advantage of improvements in telecommunications technology and formed shared ATM networks with

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other banks, allowing customers of one bank to withdraw money by using ATMs of other banks. Banks paid other ATM owners interchange fees, to cover the marginal cost of the off-us transactions by its customers on the owners machines. Banks paid the network a switch fee per transaction, plus an annual membership fee, to cover the costs of the network. Originally, these fees were not directly passed in to customers. After all, from the perspective of a bank, banks that joined the network could advertise that their customers could get access to their money from far more locations than those banks that didnt belong. Yet the bank would not only have to pay for tellers: it wouldnt have even have to pay for the cost of building and maintaining most of the extra ATMs from which customers could access their funds. Big banks, seeking to maximize the value of the new shared networks, urged small banks to join, arguing that joining the network would be much less expensive for a small bank than building a competing network. But the big banks werent totally altruistic, even than. They needed to increase usage of their own machines to justify their own expense, and could do so most easily by adding volume from non-customer transactions. ATM CHARGES The banks realized that many people were essentially hooked on ATMs and would be willing to pay some small amount of money to use them, especially when they were traveling. A number of banks slowly began to charge fees. In the mid 1980s, then some banks began imposing a fee on their customers for using another owners ATM. These so-called foreign or off-us fees became more common in the 1990s. By the early 90s, using ATMs had become an everyday part of life for a large percentage of Americans. Young people barely even new what it was like to hand a deposit slip to a teller and ask for their $ 100 withdrawals in a mix of $ 5s, and $20s.

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This concept has evolved due to innovation of Automatic Teller Machines popularly known as ATMs. A customer can have money at any time by having an ATM card with the insertion of the card he gets fresh notes at any time and also the deposit is made easy. Through this financial details can be accessed from remote locations and basic transactions can be affected outside the bank. Interconnectivity of ATMs has also facilitated withdrawals from other cities, a service particularly useful for frequent travelers and businessmans. The facility of using credit cards on ATMs is also available and more recently Mutual arrangements between banks allow for the use of ATM cards on the other banks ATM as well. Now banks are competing to expand their ATM Networks by establishing branches at non branch locations such as Airports, Shopping malls and Office complexes. PROFILE OF BANKS COVERED UNDER STUDY The study has been done on four banks namely SYNDICATE BANK, AXIS BANK and SBI. SYNDICATE BANK NETWORKED ATM SERVICES Syndicate Bank Global / ATM Debit Card Syndicate Bank Global Debit/ATM Card brings you the convenience of accessing your money ANYTIME & from ANYWHERE Globally. You can transact in any currency, but pay in Indian Rupees. It is a CONVENIENT e-WALLET valid in India & abroad with VISA Power. The Card is offered FREE OF FEE for all eligible accounts with any of Syndicat-e-banking (CBS) branches and select Non-CBS branches of the Bank. FEATURES OF THE ATM CARD:
1. Syndicate Bank Global Debit Card is issued in association with VISA.

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2. Acceptance at following locations-

LOCATION All ATMs of Syndicate Bank

LOGO

PURPOSE For Cash Withdrawal, Balance Enquiry, Mini Statement & Change of PIN through over 350 ATMs For Cash Withdrawal & Balance Enquiry through over 16,000 ATMs in India and over 10 lakh ATMs globally For purchases through over 1.88 lakh MEs in India and over 24 million MEs globally For Cash Withdrawal & Balance Enquiry through over 2,000 ATMs

Other Banks ATMs displaying VISA Logo Merchant Establishments Displaying VISA Logo All CashTree ATMs

3. Eligible Customers: All individuals (including NRIs but excluding minors, blind & illiterate persons) maintaining individual or joint (operated by any one) Savings Bank, Current or Overdraft A/cs. All Proprietorship Firms maintaining Current or Overdraft A/cs.

