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ATMs (Automated Teller Machine)

An Automated Teller Machine (ATM) is also known as Automated Banking


Machine (ABM), Cash Machine, Cash Dispenser, Cash Point or Hole in the
Wall. ATMs are introduced in the early 1990s to replace tellers and to
reduce transaction costs of banks. It is an electronic device which enables
the clients of a financial institution to make financial transactions without
the assistance of a cashier or clerk. The customer is identified by the
machine when an ATM Card or Smart Card is inserted and on entering the
PIN, the machine will be ready for the services like withdrawals, deposits
etc. It helps reduce the paper work to a great extent and thereby reduces
the transaction costs of the bank. Now-a-days, ATMs provide most of the
banking services like updating and printing bank statements, purchasing
movie tickets and train tickets etc., donations for charity, fund transfer
etc. ATMs pose security issues like usage of fake cards, PIN hacking,
attacking customers in the ATM etc. which are not resolved completely.
Internet Banking
With the advent of internet, internet banking started in the country during
the early 2000. Internet Banking also called E-Banking or Online Banking
which allows customers to conduct financial transactions through a
secured website operated by the bank. A customer having internet access
should register with the bank for online services and bank will provide him
with a user name and password which can be used for entering into the
banks website for online banking. Through online banking, a customer
can make financial transactions as well as non- transactional activities like
requesting cheque books and Demand Drafts, viewing account balances,
downloading applications for various banking services etc. Normally all net
banking services should be denominated in local currency, that is Indian
Rupee but now foreign exchange services are also offered subject to the
rules and regulations prevailing in the country. Most of the banks have set
up top security measures to prevent and reduce unauthorized online
access of customers records.
Phone Banking
Phone Banking and Mobile Banking are the recent contributions of
technology banking. It is a service provided by a financial institution or
bank to its customers to perform financial transactions without physically
visiting the bank. The customers can make use of this service on a 24
hours basis.
Phone Banking functions through an Interactive Voice
Response System (IVRS) or telebanking executives of the bank. One has
to register his phone number with the bank and the bank will provide a
password to access this facility. The services available through this
service include balance enquiry, bill payments, fund transfers, ticket

reservation etc. but cash withdrawal is not possible for which the
customer need to visit the bank or an ATM.