A STUDY ON CUSTOMER New

A STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS CASH DEPOSITING MACHINE IN KOLLAM
A STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS

CASH DEPOSITING MACHINE IN KOLLAM
Abstract:This paper shows a study on customers attitude and usage in using cash deposit
machines at Kollam Disrrict. Banking sector plays an active role in the economic development of
a country. The new technologies help the banks to reduce the work load. The green channel
counters help the customers to have convenient and comfortable banking transactions The study
has been formulated based on the following objectives.
To identify the factors that influences the customers satisfaction of green channel
counter
To identify the factors leading to Green Channel Counter
To offer suggestion to satisfy and retain the customers.
TKM INSTITUTE OF MANAGEMENT
Page 1
INTRODUCTION
Banking sector plays an active role in the economic development of a country. Their ability to
make a positive contribution in igniting the process of growth depends to a great extent on the
way the banking policies are pursued and the banking structure is evolved. It is, therefore, no
exaggeration to say that an effective, efficient and disciplined banking system greatly helps the
growth of economic development. It functions as a catalytic agent in bringing about economical,
industrial and agricultural growth and prosperity of the country.In kerala ,the cash deposit
machine was first indroduced by SBI at the Kanhangad branch on march 2014..
Banking in India in the modern sense originated in the last decades of the 18th century. Among
the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in
1829-32; and the General Bank of India, established 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India. It originated as
the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one
of the three banks funded by a presidency government, the other two were the Bank of
Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial
Bank of India, which upon India's independence, became the State Bank of India in 1955. For
many years the presidency banks had acted as quasi-central banks, as did their successors, until
the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.
In 1960, the State Banks of India was given control of eight state-associated banks under the
State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In
1969 the Indian government nationalised 14 major private banks. In 1980, 6 more private banks
were nationalized. These nationalised banks are the majority of lenders in the Indian economy.
They dominate the banking sector because of their large size and widespread networks.
The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks.
The scheduled banks are those which are included under the 2nd Schedule of the Reserve Bank
of India Act, 1934. The scheduled banks are further classified into: nationalised banks; State
Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian
Page 2
private sector banks.[6] The term commercial banks refers to both scheduled and non-scheduled
commercial banks which are regulated under the Banking Regulation Act, 1949.
Banking was one of the more preferred lines of business in Kerala - as well as in the princel
states of Travancore and Cochin and the Malabar Province of British India that originally
comprised it - in the twentieth century. A list of some of the Banks that operated in that territory
during that period are given below. Due to various reasons most of them were either closed or
amalgamated with other banks, leaving only a handful now.
The Kerala bank sector operates three types of banks

Nationalized banks: The list of nationalized banks includes the State Bank Group, Bank of
India, Central Bank, Canara Bank and Corporation Bank.
Private banks: Major private players in the Kerala bank industry are ICICI bank, HDFC, Axis
bank and The Karur Vysya Bank.
Foreign banks: Several foreign-based banks also play key role in Kerala, such as Citibank,
HSBC and ABM AMRO
Trends in services offered by banks

