ATM FACILITY IN INDIA

A project submitted to University of Mumbai for partial completion of the

degree of Bachelor in commerce (Accounting and finance) Under the faculty of
commerce

By

ANJALI CHAUDHARI

Under the guidance of

KISHOR CHAUHAN

JANN VIKASH MANDAL’S MOHANLAL RAICHAND COLLEGE OF MEHTA

DIWALI MAA COLLEGE OF SCINCE AMRITLAL RAICHAN MEHTA COLLEGE
OF ARTS DR. R.T. DOSHI COLLEGE OF COMPUTER SCIENCE. PLOT NO 9,
SECTOR 19, NAVI MUMBAI 400708.

MARCH 2020
 DECLARATION BY LEARNER

I the undersigned Miss. ANJALI CHAUDHARI here by, declare that the work embodies in
this project work titled “ATM FACILITY IN INDIA ”, forms my own contribution to the
research work carried out under the guidance of Kishor Chauhan is a result of my own
research work and has not been previously submitted to any other University for any other
Degree/Diploma to this or any other University.

Wherever reference has been made to previous work of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and signature of the learner

Certified by

Name and signature of the Guiding Teacher

 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledgment the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my principal, Dr. (Mrs.) Leena Sarkar for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator Kishor Chauhan for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide Kishor Chauhan
whose guidance and care made the project successful.

I would also like to express my College Library, for having provided various reference
books and magazine related my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me
throughout my project.
 Index
SR.NO. PARTICULAR PAGE
NO.
Chapter1 Design of project
1.1 Objective of project
1.2 Methodology

Chapter 2 Introduction to project

2.1 Introduction
2.2 History of ATM
2.3 Invention of ATM
2.4 Introduction to ATM card
2.5 Types of ATM card
2.6 Benefits of ATM card
2.7 Working of an ATM
2.8 Parts of ATM
2.9 How to use an ATM
2.10 Uses of ATM
2.11 Consideration using ATM
2.12 Location of ATM’s
2.13 Fraud prevention for consumer
2.14 Advantages &disadvantages
2.15 ATM card v/s Debit card
2.16 Scope of ATM in India
2.17 ATM card v/s Credit card
2.18 Major ATM issues
2.19 Hardware and software
2.20 Physical security
2.21 Functioning of ATM’s
2.22 Models of automated teller machines
2.23 Credit card v/s Debit card
2.24 Customer and technology
2.25 Application of credit card
2.26 ATM v/s Teller
2.27 New ATM cash withdrawal rules
2.28 How to apply for new ATM cum Debit card
online
2.29 ATM and debit card guide
2.30 ATM monitoring
2.31 Feature of ATM
2.32 ATM services
2.33 Indian first bio ATM from axis bank
2.34 9 useful services provided by ATM
2.35 Frequency of ATM in India
2.36 Numbers of ATM in Indian reduces
2.37 New development of ATM’s
2.38 Precaution to be taken
2.39 Ration of ATM in India
2.40 ATM transaction charges in India
2.41 The ATM market in india

Chpter3 conclusion
3.1 conclusion

Chapter4 Anexture
4.1 questionnaire
4.2 biblography
DESIGN OF
PROJECT

1
 OBJECTIVE OF PROJECT

 To make observation about the concepts & functions of Automated Teller Machine.
 To analyses & discuss the strategic issues present in Automated Teller Machine.
 To understand the nature & structure of Automated Teller Machine.
 To link theoretical knowledge with real life.
 Scope of the study
 The contemporary study of Automated Teller Machine in this project based on the sample
of the different sectors of the banks.
 HDFC Bank.
 IDBI Bank.
 These sample banks have been selected at random. Rather keeping the consideration of
mouth publicity factor by the customer orientation repute has made the choice

METHODOLOGY
 The completion of the project involved acute scanning of the library and different text
books. A lot of information has also gathered from the web.

 A visit to HDFC Bank and IDBI Bank also made to gather information pertaining to the
project.

 The information collected has been diluted and presented in very simple and lucid
manner, which will help the reader to understand the topic.

