SILB, Solan

PROJECT ON CUSTOMER SATISFACTION WITH REGARD TO ATM SERVICES

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR AWARD OF MASTER OF BUSINESS ADMININSTRATION OF HIMACHAL PRADESH UNIVERSITY

SILB, Solan

(SHOOLINI INSTITUTE OF LIFE SCIENCES AND BUSINESS MANAGEMENT, SOLAN) SUBMITTED BY: DINESH VERMA 2008-2010 ROLL NO: - 1285 GUIDED BY - Mr.

Nikhil Uprety

SHOOLINI INSTITUTE OF LIFE SCIENCES AND BUSINESS MANAGEMENT, SOLAN

CERTIFICATE
This is to certify that the FIELD WORK titled CUSTOMER SATISFACTION WITH REGARD TO ATM SERVICES Is a Bona fide work carried out by Mr . DINESH VERMA, student of Master of BUSINESS ADMINISTRATION 2nd year ROLL NO.1285 of SHOOLINI INSTITUTE OF LIFE

SCIENCES AND BUSINESS MANAGEMENT, SOLAN under

HIMACHAL PRADESH University in the Year 2010.

SILB, Solan

Internal guide Mr. Nikhil Uprety

Director Dr. J.B. Nadda

Date: Place: SOLAN

DECLARATION

I DINESH VERMA student of the Master of Business Administration hereby declare that all information, facts and figures in this report are as my own findings and experience in the Solan city of H.P. I also hereby declare that all the facts, figures and information given in this report is absolutely correct.

This information has been used for purely academic purpose.

SILB, Solan

DINESH VERMA MBA Roll. No. 1285

ACKNOWLEDGMENT
The research on CUSTOMER SATISFACTION WITH REGARD TO ATM SERVICES has been given to me as part of the field study in 2-Years Masters Degree in Business Administration. I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies. The successful completion of any project requires guidance and help from number of people. This project report could not have been completed without the guidance of Mr. Nikhil Uprety. In the end, I would also like to thank all faculty members, family, friends, respondents and all those whose names are not mentioned above and who have

SILB, Solan

indirectly helped me in various ways in successfully carrying out the project.

DINESH VERMA

INDEX
S.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. PARTICULARS INTRODUCTION FUNCTIONS OF ATM MACHINES OBJECTIVES OF THE PROJECT IMPORTANCE OF THE STUDY METHODOLOGY OF THE STUDY RESEARCH DESIGN ATM INDUSTRY IN INDIA COMPANY PROFILE (SBI) COMPANY PROFILE (PNB) RECENT NEWS ON ATM SERVICES IN INDIA DATA ANALYSIS AND INTERPRETATION FINDINGS AND CONCLUSION RECOMMENDATIONS
5

PAGE NO. 6 11 12 13 14 16 19 24-43 44-52 53 54-69 70 72

SILB, Solan

14. 15.

BIBLIOGRAPHY QUESTIONNAIRE

73 74

Introduction

An automated teller machine (ATM) or the automatic banking machine (ABM) is a computerized telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date. Authentication is provided by the customer entering a personal identification number (PIN) Using an ATM, customers can access their bank accounts: 1. To make cash withdrawals 2. Check their account balances 3. Exchange rate for foreign travelers. Example- If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e.g.: Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted at a wholesale

SILB, Solan

exchange rate. Thus, ATMs often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well.

History

The idea of self-service in retail banking developed through independent and simultaneous efforts in Japan, Sweden, the United States and the United Kingdom. In the USA Luther George Simjian was developed the first cash dispenser machine in June -30 -1960. The roll out of this machine, called Bankograph, was delayed a couple of years. An experimental Bankograph was installed in New York City in 1961 by the City Bank of New York. A first Cash dispensing device was used in 1966 in Tokyo. ATM first used in December 1972 in UK which is designed by IBM2984.

Other names for ATM machine 1. Automated Transaction Machine 2. Automated banking machine 3. cash point (in Britain), 4. money machine

SILB, Solan

5. bank machine, 6. cash machine 7. hole-in-the-wall, Bancomat (in various countries in Europe and Russia) 8. Multibanco ( in Portugal) 9. Any Time Money (in India).

Locations

Locations means where ATM machines are placed 1. Near or inside the premises of banks 2. Shopping centers/malls 3. Airports 4. Grocery stores 5. Petrol/gas stations 6. Restaurants 7. Any place large numbers of people may gather

Hardware
8

SILB, Solan

An ATM is the typically made up of the following devices: CPU (to control the user interface and transaction devices) Magnetic and/or Chip card reader (to identify the customer) PIN Pad (similar in layout to a Touch tone or Calculator keypad), often manufactured as part of a secure enclosure. Secure crypto processor, generally within a secure enclosure. Display (used by the customer for performing the transaction) Function key buttons (usually close to the display) or a Touch screen (used to select the various aspects of the transaction) Record Printer (to provide the customer with a record of their transaction) Vault (to store the parts of the machinery requiring restricted access) Housing (for aesthetics and to attach signage to) Software With the hardware, standard commercial operating systems and programming environments can be used inside of ATMs. Typical platforms previously used in ATM development include RMX or OS/2. Today the vast majority of ATMs worldwide use a Microsoft OS, primarily Windows XP Professional or Windows XP Embedded. A small number of deployments may still be running older versions such as Windows NT, Windows CE or Windows 2000. Notably, Vista was not widely adopted in ATMs.

How ATM Machine Works Process for withdraw cash 1. After the customer ATM card is approved the screen shows list of operation. 2. After amount of withdraw is entered the ATM opens one of four boxes by activating a door that rolls up to expose the face of a bill 3. At same time a suction device pulls the correct number of bill.
9

SILB, Solan

4. The bills are placed on rollers and moved to holding area until they are dispensed. 5. If the wrong number of bill is pulled or the bill is damaged the ATM machine. Drop that bill into reject box and repeat the process. 6. The bills are dispensed. 7. A receipt is printed and transaction is recorded.