Traditionally, retail banks have used branches, ATM, call centers, mobile, and Internet to interact
with their customers, though newer direct channels such as social media have emerged recently.
Branches have always played an important role and remain a key banking channel. However the
changing needs and preferences of customers, coupled with growing technological innovations,
has led to the increased popularity and adoption of direct channels over the last decade. Because
of their growing popularity, direct channels are expected to hold the highest share of global
banking transaction volume by 2012, though traditional channels are still expected to command
the highest share of the sales volume1 . As branch networks typically constitute around 75% of a
banks total distribution costs, the key challenge banks face today is to justify the high branch-
Page 3
operating costs at a time of lower branch-driven revenue growth. The current economic scenario
gives banks an opportunity to identify channels that are most important to their customers, and
provide a positive experience across them. Banks are shifting their customers from high-cost to
lower-cost channels, thus reducing their total cost-to-serve. There is a growing trend to achieve a
seamless multi-channel integration by banks who want to make their customer interactions
channel-agnostic. This will help banks leverage their distribution networks by offering the right
products to the right customer segment through a desired channel, resulting in overall cost
savings and an enhanced customer experience. Banks also face highly saturated markets where
product and price no longer remain the key differentiators, thus pushing up retention costs.
Innovations around better and faster delivery of the right products to a customer will help banks
provide a differentiated customer experience, thus supporting better customer retention. Global
IT spending on retail banking channels remained stagnant in 2009, but is expected to grow to
$45.8bn at a compound annual growth rate of 4.2% through 20122 . Key trends are emerging
which are expected to drive future growth and transform the key customer touch points for
delivering better and more costeffective client service. Banks globally are investing in enterprise
mobile financial service solutions to deliver more mobile-based banking services and reduce the
overall cost of operations. As the adoption rate of online banking continues to increase globally,
banks are expected to increase their online marketing presence by leveraging technologies such
as Web 2.0 and social networks, which have evolved as an integral part of the banking channel
mix. Banks are also increasingly spending on customer-centric analytical tools to better
understand client buying and channelusage patterns, which can help build and improve customer
relationships.
Customer attitude towards banking services in India

Liberalisation trends in the emerging economies have led the banking sector devise
marketing strategies to accommodate the changing needs of their customers (Krishnan
et al., 1999). The Indian industry has witnessed sweeping reforms in the banking and
financial sector in the last decade. The first banks in India were established by the British
East India Company in the first half of the 19th century the Bank of Bengal in 1809, the
Bank of Bombay in 1840 and the Bank of Madras in 1843. Later, these banks were
Page 4
amalgamated to a new bank called Imperial Bank which was renamed as the State Bank
of India in 1955. In 1969, 14 major banks were nationalised and in 1980, six major
private sector banks were taken over by the government (Indiaonline, 2009). In recent
years, the Central Bank of India (RBI) initiated a number of liberalisation measures to
encourage commercial banks to move towards market driven system (Kumbhakar and
Sarkar, 2003). The banking sector reforms have focused on customer-satisfaction,
asset-liability management, investments, training of human resource and use of
technology to make banking convenient (Bedi, 2010). These reforms had a positive
impact on the banking sector. The highly regulated market pre-deregulation had stifled
the growth of the public sector banks, and they had become inefficient and were losing
productivity (Kumar and Gulati, 2009). The earlier banking system crippled the
operations of banking sector and made it incompetent (Mohan, 2007). Kumar and Gulati
(2009) state: In order to impart more vitality and autonomy to banks in their operations,
the policy makers successfully adopted the route of partial privatisation of public sector
banks, interest rate deregulation, relaxing entry norms for domestic private and foreign
banks, and removal of financial repression through reduction in statutory
pre-emptions. There have been consistent efforts by the government to improve the
banking structure and allow more autonomy to the public sector banks (Roland, 2008).
Liberalisation policies pursued by the government have made it easy for multinational
banks to make investments into Indian banking industry. The multinational banks with
their advanced technologies and superior service portfolios have revolutionarised the
banking services. The Indian banks with their inefficient services are faced with the
challenge to improve their facilities. Indian Banking Sector Forecast (2009) posits that
the Indian banking industry is well poised as compared to their banking industries in the
western countries which have been affected by the financial crisis. The strong economic
growth, low defaulter ratio, absence of complex financial products, regular intervention
by central bank and, proactive adjustment of monetary policy provided the right mix for
investments in Indian banking sector. The multinational banks are eyeing the Indian
banking sector as it promises steady growth and opportunity to serve Indian customers
with better product/service portfolios. The predominant factors which have been
responsible for steady growth are strong economic cycle. The foreign and private banks
Page 5
have grown at 50%, while public sector banks have improved their growth rate to 15%.
The share of the private sector banks has increased by 35% and that of foreign banks
increased to 20% of total sector assets (McKinsey, 2010).
Increasing competition and variety in banking services have acted as a catalyst for the
growing inclination of Indian customers towards multinational banks (Moodys Banking
Sector Report, 2008; Business Wire, 2009). The key focus of banking sector reforms was
on technology upgradation and improvement of human resource (Bhaumik and
Mukherjee, 2001). The competition presented by private and multinational banks forced
the public sector banks to adopt aggressive strategies, increase their presence in rural
India and expand their customer base (Sureshchandar et al., 2003; Reddy, 2007; Bedi,
2010). They are focusing on innovative marketing strategies like cross selling, packaged
selling of retail products, and technology based banking (Business Wire, 2009;
McKinsey, 2010).
Banks that provide good quality service to their customers definitely would be able to
increase their profits and revenues by being paid in terms of customer retention (Bennett
and Higgins, 1988) and loyalty. The difference in the perception of the customer related
to the quality of the services provided by different banks is dependent upon customers
perceptual construct and their earlier experiences with the banks. To be able to serve
customers, it becomes imperative for banks to combine promptness with convenience,
and mixing technology with human element. The research adapted the SERVQUAL scale
to understand the customers perceptions and attitude regarding service quality of
multinational banks in India. The results would enable multinational banks to define their
strategies for capturing Indian market according to customers perspective.
Green Channel Counter