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 Unto three accounts of a person with same Customer ID with the Bank can be linked to a Debit Card. However, at other Banks ATMs & Point of Sale (POS) terminals, the Debit Card would be honoured only if required balance is available in the Primary (Main) account linked to the Card. 4. Usage Limits: S. No A B C Type of Transaction CARDS ISSUED CARDS ISSUED BY CBS BY NON-CBS BRANCHES BRANCHES Value in Indian Rupee or equivalent Foreign Currency Rs.100/Rs.100/(Rs. one hundred (Rs. one hundred only) only) Rs.10,000/Rs.5,000/(Rs. ten thousand (Rs. five thousand only) only) Rs.25,000/Rs.15,000/(Rupees twenty five (Rupees fifteen thousand only) thousand only) No restriction Rs.10,000/(Rs ten thousand only) No restriction Rs.5,000/(Rs five thousand only)

D E

Minimum Value of any transaction at ATM or POS Maximum Value per transaction at ATM or POS Maximum Value of on-line transactions per day at ATM or POS or both put together Number of transactions permitted per day Maximum permissible value of off-line transaction

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ADVANTAGES OF ATMs 24-hour access to cash Can withdraw up to Rs.10000/- per day on ATM card. The Fast Cash option saves time by providing the cash in the denominations of Rs.500/-. Balance Inquiry The Updated balance will appear on the screen and will also be printed on the transaction slip. Mini statement request Get details on last 9 transactions on account with the mini statement, along with the balance. Cheque book request Send a request for a cheque book or account statement and it will arrive at the doorstep. Fund transfer Transfer money from one of the accounts to another. Its easy. Select the account from which to transfer, and then indicate the amount and the account to which it is to be transferred. Both accounts must be linked to the ATM card and customer ID. The maximum of 5 savings and 5 current accounts can be linked. Pin change Can conveniently change the PIN (given at the time of opening the account). Stay totally in control and ensure complete security for the ATM card. Bill pay Pay cellular, telephone and electricity bills using ATM card. Any time cash deposits Cash or cheques can be deposited in to the account and the ATM will immediately print a receipt for the same.

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CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

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According to the research plan, 100 users and 50 non users of ATM are interviewed separately by using structured questionnaires. The research is conducted in the Shimoga. The opinions collected are coded in a master coding sheet. Based on this graphs and inferences are drawn, to have the better interpretation of the data collected. Findings are assessed and conclusions are drawn on the basis of response of the respondents. The study is conducted separately for users and nonusers, by using different questionnaires.

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Awareness sources of ATMs The below table and chart show the awareness sources of ATMs in Shimoga. Based on respondents response the chart has been drawn. This chart helps to know the source which influences more to the customers to know about the ATMs. SOURCES TELIVISION MAGAZINES NEWS PAPERS AT YOUR BANK FRIENDS/RELATIVES NO.OF RESPONDENTS 28 16 13 31 12 PERCENTAGE 28 16 13 31 12

A A EES W RNS
T LV I N EI I O S

1% 2 2% 8

MGZ E A AI S N

NW P P R E S A ES 3% 1 1% 6 1% 3 F I NS RE D / R L TVS EAI E AYUBN T OR A K

ANALYSIS: 31% of the respondents are aware through their banks. 28% are aware through television. Magazines are in next place at the rate of 16% and then the news papers at 13%.Friends and relatives are influencing at the rate of 12% and they are in the last place. INFERENCE: From the above analysis, we can say that the banks are the main source of awareness to the customer. They influence their existing customer to become their ATM customer. Television and magazines also have the considerable influence in creating awareness. News papers and friends and relatives are at the last place.

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1. Cards owned by the respondents The table and chart show the cards owned by the respondents. These help the viewers to know the bank which is having more card holders in the twin city. BANKS SBI SYNDICATE AXIS ICICI NO.OF RESPONDENTS 43 28 17 12 PERCENTAGE 43 28 17 12

CARDS OWNED BY THE RESPONDENTS

50 40 30 20 10 0
CE NT

43 28 17 12 NO OF CARDS

UR IA N

IC IC I

ANALYSIS: Out of the total respondents interviewed 43 people own SBI, 28 people own SYNDICATE, 17 people own AXIS and 12 people own ICICI ATM cards. INFERENCE: In the twin city, SBI Bank ATM card holders are more compared to other three banks.
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SY N

DI CA TE

UT I

3. Reasons for selecting a particular bank to own ATM card The chart and the table show the reasons for choosing the particular banks ATM card among the four. The chart also helps to know the services which customer prefers more to opt for an ATM card. REASONS LOCALITY SERVICE SECURITY MORE WITHDRAWAL COST NO.OF RESPONDENTS 32 24 17 14 13 PERCENTAGE 32 24 17 14 13

ANALYSIS: Out of the total respondents 32% consider locality 24% consider service and 17 % consider security. Withdrawal facility was considered by 14% of the respondents and the pricing factor is considered by 13% of the card owners. INFERENCE: Customer looks at more number of ATMs at their convenient places, service is the next priority for the customers. Security, withdrawal and the price are the next factors in owing ATMs.