Process for deposit of money 1. After the customer ATM card is approved the screen shows list of operation. 2. Once a deposited envelope is filled out and inserted into a deposit slot , it is pulled by rollers into a box. 3. Before it is dropped into bank the date, users bank account number and deposit total are printed on envelope. 4. A receipt or a complete bank statement is printed, and the transaction is recorded.

A Sun Corp Metway ATM running OS/2

10

SILB, Solan

A Wincor Nixdorf ATM running Windows 2000

Security
Customer identity integrity To verify cardholder identities have been tested and deployed in some countries, such as finger and palm vein patterns and facial recognition technologies. However, recently, cheaper mass production equipment has been developed and being installed in machines globally that detect the presence of foreign objects on the front of ATMs, current tests have shown 99% detection success for all types of devices. ATMs are often covered by mechanical shutters to prevent tampering with the machines when they are not in use. Alarm sensors are placed inside the ATM and in ATM servicing areas to alert their operators when doors have been opened by unauthorized personnel. Rules are usually set by the government or ATM operating body that dictate what happens when integrity systems fail.

Functions of ATM machine

Deposit currency recognition, acceptance, and recycling Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.) Printing bank statements Updating passbooks
11

SILB, Solan

Loading monetary value into stored value cards Purchasing Postage stamps Lottery tickets Train tickets Concert tickets Movie tickets Shopping mall gift certificates. Games and promotional features

Objectives of the Project

To see if the customer is satisfied with ATM facility? What are the shortcomings, which need attention? To draw Comparison between the facilities provided in terms of ATM services of SBI and PNB
12

SILB, Solan

Importance of the study

It is aimed to study the Customer

Preference towards ATM Services of Punjab National Bank and State Bank of India. The project analyzed the demographic, psychographic and preference characteristics
13

SILB, Solan

of the customers in using ATM. It includes the detailed study of customers focusing on the various parameters that lead to identifying and understanding the perception of the customer and behavior regarding services offered by SBI and PNB. SBI and PNB both are public sector bank and enjoy the loyalty of customers due to their work quality and long era of services. So it becomes important to reveal a correct diagram and impact of the ATM services provided by it maintaining their dignity and position

METHODOLOGY OF STUDY:

14

SILB, Solan

Research can be defined as a systemized effort to gain new knowledge. A research is carried out by different methodologies which have their own pros and cons. Research methodology is a way to solve research in study and solving research problems along with logic behind them are defined through research methodology. Thus while talking about research methodologies we are not only talking of research methods but also consider the logic behind the methods. We are in context of our research studies and explain why it is being used a particular method or technique and why the others are not used. So that research result is capable of being evaluated either by researcher himself or by others. ASSUMPTIONS: 1. It has been assumed that sample of hundred represents the whole population 2. The information given by the customer is unbiased

LITERATURE SURVEY: The project is based on pure findings of facts COLLECTION OF DATA: This research is solely based on primary research done by means of questionnaires targeted to respondents who primarily belong to the business and service sector. The sample size is 100. Survey has been conducted in Solan Region.

EXECUTION OF PROJECT

15

SILB, Solan

It is very essential in the research process to know the accuracy of the findings which depends on how systematically the study has been carried out so that it can make sense. We have executed the project after prior discussion with our guide and structured in the following steps: a. Preparation of a questionnaire b. The focal point of the designing the questionnaire was to comprehend the current investment scenario. c. This questionnaire was primarily aimed to respondents who belong to the service, students and business class people. d. The questionnaires were discussed through personal interface with the respondents.

16

SILB, Solan

Research Design Exploratory Information pertaining to ATM usage in Solan will be collected from various banks. Concerned persons at various banks will be interviewed. Information will also be collected from customers using ATM facility and their attitude towards the same will be studied. Questionnaire A questionnaire will be administered to the current ATM users of various banks in Solan, personally by the research team. The questionnaire will contain not more than 18 questions.

SAMPLING PLAN Relevant Population People using SBI and PNB Banks ATM cards in Solan City.

Sample Size Sample of 100 will be taken from Solan City

17

SILB, Solan

ATM REVOLUTION IN BANKING INDUSTRY

As is often the case with inventions, many inventors contribute to the history of an invention. In the case of the ATM, Don Wetzel invented the first successful and modern ATM in the USA, however he was not first inventor to create an ATM. In 1939, Luther George Simjian started patenting an earlier and not-so-successful version of an ATM. An automatic teller machine or ATM allows a bank customer to conduct their banking transactions from almost every other ATM machine in the world. Don Wetzel Don Wetzel was the co-patentee and chief conceptualist of the automated teller machine, an idea he said he thought of while waiting in line at a Dallas bank. At the time (1968) Wetzel was the Vice President of Product Planning at Docutel, the company that developed automated baggage-handling equipment. It took five million dollars to develop the ATM. The concept of the modern ATM first began in 1968, a working prototype came about in 1969 and Docutel was issued a patent in 1973. The first working ATM was installed in a New York based Chemical Bank. The first ATMs were off-line machines, meaning money was not automatically withdrawn from an account. A computer network to the ATM. not (at that time) connected the bank accounts. Therefore, banks were at first very exclusive about who they gave ATM privileges to. Giving them only to credit card holders (credit cards were used before ATM cards) with good banking records. Wetzel, Barnes and Chastain developed the first real ATM cards, cards with a magnetic strip and a personal ID number to get cash. ATM cards had to be different from credit cards (then without magnetic strips) so account information could be included (http://inventors.about.com/library/inventors/blatm.htm)
18