The Green Channel Counter is functioning in most of the banks in India. The Customer has to
swipe their ATM card for withdrawal or has to deposit the money in the counter. The customer
has to select the transaction type and enter their pin number to complete the transaction within
time. The information will be displayed to the counter clerk who in turn would issue a slip to the
customer after completion of the transaction. This new system would enable the customer to
Page 6
complete the transactions without paper work. Each customer would be allowed to either deposit
or withdraw amount up to Rs.40, 000 per transaction.
Cash Deposit Machine

It is a 24*7 self-service banking terminal, which accepts cash deposits using ATM. Customers
account will be instantly credited with the cash deposited. A receipt will be issued to you for each
successful deposit. Deposit service is available 24 hours a day, 7 days a week. For the
convenience of the customers, the customers can deposit cash without the need for a card or
passbook. They can simply touch the screen and follow the step by step guide. This machine
accepts cash deposits only and does not dispense cash. Only Indian currency is accepted. The
accepted denominations are 5rs, 10rs, 20rs, 50rs, 100rs, 500rs and 1000rs. The fake currencies
are also detected. Rs 49999 are the cash limit that can be withdrawn at a time. It is set so to avoid
income tax issues. The bundle of notes can comprise of mixed denominations place in any order.
The respective account is credited immediately after detecting the fake currencies. One possible
reason could be your notes are crumpled, soiled, defaced or folded. Please ensure that your notes
are properly straightened i.e. without folds, dogged-ears etc before depositing.
Page 7
LITERATURE REVIEW
Walfried,
(2000) defined service as a set of characteristics that meet the clients' needs,
strengthen the links between the organization and them, and enhance the clients' value as well
As per Section 5(b) of the Banking Regulation Act, 1949 , "banking" means the accepting, for
the purpose of lending or investment, of deposits of money from the public, repayable on
demand or otherwise, and withdraw able by cheque, draft, order or otherwise.
Kolter and Armstrong (1999) defended the customer satisfaction as the customer's. Perception
that compare their pre-purchase expectations with post purchase
perception
Dr. Arvind A. Dhond (2013) conducted study tiled An empirical study on Green Channel
Counter in Banks. The researcher identified some problem faced by the customers and banks,
he given solution that the green channel counter helps to solve the problems. The objectives are
to provide insight into Green Banking initiative of State Bank of India by introducing Green
Channel Counter, to determine the level of awareness about Green Banking and Green Channel
Counter among the public in general SBI customers and to draw conclusions based on the
primary data survey results. He concludes that the future banks will be customer friendly
banking approach and the customers will welcome these types of green innovations in banking
sector. There was no study conducted in SBI Green Channel Counter except the above study.
Based on the above study and related publications the researcher designed the following
objectives.
Frascati Manual defiant Technological innovations comprise new products and processes and
significant technological changes of products and processes. An innovation has been
implemented if it has been introduced on the market (product innovation
Page 8
Kasper et al state: Quality is an ambiguous term. On the one hand, everyone knows (or thinks
they know) what quality is. On the other hand, formulating a comprehensive and uniform
definition is a big if not insurmountable problem
Scheduled Bank is defined by Section 5(1) (m) of the Banking Companies Act, 1949 as a bank
for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934
Nonscheduled bank in India means a banking company as defined in clause (c) of section 5 of
the Banking Regulation Act,1949 (10 of 1949), which is not a scheduled bank"
Dhiraj Vasant Kapare ,etc) conducted study tiled - Automatic Cash Deposite Machine With
Currency Detection Using Fluorescent And UV Light(2013),Department of E&TC Engineering
Imperial College of engineering, Pune, India Cash Deposit Machines (CDM) has altered the
relationship between banks and their depositors, as well as the competitive relationships among
banks. In this paper, I survey the literature to describe the ways have influenced these aspects of
banking markets. The project is designed to provide fully automatic cash deposit machine. It is
combination of Embedded, DIP & Automation. In Mat lab every data image of note is compared
with ideal stored image of every appropriate type of note. Every note is passed through UV light
to detect the originality of note which consequently results in acceptance and rejection of faulty
notes.
Arpita Khare(2011) ) conducted study tiled Customers perception and attitude towards service
quality in multinational banks in India
STATEMENT OF THE PROBLEM
A Study on Attitude and usage of customers towards Cash Depositing machine at Kollam
District.
Page 9
OBJECTIVES OF THE STUDY