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4. Usage Time The chart and the table show the time which the customers use ATM services more. This helps at the time of making the suggestions to the bank regarding the ATMs. TIME 5PM -8PM 10PM-5PM 8AM-10AM AFTER 10PM 6AM-10AM NO.OF RESPONDENTS 31 28 20 11 10 PERCENTAGE 31 28 20 11 10

ANALYSIS: The above graph shows that 31 % of the respondents use ATM mostly between 5PM to 8 PM, 28 % use during office hours. i.e. 10 AM to 5 PM, 20% use between 8 to 10 PM, 11% of respondents use after 10PM and 10% use before office hours. INFERENCE: Almost half of the users use ATMs during the evening. That is more between 5PM to 8 PM (31%), and 8 to 10 PM (20%). There is less usage of ATM before office hours.

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5. Usage Rate The below chart and table is drawn in order to know the usage rate of the ATMs. These help the viewers to understand easily how often the users use the ATMs in a month. TIMES 10 TO 20 20 TO 50 5 TO 10 OCCASIONALLY NEVER NO.OF RESPONDENTS 58 18 15 7 2 PERCENTAGE 58 18 15 7 2

ANALYSIS: 58 % of the respondents use ATM cards for only 10 to 20 times a month. 18 % use 20 to 50 times a month. 15% use ATMs 5-10 times a month. 7 % use occasionally and 2 % not use their card. INFERENCE: Majority of the users use ATMs 10 to 20 times a month. There is no much heavy usage. i.e.58%. Only 18% use ATMs at the rate of 20 to 50 times a month. Occasional users contribute 7% and 2% are the non users of ATMs.

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6. Satisfaction about ATM service The chart and table show the satisfaction about the present services provided by the ATM service providers. By the help of this chart we can see the percentage of satisfied customers with the present services provided by the ATMs. SATISFACTION YES NO NO.OF RESPONDENTS 66 34 PERCENTAGE 66 34

ANALYSIS: 66% of the respondents are satisfied with the service provided by the ATM. 34% are not satisfied with the service. INEFERENCE: Majority of the respondents are satisfied with the present system of service. Some are not satisfied and they ask for improvement. Overall service is satisfactory.

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7. Satisfaction About The Withdrawal Limit The table shows the customer satisfaction of the users with the withdrawal limit of the ATMs prescribed by the bank. To understand this in a better way the below chart has been drawn. SATISFACTION NO YES NO.OF RESPONDENTS 73 27 PERCENTAGE 73 27

ANALYSIS: 73% of the respondents say that withdrawal limit prescribed is not sufficient. Only 27% of the respondents say that, withdrawal limit is sufficient. INFERENCE: Withdrawal limit is not sufficient can be concluded from the above response. They ask for increase in the withdrawal limit. Most of them are having business background. Only 27% not need any improvement in the prescribed withdrawal limit.
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8. Cost of the ATM service The chart and table show the customer satisfaction with the cost of the ATMs. The cost of service is a major factor, as it plays a vital role while opting for the ATM cards by the account holders.

SATISFACTION YES NO

NO.OF RESPONDENTS 53 47

PERCENTAGE 53 47

ANALYSIS: 53% of the respondents agree with the cost of the ATM service.47% are not satisfied with the cost. INFERENCE: Cost of the ATM service is affordable in some cases. But still almost half of the customers feel that it should be less.
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9. Comparison of own ATM service with others The table and chart show the opinion of the respondents about their banks, compared to other three banks. To understand the opinion of the customers is important from banks point of view, as it helps to compare them with the others. COMPARISION SAME BETTER SAME WORSE NO.OF RESPONDENTS 42 35 23 0 PERCENTAGE 42 35 23 0

ANALYSIS: 42% of the respondents convey that their services are same with other banks services. 35% say that their card service is better .23% say that their services are excellent than others and no one is of the opinion that it is worse when compared with other ATM services. INFERENCE: Almost half of the respondents favor their ATM services than others. 42% feel they are same. This means the customers are having good opinion about their bank. It is noticeable that no one is of the opinion that it is worse when compared with other ATM services.