SILB, Solan

Luther George Simjian 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. "It seems the only people using the machines were a small number of prostitutes and gamblers who didn't want to deal with tellers face to face," wrote Simjian. Later, of course, the idea caught on, and today, modern versions of the automatic teller machine stand on nearly every street corner. Despite the notoriety that came with his ATM concept. (http://web.mit.edu/invent/iow/simjian.html) Cash Technologies, Inc. Introduces New Transaction Processing System to Revolutionize the Traditional ATM According to ATM developer and Docutel employee Don Wetzel, "We never did see the ATM as just a cash dispenser. We thought it had to be a machine that did most of the functions of a teller including transferring money, taking payments and issuing cash advances. But, nearly 30 years later, the ATM is still not much more than a cash dispenser. In fact, out of the nearly 220,000 ATMs installed in the U.S., research shows nearly half provide only cash dispensing transactions. And, only five percent of the remaining ATMs do anything more than the original, basic bank account functions -- even though consumers are demanding more twenty-four hour services from their local bank.

19

SILB, Solan

ATM INDUSTRY STATUS IN INDIA

In India ATM is still a new technology. With the emergence of private sector Banks like ICICI Bank, IDBI Bank, HDFC Bank etc. the number of ATM centers has increased tremendously. There are presently all types of Banks offering ATM services. For example State Bank of India (a Public Sector Bank), ICICI Bank (a Private Bank), Citibank (A Foreign Bank), Greater Bombay CO-OP Bank (a co-op Bank). The Banks are offering various services like Cash withdrawal, fund transfer, Balance enquiry etc. The Banks have tie-ups in between them for sharing of their services this may be bilateral or multilateral by way of consortium like SWADHAN.

20

SILB, Solan

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

21

SILB, Solan

participating banks customers across the country. With SWADHAN, the bank customers are never far away from an ATM. The member banks customer 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 transfer and deposits. SWADHAN widens the scope of ATM usage in the country in a cost effective manner. A member bank of SWADHAN can increase 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 transaction per day in the SWADHAN network is 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 Network was only around 24, whereas today it is grown close to 1000 ATMs. Today, in the country, 25% of the ATMs are networked to SWADHAN. Everyday brings new ATMs and banks to the network. Being the leading light in Shared Payment Network System for debit cards in India, it has auspicious plans to provide connectivity to the international payment networks, such as master card and visa in a very formidable way. It is poised to enable the existing system for e-payments thereby helping the banks excel in an epowered service.

22

SILB, Solan

ATM SERVICES OF PNB & SBI BANK IN INDIA

As part of its 'Clicks and Bricks' strategy, both SBI and PNB Banks have developed multiple access channels comprising lean brick and mortar branches, ATMs, call centers and Internet banking. The branch network including extension counters presently covers many locations across India. SBI and PNB Banks network of 24 hr ATMs is one of the largest and most widespread ATM Networks in India. Banks ATMs are conveniently located in Commercial areas, residential localities, Major Petrol Pumps and Airports, Near Railway Stations and other places, which are conveniently accessible to customers. The SBI and PNB Banks ATMs feature user-friendly graphic screens with easy to follow instructions. IT has also introduced ATMs, which interact with customers in local languages for further convenience. The following are the features available on SBI and PNB Banks ATMs, which can be accessed from anywhere at any time. Cash Withdrawal: A customer can withdraw up to Rs.25,000/- on a single day from his account. In this, the Fast Cash option shows prefixed amounts, which a customer can choose from, and Ultra Fast Cash option to withdraw Rs.3000/- at one time.

23

SILB, Solan

Balance Enquiry: Customer can know the ledger balance and available balance with his account. Mini Statement: Customer gets a receipt printout of his last 8 transactions and the balance. Deposit Cash / Cheques: Available in all full function ATMs, customers can deposit both cash and cheques in the ATM. Cash deposited in ATMs will be credited to the account on the same day and cheques sent for clearing on the next working day. Funds Transfer: Customer can transfer funds from one account to another linked account in the same branch. PIN Change: The Customer Change the Personal Identification Number (PIN) of the ATM or Debit card. Payments: This is the latest feature on Banks ATMs, its functionality can be used for payment of bills, donating to temples / trusts or making airtime recharges for prepaid mobile phones.

24

SILB, Solan

COMPANY PROFILE

25

SILB, Solan

ABOUT SBI

The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways.
BOARD OF DIRECTORS
Central Board of State Bank of India (As on 13th May 2009)

Sr. No. Name of Director Shri O.P. Bhatt 1. Chairman Shri S.K. Bhattacharyya 2. MD & CC&RO Shri R. Sridharan 3. MD & GE(A&S) 4. Dr. Ashok Jhunjhunwala 5. Shri Dileep C. Choksi 6. Shri S. Venkatachalam 7. Shri. D. Sundaram 8. Dr. Deva Nand Balodhi 9. Prof. Mohd. Salahuddin Ansari 10. Dr.(Mrs.) Vasantha Bharucha 11. Dr. Rajiv Kumar 12. Shri Ashok Chawla 13. Smt. Shyamala Gopinath

Sec. of SBI Act, 1955 19(a) 19(b) 19(b) 19(c) 19(c) 19(c) 19(c) 19(d) 19(d) 19(d) 19(d) 19(e) 19(f)

TRANSFORMATION JOURNEY IN STATE BANK OF INDIA

26

SILB, Solan

The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits is today going through a momentous phase of Change and Transformation the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money. The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc each one of these initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and proposes to cover 100,000 villages in the next two years. It is also focusing at the top end of the market, on whole sale banking capabilities to provide Indias growing mid / large Corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian

27

SILB, Solan

customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc. With four national level Apex Training Colleges and 54 learning Centers spread all over the country the Bank is continuously engaged in skill enhancement of its employees. Some of the training programs are attended by bankers from banks in other countries. The bank is also looking at opportunities to grow in size in India as well as internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings. Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In a recently concluded mass internal communication program termed Parivartan the Bank rolled out over 3300 two day workshops across the country and covered over 130,000 employees in a period of 100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme.