To find out the attitude of customers towards Cash Depositing Machine
To find out customers satisfaction towards Cash Depositing Machine
To know the factors influencing the use of CDM
To find out the problems usually faced by the customers while using CDM in a bank
Methodology and Tools used

The study is based on primary data. Structured questionnaire was used to collect data from
300 customers those who are using Green Channel Counter in various banks in Kollam.
Convenient sampling method was used to collect the data from the respondents.conclusive
case study method is used. Likert point scale technique was used to measure the customers
satisfaction. The factors influence Customer satisfaction were identified and mean score were
calculated to find out the factor which highly influence the satisfaction.
Convenience sampling
Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.The subjects are
selected just because they are easiest to recruit for the study and the researcher did not consider
selecting subjects that are representative of the entire population.In all forms of research, it
would be ideal to test the entire population, but in most cases, the population is just too large that
it is impossible to include every individual. This is the reason why most researchers rely on
Page 10
sampling techniques like convenience sampling, the most common of all sampling techniques.
Many researchers prefer this sampling technique because it is fast, inexpensive, easy and
the subjects are readily available.
DATA ANALYSIS AND FINDINGS
The objective of the study is to identify and analyse the Customer satisfaction in Cash
Deposit Machine services in Kollam,the impact of technology on banking operations and
comparative analysis between Public and Private sector banks.
Survey isconducted by Chandu sajeevan,Akshay.P,Amalesh Chandran.S,Safar Ali
S2(TKM institute of management,Kollam) under the guidance of Dr.Santhosh V.A (Associate
Professor TKM Institute of management,kerala university). Please be assured that your responses
will be strictly confidential. Please put a ( ) mark to indicate your preference
Page 11
STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS CASH

DEPOSITING MACHINE IN KOLLAM
Gender
Age
Education
Occupation
Income
Male
Female
Below 20
20-30
Above 40
Under Graduate
Graduate
Post-Graduate
Others
Business
Profession
Govt. Sector Employee
Pvt. Sector Employee
Others
Less than 50,000
50,000 1,00,000
1,00,000 2,00000
More than 2,00,000
No. of Respondents
32
28
11
30
9
11
17
9
3
16
6
5
9
4
45
3
1
1
Page 12
Total
50
50
50
50
50
FINDINGS
1. Gender
Male
Female
2. Age
Page 13
18 - 25
26 - 30
31 40
41 50
51 60
Above 60
3.Educational Qualification
Under Graduate
Graduate
Post-Graduate
Others
Page 14
4.Marital Status
Married
Un married
5.Profession
Govt Employee
Private Employee
Business
Self Employee
Student
House Wife
Page 15
6.Monthly Income
Upto 10,000
10,000- 15,000
15,001-20,000
20,001-25,000
25,001-30,000
Above 30,000
7.Status of usage
Less than 1 year

1 5 years
5 10 years
10 15 yeas
Above 15 years
Page 16
8. Do you know about CDM(cash deposit machine) ?