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10. Satisfaction Of Overall Services The table shows the customer satisfaction of the users with the overall service provided by the ATMs. To understand this in a better way the below chart has been drawn. PREFERENCE YES NO NO.OF RESPONDENTS 63 27 PERCENTAGE 63 27

ANALYSIS: 63% of the respondents are satisfied with the overall services provided by the ATMs.27% are not satisfied with the overall service. INFERENCE: Majority of the respondents are satisfied with the overall service provided by the ATMs. Some are not satisfied and they ask for the improvement.

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11. Customer preference of ATMs The table shows the preference of the ATM services instead of traditional banking transactions by the card holders. The chart shows the same in the simplest way. This helps to know how much the customer prefer the ATMs instead of traditional banking transactions. PREFERENCE YES NO NO.OF RESPONDENTS 78 22 PERCENTAGE 78 22

ANALYSIS: 78% of the respondents prefer the ATM services instead of traditional banking.22% respondents do not prefer the ATM service. INFERENCE: Majority of the respondents prefer the ATMs instead of traditional banking transactions. Some do not prefer ATM services and they are happy with the traditional banking transactions.

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12. Occupation / Employment The table and the chart show the occupation / employments of the ATM card holders. This will help the bank to know who the major ATM card holders are. The bank can then target the customers easily. Occupation Biz employees Students Pvt. Employees Govt. Employees Rtd. Persons No.of respondents 35 26 20 15 4 Percentage 35 26 20 15 4

ANALYSIS: The graph shows that the 35% respondents are business persons, 26% are students, 15% government employees, and the 20% are from private employee background. Only 4% are retired people. INFERENCE: Customer concentration i.e. more ATM card holders are having the business background. It is followed by students who are very much attracted towards ATMs. Private employees are also attracted by ATMs. Retired people who are having the ATM cards are few.

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CHAPTER 6 Findings, Suggestions and Conclusion

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Findings, Suggestions and Conclusions This project work has been carried out in order to know the customer preference of ATM services. The research is also conducted to know the customer satisfaction, the reasons for not opting the ATM services by the customers and to make suggestions regarding product improvement. The research is restricted only in Shimoga city. The time taken for the project is 2 months. Judgmental sampling plan is used to collect the data. The data collected are then analyzed by using graphs and statistical tools. Based on these analyses I found several factors relating to ATMs. They are presented below: FINDINGS Banks, magazines and news papers are the major sources of

awareness of ATMs.

In the city, SBI Bank ATM card holders are more compared to

other three banks. Customer looks at more number of ATMs at their convenient

places; service is the next priority for the customers. Security, withdrawal and the price are the next factors in owing ATMs Almost half of the users use ATMs during the evening (5pm to 8

pm). There is less usage of ATM before office hours (6 pm to 10pm).

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Majority of the users are not heavy users of the ATM services

i.e.58%. Only 18% use ATMs at the rate of 20 to 50 times a month. Most of the customers are not satisfied with the withdrawal limit of

the ATMs. Cost of the ATM service is affordable in some cases. But still

almost half of the customers feel that it should be less Almost half of the respondents favor their ATM services than others. 42% feel they are same. This means the customers are having good opinion about their bank. Majority of the respondents are satisfied with the overall service provided by the ATMs.

78 percent of the ATM card holders prefer the ATMs instead of

traditional banking transactions Customer concentration i.e. more ATM card holders are having the business background. It is followed by students who are very much attracted towards ATMs. Private employees are also attracted by ATMs. Retired people who are having the ATM care are few.

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 Majority of the non users of the ATM services are aware of the ATM services. From the above analysis I can conclude that less security is the main criteria for not opting of ATM cards. High charges are the second factor according to respondents. Poor service, withdrawal restrictions and locality are respectively the other reasons.

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SUGGESTIONS Based on research results and findings some suggestions are summarized below.

Banks play a major role in influencing the customers to opt for the

ATM services, television and news papers must be used to the fullest extent to influence the customers Customers usually consider locality of ATMs, service, security, more withdrawal facility and reasonable price for owning ATM cards. So there is much scope in improving these fields.