28

SILB, Solan

EVOLUTION OF SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was redesigned as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

Bank of Bengal H.O.

29

SILB, Solan

Establishment The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially up to the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the investible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

30

SILB, Solan

Group Photograph of Central Board (1921)

Business The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden.

31

SILB, Solan

Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

Old Bank of Bengal

Major change in the conditions A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper currency within British India. The task of management and circulation of the new currency notes was conferred on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. None of the three banks had till then any branches (except the sole attempt and that took a short32

SILB, Solan

lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centers in India. While the Bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.

Bank of Madras Note Dated 1861 for Rs.10 Presidency Banks Act The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidency banks under a common statute with similar restrictions on business. The proprietary connection of the Government was, however, terminated, though the banks continued to hold charge of the public debt offices in the three presidency towns, and the custody of a part of the government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which sums above the specified minimum balances promised to the presidency banks at only their head offices were to be lodged. The Government could lend to the presidency banks from such Reserve Treasuries but the latter could look upon them more
33

SILB, Solan

continent. While the Banks of Bengal and Bombay were engaged in the financing of large modern manufacturing industries, the Bank of Madras went into the financing of large modern manufacturing industries; the Bank of Madras went into the financing of small-scale industries in a way which had no parallel elsewhere. But the three banks were rigorously excluded from any business involving foreign exchange. Not only was such business considered risky for these banks, which held government deposits, it was also feared that these banks enjoying government patronage would offer unfair competition to the exchange banks which had by then arrived in India. This exclusion continued till the creation of the Reserve Bank of India in 1935.

Bank of Bombay Presidency Banks of Bengal The presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in 1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and a giant among Indian commercial banks had emerged. The new bank took on the triple role of a commercial bank, a banker's bank and a banker to the government. But this creation was preceded by years of deliberations on the need for a

34

SILB, Solan

'State Bank of India'. What eventually emerged was a 'half-way house' combining the functions of a commercial bank and a quasi-central bank. The establishment of the Reserve Bank of India as the central bank of the country in 1935 ended the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to the Government of India and instead became agent of the Reserve Bank for the transaction of government business at centers at which the central bank was not established. But it continued to maintain currency chests and small coin depots and operate the remittance facilities scheme for other banks and the public on terms stipulated by the Reserve Bank. It also acted as a bankers' bank by holding their surplus cash and granting them advances against authorized securities. The management of the bank clearing houses also continued with it at many places where the Reserve Bank did not have offices. The bank was also the biggest tenderer at the Treasury bill auctions conducted by the Reserve Bank on behalf of the Government. The establishment of the Reserve Bank simultaneously saw important amendments being made to the constitution of the Imperial Bank converting it into a purely commercial bank. The earlier restrictions on its business were removed and the bank was permitted to undertake foreign exchange business and executor and trustee business for the first time. Imperial Bank The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits,

35

SILB, Solan

investments and advances, the increases in some cases amounting to more than six-fold. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform. But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life.

Stamp of Imperial Bank of India When India attained freedom, the Imperial Bank had a capital base (including reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub offices extending all over the country. First Five Year Plan In 1951, when the First Five Year Plan was launched, the development of

36

SILB, Solan

rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

37

SILB, Solan

ATM SERVICES
STATE BANK NETWORKED ATM SERVICES State Bank offers you the convenience of over 8000 ATMs in India, the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, and State Bank of Travancore) and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card. KINDS OF CARDS ACCEPTED AT STATE BANK ATMs Besides State Bank ATM-Cum-Debit Card and State Bank International ATMCum-Debit Cards following cards are also accepted at State Bank ATMs: 1) State Bank Credit Card 2) ATM Cards issued by Banks under bilateral sharing viz. Andhra Bank, Axis Bank, Bank of India, The Bank of Rajasthan Ltd., Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, Indus Ind Bank, Punjab National Bank, UCO Bank and Union Bank of India. 3) Cards issued by banks (other than banks under bilateral sharing) displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos

38

SILB, Solan

4) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos Note: If you are a cardholder of bank other than State Bank Group, kindly contact your Bank for the charges recoverable for usage of State Bank ATMs. State Bank ATM-cum-Debit (State Bank Cash plus) Card: Indias largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in your wallet. You can now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card. Features: Withdraw cash from over 8000 ATMs of our group FREE and about 16000 ATMs of other banks under bilateral sharing viz. Andhra Bank, Axis Bank, Bank of India, The Bank of Rajasthan Ltd. Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, IndusInd Bank, Punjab National Bank, UCO Bank and Union Bank of India apart from ATMs displaying Master Card/ Maestro/Cirrus logo for a nominal fee as under: Transaction ATMs of Sharing network banks Rs. 25/- * Rs. 12/-* Other banks under Maestro/ Master Card/ Cirrus network Rs. 50/-* Rs. 12/-*

Cash Withdrawal Balance Inquiry

39

SILB, Solan

Make payments for purchases by using the debit card at more than 2,39,000 shops, restaurants, shopping malls, hotels, petrol pumps and many other outlets which display Maestro logo. Recharge pre-paid mobile phones of Vodafone, IDEA and BPL without any charges at any State Bank ATM. Recharge pre-paid mobile phones of AIRTEL of 11 Circles viz. Mumbai, Delhi, Gujarat, M.P., U.P. (East), U.P. (West), Karnataka, Kerala, Andhra Pradesh, Tamilnadu, and Chennai, through ATM/ SMS anywhere in India. Recharge mobile phones of AIRTEL, Vodafone, IDEA and BPL without any charges at all ATMs as well as by sending SMS (after registration at State Bank ATM).The text of SMS will be as under: -