2
INTRODUCTION
TO PROJECT

3
 INTRODUCTION

Viewed from a purely technical perspective, an ATM is simply a safe with an electro-
mechanical input and output system which is itself controlled by a fully electronic user
interface.
Organization that manufacture ATMs –include Fujitsu, IBM NCR and Siemens-Nixdorf –
expended great effort on the user interface itself; taking into considerable care to maximize
the speed of the entire customer interaction and keeping the language the used for the
interaction process a clear and straightforward as feasible. Most ATMs nowadays use a
cathode-ray tube (CRT) for the visual interface, although some ATMs of an older design
make use of a system where by the different interface pages are scrolled mechanically behind
a glass screen. Incidentally, one reason why colors ATM screens have not taken off is
because no one has yet developed a reliable color screens which is easily visible in exterior
daylight.
It is important that a ATMs user interface should not only be easy to use and clearly
understandable but should be designed so as to minimize the likelihood of the customer
leaving without taking from the machine all the things he needs to take. These are the cash,
paper receipt and above all, the card. There is no doubt that the card is the most likely items
to be forgotten by a customer, who sees the purpose of the interactive process being to obtain
cash. Consequently, ATMs usually have some kind of sound alarm, which only ceases when
the customer has removed his card from the slot. Some machines also provide visual message
to remind the customer to retrieve the card, especially if the functions is one where the
customer is not going to lingering by the machine until the cash has been dispensed.
In order to prevent security problem if the customer nevertheless forgets to retrieve the card,
the machine will “swallow” the card after a short period normally about 30 seconds. The
customer will then usually need to apply centrally to get the card returned, although if ATM
is situated in the lobby or through the wall of a branch where he is known, he can sometimes
get the card back from the ATM by asking for the branch to extract it.
The machines currently in use allow user to draw any sum of up to a limited account, view
the current position of their accounts and order a new chequebook. To obtain money from the
unit the customer need special ATM card and is notified of personal identification number,
which is not shown on the face of the card. The card must to be inserted into machine and the
personal number typed in.

4
 HISTORY OF ATM

ATM can be traced back to the 1960s, when the first ATM machine was invented by
Scot John Shepherd-Barron and used by Barclays Bank in 1967. However, while Shepherd-
Barron has the major claim to fame, there have been many other individuals who have also
invented some version of the ATM. The machine itself has evolved over the years, with the
earlier versions restricted to only one or few banking functions. There has been much debate,
however, on who invented the first early versions of Automated Teller Machine. But the
history of ATM can be visibly traced back to the year of 1967.

In 1939, a rudimentary cash dispenser was invented by Luther George Simijian and
established by the City Bank of New York. However, the machine did not work much and
had to be removed within six months of putting up the machine. The early versions of the
ATM were restricted to cash withdrawal only. In the 1967 model, patented by Shepherd-
Barron, the plastic cards did not exist and instead a voucher with a strip of radioactive
substance was used for withdrawing cash. Consequently, the vouchers were matched with a
particular personal pin code used by the bank to identify the customer. The ATM was
inaugurated by renowned British actor, Reg Varney. The personal identification number was
initially a six numbered password, and was later changed to a four numbered password.
However, this automated teller machine was very different from the modern day teller
machines, which is based on an electronic system between the different branches of the bank.
Thus, the history of ATM has seen many changes over the span of 25 years since 1939.

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

5
 INVENTION OF ATM

Many people have claimed to be the inventor of the ATM. Some believe that Luther George
Simjian did it. Some believe that it was Don Wetzel. Still others say the inventor is John
Shepherd-Barron. John D. White has contacted ATMmachine.com and gave very convincing
evidence that he is the inventor of ATM and not Don Wetzel. James Goodfellow of Scotland
also contacted ATMmachine.com and gave us convincing evidence of inventing ATM. Since
the patent on an ATM as we know it was never applied until years after Simjian, confusion
on inventor till exists. One reason for confusion is that John Shepherd-Barron lived in the
United kingdom, James Goodfellow in Scotland, while others lived in USA. We present all
the evidence, as we know it on this page.

THE ATM’s INVESTOR & FACTS:-

Luther George Simjian:

In the late 1930's, Luther George Simjian started building an earlier and not-so-successful
version of an ATM, but he did register related patents. He initially came up with the idea of
creating a hole-in-the-wall machine that would allow customers to make financial
transactions; the idea was met with a great deal of doubt. Starting in 1939, Simjian registered
20 patents related to the device and persuaded what is now Citicorp to give it a trial. After six
months, the bank reported that there was little demand. Today, as you know, there is a huge
demand!