51 percent of the customers use ATMs in the evening hours (5pm

to 10pm). There is a necessity to avoid internet and network problem during the prime hours. Proper maintenance should be done to overcome the technical problems such as out of order situation, frequent repairs, temporary shut-down and satellite problems in order to provide better service to the customers. Deposit problems should be solved by allowing the customers to deposit more amounts at a time and immediately display their account balance.

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 More bank branches should be set in other cities to access money anywhere, any time (online). As many banks are working offline, interconnection with other banks should be provided to access money anywhere, any time.

Service charge should be reduced to encourage more withdrawal

for the customers.

By the survey it is found that 62% of the respondents are willing to

own ATM cards. So these potential customers should be converted in to actual customers by influencing them through proper media and promotional activities. As half of the customers are price sensitive, price should be reduced so that more customers are attracted to own ATM cards.

Security should be provided to the ATM users, as security is the

main reason for not opting of ATM services by the account holders.

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

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QUESTIONNAIRE--ATM USERS Dear sir/madam, I the student of Govt. First Grade college,Shimoga, doing a project on Customer preference of ATMs: An analytical study of AXIS banks in Shimoga. Hence I would be grateful if you would spare your valuable time and co-operate by answering few questions to the best of your knowledge. I assure you that the information collected will be used for academic purpose only and this will help your banker to provide better services to you. Yours Shruthi A.S 1) How did you come to know about ATMs? a) Television b) Magazines c) News papers d) At your bank e) Others specify 2) Which ATM cards do you own? a) SBI b) SYNDICATE c) AXIS d) ICICI 3) What factors necessarily made you to opt for ATM card from this bank only? a) Service b) Security c) Locality d) More withdrawal facility 4) Whether ATM facility is available as per your requirement? a) In terms of time Yes / No b) In terms of location Yes / No

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If No at which place do you require ATM other than branch premises? Please specify a) b) c) d) 5) When do you require ATM mostly? a) Before office hours /06am to 10 am b) During office hours / 10 am to 5 pm c) After office hours/5 pm to 8 pm d) After office hours / 8 pm to 10 pm e) Late night say after 10 pm 6) How often you use the card? a) 5 to 10 times a month c) 20 to 50 times a month e) Never b) 10 to 20 times a month d) Occasionally

7) How do you term it for your usage? a) Withdrawal b) Accessibility c) Emergency d) For Fashion? Status 8) Are you satisfied with services provided by ATM? a) Yes b) No 9) Whether the withdrawal limit prescribed in ATM is sufficient? a) Yes b) No 10) What are the additional services availed by you from ATM? Please specify a) b) c) d) 11) Are you satisfied with cost of this service? a) Yes b) No 12) How much are you prepared to pay for usage of ATMS if additional service like

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Linking of other banks ATMs etc are provides. Please specify__________________________

13) Along with these services what are the additional facilities you expect from banks with respect to ATM cards? a) b) c) d) 14) Have you faced any problems with ATM usage? a) Yes b) No If Yes nature of problems faced? a) b) c) d) 15) How do you compare your ATM service with other banks ATM service? a) Excellent b) Better c) Same d) Worse 16) How do you rate your ATM card system? a) Excellent b) Good c) Average d) Poor 17) Considering the service / benefits / facilities which banks ATM service do you think is better? a) CENTURIAN b) SYNDICATE c) ICICI d) UTI 18) Are you satisfied with the overall services provided by the ATMs? a) Yes b) No If NO please specify the reason 19) Any suggestion for improvement of the ATM system? ________________________________________________ 20) Do you prefer ATM services instead of traditional banking? a) Yes b) No

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22) Your profession / employment / occupation please ______________________ 23) Monthly income a) Less that Rs5000 c) Rs.10001 to Rs.15000 e) Above Rs.25000 b) Rs.5001 to Rs.10000 d) Rs.15001 to Rs.25000

24) Name: _____________________________________________ Sex ________________ Education_____________ Age ________________ Address _____________________________________________ _____________________________________________ _____________________________________________

Phone No _____________________________________________ E-mail Id _____________________________________________ Signature

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BIBILOGRAPHY / REFERENCES

1. Marketing Research By Donald S. Tull & Del I. Hawkins. 2. Marketing and Management By Philip Kotler.(New Delhi, Prentice Hall of India 1999) 3. Marketing Research (The Dryden press illionois, 1979) 4. INTERNET www.syndicatebank.com www.AXISbank.com www.utibank.com

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