Service Provider Airtel BPL Vodafone IDEA

SMS Text RC (AMOUNT) PIN RC SBI (AMOUNT) PIN RC SBI (AMOUNT) PIN RC SBI (AMOUNT) PIN

Send SMS to 535 140 147 575

Pay MTNL, Mumbai bills through State Bank ATMs Payment of SBI Credit Card bills

40

SILB, Solan

Payment of SBI Life insurance premium Pay fees of select colleges Donate to Temple Trusts: - (a) Vaishno Devi (b) Shirdi Saibaba (c) Gurudwara Takht Saheb, Nanded (d) Tirupati and (e) Sri Jagannath Temple, Puri Transaction Limits: Daily limit of Rs 25,000/- at the ATM Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions Combined daily limit of Rs 75,000/Fees: There is no joining fee for State Bank ATM-cum-Debit (Cash Plus) card. Annual maintenance fee of Rs. 50/- p.a. will be recovered from the second year of issue. Apply for your card If you already have a Savings Bank or Current Account with us, apply for State Bank ATM-cum-Debit (Cash Plus) card at your branch. State Bank Cash plus International Card: This is an International ATM-cum-Debit Card with which you can enjoy shopping at over 2,64,000 establishments in India and over 10.5 Million establishments worldwide displaying Maestro logo, wherein the amount you spend on your card is automatically debited to your account. Withdraw cash from over 8000 ATMs of our group FREE and over 16000 ATMs of other banks under bilateral sharing viz.
41

SILB, Solan

Andhra Bank, Axis Bank, Bank of India, The Bank of Rajasthan Ltd. Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, IndusInd Bank, Punjab National Bank, UCO Bank and Union Bank of India apart from ATMs displaying Master Card/ Maestro / Cirrus logo in India and more than 8,20,000 ATMs across the globe for a nominal fee. In India, it would function as the State Bank ATMcum-Debit (Cash Plus) card. WITHDRAWAL LIMIT: i) Cash Withdrawals (per day):

India Minimum Rs. 100

Abroad Depends on the Bank whose ATM is being used

Maximum

Rs. 45000

US$1000 or equivalent

ii) Transaction at POS (per day): India Abroad

42

SILB, Solan

Maximum

Rs. 1,00,000

US$1000 or equivalent

Maximum permitted aggregate utilization in a day is Rs. 145000 in India and equivalent to US$ 2000 abroad (subject to compliance with the RBI and Exchange Control/ FEMA Regulations)

TRANSACTION COSTS: The Card holder's account is liable to be debited with the following fees, if the transaction is made at an ATM owned by bank other than SBI and its Associates: -

Type of transaction

Transactions at ATMs of Banks under arrangements for Bilateral Sharing

Transactions at ATMs of other Banks under Maestro / Master Card/ Cirrus

Transactions at ATMs under Maestro / Master Card/ Cirrus network (Abroad) (C) Rs. 150/- *

of ATM Network network (In India) (A) Cash Withdrawal Balance Inquiry Rs. 12/- * Fees: Rs. 12/- * Rs. 25/- * (B) Rs. 50/- *

Rs.15/- *

43

SILB, Solan

The State Bank Cash plus International Card is available for one time joining fee of Rs 200/-. Annual maintenance fee of Rs. 50/- p.a. will be recovered from the second year of issue.

COMPANY PROFILE

44

SILB, Solan

PUNJAB NATIONAL BANK

45

SILB, Solan

PROFILE

46

SILB, Solan

With over 38 million satisfied customers and 4668 offices, PNB has continued to retain its leadership position among the nationalized banks. The bank enjoys strong fundamentals, large franchise value and good brand image. Besides being ranked as one of India's top service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart from offering banking products, the bank has also entered the credit card & debit card business; bullion business; life and non-life insurance business; Gold coins & asset management business, etc. Since its humble beginning in 1895 with the distinction of being the first Indian bank to have been started with Indian capital, PNB has achieved significant growth in business which at the end of March 2009 amounted to Rs 3,64,463 crore. Today, with assets of more than Rs 2,46,900 crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has the 2nd largest network of branches (4668 including 238 extension counters and 3 overseas offices).During the FY 2008-09, with 39% share of low cost deposits, the bank achieved a net profit of Rs 3,091 crore, maintaining its number ONE position amongst nationalized banks. Bank has a strong capital base with capital adequacy ratio as per Basel II at 14.03% with Tier I and Tier II capital ratio at 8.98% and 5.05% respectively as on March09. As on March09, the Bank has the Gross and Net NPA ratio of only 1.77% and 0.17% respectively. During the FY 2008-09, its ratio of priority sector credit to adjusted net bank credit at 41.53% & agriculture credit to adjusted net bank credit at 19.72% was also higher than the respective national goals of 40% & 18%. PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit. The bank has made rapid strides in this direction. Along with the achievement of 100% branch computerization, one of the major
47

SILB, Solan

achievements of the Bank is covering all the branches of the Bank under Core Banking Solution (CBS), thus covering 100% of its business and providing Anytime Anywhere banking facility to all customers including customers of more than 2000 rural branches. The bank has also been offering Internet banking services to the customers of CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc. Towards developing a cost effective alternative channels of delivery, the bank with more than 2150 ATMs has the largest ATM network amongst Nationalized Banks. With the help of advanced technology, the Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. With its policy of inclusive growth in the Indo-Gangetic belt, the Banks mission is Banking for Unbanked. The Bank has launched a drive for biometric smart card based technology enabled Financial Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile customer. The BC/BF will address the outreach issue while technology will provide cost effective and transparent services. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers, vegetable vendors, dairy farmers, construction workers, etc. The Bank has already achieved 100% financial inclusion in 21,408 villages. Backed by strong domestic performance, the bank is planning to realize its global aspirations. In order to increase its international presence, the Bank continues its selective foray in international markets with presence in Hongkong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway. A second branch in Hongkong at Kowloon was opened in the first week of April09. Bank is also in the process of establishing its presence in China, Bhutan, DIFC Dubai, Canada and Singapore. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal. Under the long term vision, Bank proposes to start its operation in Fiji Island,
48