50
45
40
35
30
25
20
15
10
5
0
Yes
No
9.Is it easy to use?

40
35
30
25
20
15
10
5
0
Yes
No
Page 17
10.Are you able to deposit cash with CDM(cash deposit machine) ?
35
30
25
20
15
10
5
0
Less than 5 minutes
5-10 minutes
More than 10 minutes
11.Are you satisfied with the speed ?

45
40
35
30
25
20
15
10
5
0
Yes
No
Page 18
12.Do you want the menu in your language ?

45
40
35
30
25
20
15
10
5
0
Yes
No
13.How much time it will take to reflect in your account

after depositing in CDM(is it real time)
Page 19
60
50
40
30
20
10
0
Less than 5 minutes
5-10 minutes
More than 10 minutes
14.Is good notes you are putting in get rejected ?
45
40
35
30
25
20
15
10
5
0
Yes
No
15.Does the machine identifies counter feet notes?

Page 20
50
45
40
35
30
25
20
15
10
5
0
Yes
No
16.Does your note get stucks in the machine often?
60
50
40
30
20
10
0
Yes
No
Page 21
17.Do You want to associate ATM with the CDM ?
45
40
35
30
25
20
15
10
5
0
Yes
No
18.Do you think it is reliable to send money for emergency proposes?
60
50
40
30
20
10
0
Yes
No
Page 22
19.Which category of the banks do you consider as most

technologically advanced?
40
35
30
25
20
15
10
5
0
Public sector bank
Private sector bank
20.How familiar are you with computer usage level of your

bank?
Ex
pe
rt
kn
ow
le
dg
e
Av
er
ag
e
kn
ow
le
dg
e
of
co
m
pu
te
r
18
16
14
12
10
8
6
4
2
0
Page 23
21.Which factor promotes you to use the new cash deposit

machine?
20
15
10
5
0
1
22.Which attribute of the bank do you value the most?
ba
nk
of
th
e
Ty
pe
Lo
ca
tio
n
Tr
us
t
us
ed
Te
ch
no
lo
gy
Q
ua
lit
y
of
S
er
vi
ce
35
30
25
20
15
10
5
0
Page 24
23. How satisfied are you with Working through green

channels?
35
30
25
20
15
10
5
at
is
fe
d
H
ig
hl
y
D
is
s
fe
d
eu
tr
al
N
D
is
sa
tis
H
ig
hl
y
Sa
tis
fe
d
Sa
tis
fe
d
24.How much money do you usually deposit?

16
14
12
10
8
6
4
2
10
,0
00
-1
5,
00
0
15
,0
01
-2
0,
00
0
20
,0
01
-2
5,
00
0
25
,0
01
-3
0,
00
0
30
,0
01
35
,0
00
pt
o
10
,0
00
Page 25
25. How frequently do you use the following banking

services per month?
18
16
14
12
10
8
6
4
2
0
Nil
1 to 3
3 to 8
8 to 12
Over 12
Page 26
CONCLUSION AND SUGGESTIONS
Majority of the respondents in the banks satisfied with the cash depositing machine. Hence it is
suggested the banks to developed and improvise the proper mechanism to resolve the grievance
settlement, as it leads to customer comfort and satisfaction. Comfort and convenience is very
important in any business.Majority of the customers are dissatisfied with the sufficient number of
CDMs. Complaint book is most important at the CDMs, it is found respondents stated that no
compliant book is available at ATM counter hence, it is suggested the banks to put the complaint
book in ATM counter, then the customers utilize and make the complaint and also suggestions to
the banks for effective functioning. The most important issue the bank administration should
concentrate on proper mechanism on Grievances settlement; besides that, customers data is
increasing day by day correspondingly the number of CDMs should be increased, so it leads to
customers satisfaction.
REFERENCES
Page 27
1. Bishnoi Sunita (2013), An Empirical Study of Customers' Perception Regarding Automated