SILB, Solan

Australia and Indonesia. Bank continues with its goal to become a household brand with global expertise. Amongst Top 1000 Banks in the World, The Banker listed PNB at 250th place. Further, PNB is at the 1166th position among 48 Indian firms making it to a list of the worlds biggest companies compiled by the US magazine Forbes. Financial Performance: Punjab National Bank continues to maintain its frontline position in the Indian banking industry. In particular, the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches, Deposit, Advances, total Business, operating and net profit in the year 2008-09. The impressive operational and financial performance has been brought about by Banks focus on customer based business with thrust on SME, Agriculture, more inclusive approach to banking; better asset liability management; improved margin management, thrust on recovery and increased efficiency in core operations of the Bank. The performance highlights of the bank in terms of business and profit are shown below:

Debit Card
49

SILB, Solan

PNB INTRODUCES ADD-ON DEBIT CARD :-

Share the convenience of PNB Debit card with your loved ones .Simply gift them add-on card. PNB Customers of CBS branches can get two add-on cards along with their own Debit card for free. The person you are gifting the card to does not necessarily have to be an account holder with PNB. The add-on card can be issued in the name of spouse, dependent parents, and dependent children not below 18 years. The add-on cardholders like the main cardholder will also be covered for accidental death insurance of Rs. 1 lakh subject to certain terms and conditions. The transactions done by add-on cardholders will automatically get debited to the account of the primary cardholder who shall be responsible for all the transactions made by Add On card holder/s.

Issuance of Debit Card from Call centre:"CBS branches customers of our Bank may also get PNB Debit Card simply by contacting our All India Call Center over phone at the following no's :1800 180 2222 Toll free 0124-2340000 Accessible from mobile also.

ATM Sharing Arrangements

50

SILB, Solan

PNB Debit Card is purely an on-line product. It is ATM-cum-Debit card having Maestro branding which is sub-brand of MasterCard International. PNB Debit Card bears Maestro logo on the front and Cirrus logo (for ATM usage) on the back. Debit Cards can be used to withdraw cash through ATMs as well as used by the customers at over 45000 merchant establishments accepting Maestro Debit Card for shopping purposes. It is thus an ATM-cum-Shopping Card. Personal Identification Number (PIN) is the key security feature of the Debit Card. It is a four digit numerical number. A few aspects of Banks Debit Card are highlighted as under: Valid in all Maestro and Cirrus Acceptance Marks. Acceptance in India at over 32,000 Maestro Merchant locations and over 4200 MasterCard ATMs across 70 cities. Wide acceptance at both Merchant Locations (including Utility bill payment) and ATM locations across India A PIN (Personal Identification Number) based magnetic Stripe Card which provides the safety and security to customers, while accessing their funds with the bank

PIN can be changed at all PNB networked ATMs Initially available to account holders of CBS branches that are networked It is offered absolutely FREE

51

SILB, Solan

No pre-set limit on the card. Limit is equal to the available funds in the customers account. Initially Rs.15,000 cash withdrawals and Rs.25,000 by way of point of sale (POS) transactions per day are permitted

Card validity - Till the customer holds the account

Bank has tied up with Reputed Corporate and Local Merchants to provide discounts on usage of card for payment through Debit Card. Corporate from the entire spear are covered, to quote few are like Escorts, Max Health Care, Apollo, Travel Gin, Cox and Kings, Holyday INN, Hans, Park. A list of tieups is available

Charges applicable: Cash Withdrawal - Rs. 24/- per transaction Balance Enquiry- Rs. 12/- per transaction

PNB~SBI Bilateral ATM Sharing arrangement: Charges applicable: Cash Withdrawal - Rs. 22/- per transaction Balance Enquiry- Rs. 10/- per transaction

52

SILB, Solan

Branches eligible to issue Debit Cards: Initially Debit Cards are issued to the customers of CBS branches only. All the CBS branches are eligible to issue Debit Cards to their customers Who is eligible for PNB Debit Card? All existing customers who are maintaining minimum balance and who regularly operate their account shall be eligible for the issuance of Debit Card. New customers who open their accounts after introduction of the Debit Card shall also be eligible for the issue of Debit Cards at the time of opening the account itself. Existing ATM Cardholders who have done at least one transaction during the immediately preceding quarter. Debit Card facility shall be extended to the individual customers only, having Savings Bank Account and Current Account. Debit cards shall also be issued to individual customers having overdraft facility, which is in the nature of a personal loan. This shall mean and include personal loans extended to individual customers in the form of a regular overdraft limit such as clean overdraft facility or overdraft facility against FD/NSCs/LICs etc. where operations through cheques are permitted. Debit Card can be issued in Joint Accounts with Either or Survivor/Former or Survivor mandate. In Either or Survivor accounts cards can be issued to both the account holders whereas in Former or Survivor accounts card can be issued only to the Former. In joint Accounts where account has to be jointly operated Debit Card shall not be issued unless mandate for operation of account is changed to Either or Survivor or Former or Survivor basis.

53

SILB, Solan

RECENT NEWS ON ATM SERVICES IN INDIA

ATM withdrawal fees from 15/10/2009. The news articles state that as per Indian Banks Association recommendation, Reserve Bank of India has asked the banks to impose the restrictions on third party ATM usage from mid-October. As a result, the number of free cash-withdrawals from third-party ATMs will attract a charge. The transaction limit is set at Rs10,000/Saving Account Holders can withdraw five times in a month free of-cost. From the sixth transaction, the fee is Rs20/Current Account Holders will be charged from the first transaction itself. BALANCE ENQUIRY is still free.

54

SILB, Solan

Finding and Data Analysis

Q1. Do you have account in? Table 1 Punjab National Bank State Bank of India Both Others 48 14 24 14

Interpretation
As the diagram shows the no. of respondents in Solan. It has a proper mix of different banks ATM card holders. PNB has the largest no. of customers having 48% and after this came SBI having 14% of customers out of 100 respondents.

55

SILB, Solan

Q2.

Do you have ATM Services with your account?

Table 2 Yes No 100 0

Interpretation

All the respondents have the ATM cards of their bank so this reveals that people are more relying on ATMs these days more than visiting their respective banks.

56

SILB, Solan

Q3.

Which of these is the most important reason for possessing ATM card/s?

Table 3 Bank offered Free For emergency purpose Availability of many ATM centres 24 hour accessibility Others 32 62 34 80 6

Interpretation
According to people the most popular reason for possessing an ATM card is its facility of 24 hours accessibility. After this came respondents who feel that ATMs are mostly used for emergency purpose.

57

SILB, Solan

Q4.

How frequently do you use ATM card in a week? Table 4

Less than 3 times 3-5 times 5 to 8 More than 8 times

52 18 14 16

Interpretation
Most of the people use their ATMs for less than 3 times in a week having 52% of people in its share. 18% of people use their ATMs for 3 -5 times a week.

58

SILB, Solan

Q5.

What is the purpose/s for using ATM? (Tick one or more) Table 5

Cash Withdrawal Balance Inquiry Balance Transfer Others

100 54 36 6

Interpretation
Majority of people use their ATMs for cash withdrawal purpose having 51% of share. Only 27% of people use their ATMs for balance enquiry.

59

SILB, Solan

Q6.

How much time do you spend waiting in queue at ATM?

Table 6 PNB (48/100 Customers) Less than 5 min 5 min to 10 min 10 min or more 32 10 6 SBI(14/100 Customers) 14 0 0

Interpretation
All SBI customers agree to this statement that they dont need to wait much in a queue. They all spend less than 5mins waiting in queue.
Only

66 % of PNB customers agree that they have to wait less than 5 mins in

a queue. 21% people have to wait for 5 mins to 10 mins.

60

SILB, Solan

Q7. How long does it take to process your transaction at the ATM centre? Table 7 PNB (48/100 Customers) Less than 5 min 5 min to 10 min 10 min or more 44 4 0 SBI(14/100 Customers) 10 4 0

Interpretation
92% of PNB customers said that the transaction processing speed of an ATM is good as it takes less than 5 mins. 71% of SBI customers feel that processing speed takes less than 5 mins.

61

SILB, Solan

Q8.

Have you ever been cheated or your ATM has been misused without your permission

Table 8 PNB (48/100 Customers) Yes No 1 47 SBI(14/100 Customers) 0 14

Interpretation
A good thing comes in the survey that almost 100% of the people of both SBI and PNB ATM card holders not been in any kind of fraud like misused or cheated.

62

SILB, Solan

Q9.

Did you complaint for the fraud and any action taken by Bank Authority

Table 9 PNB (1/48 Customers) Yes No 1 0 SBI(0/14 Customers) 0 0

Interpretation
Only one of the customer of PNB has a complaint of his ATM been misused which is even resolved by PNB but maximum no. of people have never been cheated.

63

SILB, Solan

Q10.

What are the additional services provided by your bank at ATM centres? (Tick one or more)

Table 10 PNB (48/100 Customers) Cash Deposit Cheque Deposit Bill Payments Phone bank Other NA NA NA NA NA SBI (14/100 Customers) NA NA NA NA NA

Interpretation
This question becomes invalid in Solan as none of the ATM centres in Solan provide any kind of service like cash deposit, cheque deposit, bill payments, and phone bank.

64

SILB, Solan

Q11.

How much satisfied are you with your ATM service?

Table 11 PNB (48/100 Customers) Highly Satisfied Very Satisfied Satisfied Less Satisfied Not Satisfied 02 14 32 0 0 SBI(14/100 Customers) 04 06 04 0 0

Interpretation
67% of PNB customers are satisfied with the services of their ATM and 29% are very satisfied.

65

SILB, Solan

44% of SBI customers are very satisfied and only 28% are highly satisfied from the services of their ATM.

Q12.

How much secured do you feel to use ATM card?

Table 12 PNB (48/100 Customers) Highly Secured Very Secured Secured Less Secured Not Secured 06 03 37 02 0 SBI (14/100 Customers) 0 10 04 0 0

Interpretation
77% of PNB customers feel secured and only 13% fell highly secured which is a good sign for PNB.

66

SILB, Solan

72% of SBI customers feel very secured and only 28% feel secured in using their ATM.
Q13. Are you satisfied with the number of ATM centres provided by your bank? Table 13 PNB ( 48/100 Customers ) Highly Satisfied Very Satisfied Satisfied Less Satisfied Not Satisfied 08 12 12 10 06 SBI (14/100 Customers) 02 06 04 0 02

Interpretation
Only 25% of PNB customers feel satisfied with the number of ATMs while same is the case with very satisfied customers.