Teller Machine in Delhi and NCR, Integral Review- A Journal of Management, Vol.6 No.1 pp
47- 60
2. Chattopadhyay P. and Saralelimath S. (2012) customer preferences towards use of CDM
services in pune city, international journal of marketing, financial services and management
research, Vol.1, issue-7, July 2012 (ISSN: 2277 3622)
3. Kumbhar Vijay M (2011), Customer satisfaction in CDM service: an empirical evidences
from public and private sector banks in India, Management research practice, Vol. 3, issue-2, pp
24-35.
4. Kaur Manpreet (2013), Customer Satisfaction in CDM Service: An Empirical Study of Banks
in Chandigarh International Journal of Research in Commerce & Management, Vol. 4, No. 6.
5. Kumar Jayant, E-Banking: Some Economic Implications, The ICFAI University, Vol. 10,
Issue 1, pp. 42-43
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A STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS CASH DEPOSITING MACHINE IN KOLLAM

A STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS

TKM INSTITUTE OF MANAGEMENT

TKM INSTITUTE OF MANAGEMENT

The Kerala bank sector operates three types of banks

Trends in services offered by banks

TKM INSTITUTE OF MANAGEMENT

Customer attitude towards banking services in India

Green Channel Counter

Cash Deposit Machine

TKM INSTITUTE OF MANAGEMENT

TKM INSTITUTE OF MANAGEMENT

TKM INSTITUTE OF MANAGEMENT

OBJECTIVES OF THE STUDY

Methodology and Tools used

Convenience sampling is a non-probability sampling technique where subjects are selected

DATA ANALYSIS AND FINDINGS

TKM INSTITUTE OF MANAGEMENT

STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS CASH

TKM INSTITUTE OF MANAGEMENT

TKM INSTITUTE OF MANAGEMENT

TKM INSTITUTE OF MANAGEMENT

TKM INSTITUTE OF MANAGEMENT

Less than 1 year

TKM INSTITUTE OF MANAGEMENT

8. Do you know about CDM(cash deposit machine) ?

9.Is it easy to use?

TKM INSTITUTE OF MANAGEMENT

10.Are you able to deposit cash with CDM(cash deposit machine) ?

More than 10 minutes

11.Are you satisfied with the speed ?

TKM INSTITUTE OF MANAGEMENT

12.Do you want the menu in your language ?

13.How much time it will take to reflect in your account

TKM INSTITUTE OF MANAGEMENT

More than 10 minutes

14.Is good notes you are putting in get rejected ?

15.Does the machine identifies counter feet notes?

16.Does your note get stucks in the machine often?

TKM INSTITUTE OF MANAGEMENT

17.Do You want to associate ATM with the CDM ?

18.Do you think it is reliable to send money for emergency proposes?

TKM INSTITUTE OF MANAGEMENT

19.Which category of the banks do you consider as most

Private sector bank

20.How familiar are you with computer usage level of your

TKM INSTITUTE OF MANAGEMENT

21.Which factor promotes you to use the new cash deposit

22.Which attribute of the bank do you value the most?

TKM INSTITUTE OF MANAGEMENT

23. How satisfied are you with Working through green

24.How much money do you usually deposit?

TKM INSTITUTE OF MANAGEMENT

25. How frequently do you use the following banking

TKM INSTITUTE OF MANAGEMENT

CONCLUSION AND SUGGESTIONS

TKM INSTITUTE OF MANAGEMENT

1. Bishnoi Sunita (2013), An Empirical Study of Customers' Perception Regarding Automated

TKM INSTITUTE OF MANAGEMENT

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