67

SILB, Solan

21% of PNB customers are not satisfied with the number of ATM. 44% of SBI customers feel very satisfied with the number and 28% fell only satisfied with the number of ATM.
Q14. Are you satisfied with the locations of ATM centres provided by your bank? Table 14 PNB ( 48/100 Customers ) Highly Satisfied Very Satisfied Satisfied Less Satisfied Not Satisfied 14 08 16 10 0 SBI (14/100 Customers) 02 02 04 06 0

Interpretation

68

SILB, Solan

43% of SBI customers are not satisfied with the location of ATM centres while PNB has 22% of customers feel the same. 33% of PNB customers feel satisfied with the location and 29% of SBI customers feel the same.
Q15. Do the ATM centres provide the denominations of currency you require? Table 15 PNB (48/100 Customers) Always Sometimes Never 0 38 10 SBI(14/100 Customers) 02 06 06

Interpretation
79% of PNB customers feel that ATMs provide the denomination of notes only sometimes.
69

SILB, Solan

21% of PNB customers feel that they never provide the denomination they want. 43% of SBI customers feel that ATMs provide the denomination of notes only sometimes.

43% of SBI customers feel that they never provide the denomination they want.

Q16.

Do they run out of cash frequently?

Table 16 PNB (48/100 Customers) Always Sometimes Never 02 40 06 SBI(14/100 Customers) 02 12 0

Interpretation

70

SILB, Solan

83% of PNB customers feel that, yes they sometimes run out of cash. 86% of SBI customers feel that, yes they sometimes run out of cash. 14% of SBI customers feel they always run out of cash.

FINDINGS AND CONCLUSION

This project was a great experience for me and I really learnt a lot of things from this project. This project gave us the knowledge and information about ATM machines, banks offering ATM services and also about the people and their attitudes and perceptions towards ATMs. I have found, People want the ATM centers to be very close to their houses or place of work. People want that they should not be made to wait in queues in front of ATM centers. The ATM machines sometimes take a lot of time to process a transaction and therefore the customers have to wait for a long time in front of the machine and which is irritating according to some respondents and if possible the banks should improve the software they use and reduce the time required by the customers.
71

SILB, Solan

PNB and SBI ATM centers do not provide additional services like cash deposit, cheques deposit, bill payments etc. at any of its centers in Solan, which many people want but they dont get it and leads to their dissatisfaction. I have also found in this survey that many of the respondents felt that they were feeling secured using the PNB and SBI ATM card services and this has led to increased satisfaction level of these respondents which is a good sign. I also conclude from this survey that most of the people are not satisfied with the number and location of the PNB and SBI ATM centers. So they insisted that the number should be increased to give enhanced service and satisfaction to its customers. People were not happy to say that the PNB and SBI ATM center provides the currency in the denomination they want. Another good finding from this survey was that the ATM centers of PNB and SBI bank only run out of cash sometimes even though it is one of the largest used ATM centers.

72

SILB, Solan

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 PNB and SBI banks ATM centers. I recommend that, PNB and SBI 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. PNB and SBI 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. PNB and SBI ATM is one of the safest but still there is scope for improvement.

73

SILB, Solan

Cash less than 100 Rs. should be dispensed from ATM to maintain the savings and satisfaction level of customers.

Voice response system enabled ATM machines should be installed to make machines friendlier to customers.

ANNEXURE
BIBLIOGRAPHY
www.pnbindia.in www.statebankofindia.com www.scribd.com http://www.google.co.in/ Research Methodology C R Kothari Marketing Management Philip Kotler Kotler on Marketing It is no longer enough to satisfy customers. You must delight them.

74

SILB, Solan

QUESTIONNAIRE Name____________________________ Age ___ Profession ________________________ Q1. Do you have account in? a) PNB c) Both Q2. b) SBI d) others _______________ (specify)

Do you have ATM Services with your account? a) Yes b) No

Q3.

Which of these is the most important reason for possessing ATM card/s? (Tick one or more) a.) Bank offered Free c.) Availability of many ATM centres e) Others (specify) ________________ b) For emergency purpose d.) 24 hour accessibility

Q4

How frequently do you use ATM card in a week? a.)Less than 3 times c.)5 8 times b.)3 5 times d.)More than 8 times

Q5.

What is the purpose/s for using ATM? (Tick one or more) a)Cash withdrawal c) Balance Transfer b)Balance enquiry d) Other (Specify)______________

Q6.

How much time do you spend waiting in queue at ATM? Less than 5 mins 5 mins to 10 mins 10 mins or more

Q7.

How long does it take to process your transaction at the ATM centre?

75

SILB, Solan

Less than 5 mins Q8.

5 mins to 10 mins

10 mins or more

Have you ever been cheated or your ATM has been misused without Your permission Yes No

Q9.

Did you complaint for the fraud and any action taken by Bank Authority Yes No

Q10.

What are the additional services provided by your bank at ATM Centres? (Tick one or more) a) Cash Deposit d) Phone bank b) Cheque Deposit e) Other (specify)_____________ c) Bill Payments

Q11.

How much satisfied are you with your ATM service? Highly Satisfied Less satisfied Very satisfied Not Satisfied Satisfied-

Q12.

How much secured do you feel to use ATM card? Highly secured Less secured Very secured Not secured Secured -

Q13.

Are you satisfied with the number of ATM centres provided by the bank? Highly Satisfied Less satisfied Very satisfied Not Satisfied Satisfied-

Q14.

Are you satisfied with the locations of ATM centres provided by your bank? Highly Satisfied Less satisfied Very satisfied Not Satisfied Satisfied-

Q15. Do the ATM centres provide the denominations of currency you require? a) Always Q16. b) sometimes c) never

Do they run out of cash frequently? a)Always b) sometimes c)never

Q17.

What according to you are the shortcomings of your bank ATM centre?

76

SILB, Solan

__________________________________________________________ Q.18. What extra facilities do you expect from an ATM centre? Please specify____________________________________

Thank You

77