John Shepherd-Barron:

John Shepherd-Barron had an idea in the 1960's for a 24/7 cash dispenser.

At the time, he was managing director of De La Rue Instruments. De La Rue today

manufactures cash dispensers. In fact, there is a De La Rue cash dispenser in 1 out of every 5
ATM machines built. If you want to believe that Shepherd-Barron invented the ATM, then
the world's first ATM was installed outside a north London branch of Barclays Bank in 1967.
Later In 1967, Shepherd-Barron presented his idea to a conference of 2,000 US bankers in
Miami, after the first ATMs had been installed in England. He spoke to the conference about
the new self-service banking device he developed. On December 31, 2004, John Shepherd-
Barron, was named an Officer of the Order of the British Empire, or OBE, by the Queen of

6
England for services to banking. "It was a bit late, but better late than never," said Shepherd-
Barron. Press releases stated that Shepherd-Barron was the "Inventor of the ATM." But, was
he?

James Goodfellow :

As a Development engineer with Smiths Industries Ltd, James Goodfellow was given the
project of developing an automatic cash dispenser in 1965. Chubb Lock & Safe Co. were to
provide the secure physical housing and the mechanical dispenser mechanism. Eventually
Mr. Goodfellow designed a system which accepted a machine readable encrypted card, to
which he added a numerical keypad. UK Patent No.1,197,183 with a priority date of May 2
1966, covers this invention, and it is also covered by US Patent No.3,905,461 and Patents
granted by many other countries. These Patents list James Goodfellow as inventor, along with
the late A.I.O.Davies, the company General Manager. This US Patent still describes the basic
ATM function almost 40 years later. These

Machines were marketed by Chubb LTD and installed nationwide in the UK during the late
60s and early 70s. You can read ATM inventor JamesGoodfellow's story here on
ATMmachine.com.

Don Wetzel:

In 1968, according to a NMAH interview, Don Wetzel, says he was the Vice President of
Product Planning at Docutel, the company that developed automated baggage-handling
equipment. He applied for a patent on an ATM machine. He said there were two other
inventors listed on the patent. They were Tom Barnes, a mechanical engineer and George
Chastain, an electrical engineer. It took five million dollars to develop their ATM according
to Mr. Wetzel. If you want to believe that Wetzel and company invented the ATM, then you
might want to read the next paragraph.

7
John D. White:

John D. White told ATMmachine.com that his work started in 1968. He told us that he
installed the first ATM at Rockville Center, LI for the then Chemical Bank in August 1973.
His design was patented on May 9, 1973 for the Docutel Corporation and was filed on July
29, 1970. The machine was called a "Credit Card Automatic Currency Dispenser". Mr. White
provided copies of his patent to ATMmachine.com for our review. Indeed it states the
inventor of the machine was John D. White and Kenneth Goldstein, and the assignee on the
patent was the Docutel Corporation. It does seem to us that this is very convincing evidence
that it was White and not Wetzel who received the patent. There is also a statement in the
patent that supports the idea of the modern ATM. "Both the original code and the updated
code are scrambled in accordance with a changing key", which is basically what happens
today. ATMs are programmed with security keys and the code changes and are scrambled to
prevent fraudulent access to credit card and ATM numbers between the machine, the bank,
and the network processor. We would like to thank Mr. White for contacting us. The patent
drawings he gave us look very much like the free standing ATM that is sold on
ATMmachine.com today.

Jairus Larson:

Jairus Larson told ATMmachine.com that although he did not invent the ATM, as far as he is
aware , he did develop the very first 'on-line' ATM (Diebold's "550"). The first ATM's were
all 'off-line' versions (sometimes referred to as 'stand-alone') meaning they did not have any
means to communicate with the bank. Today's ATMs are 'on-line' meaning they
communicate with the bank's computer system. Mr. Larson was kind enough to give us his
account of how this happened in the early 1970's.

8
 INTRODUCTION TO ATM CARD

An ATM card is a payment card or dedicated payment card issued by a financial

institution which enables a customer to access automated teller machines (ATMs). ATM
cards are payment card size and style plastic cards 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 or CVVC (CVV). ATM cards are known by a variety of names such as bank
card, MAC (money access card), client card, key card or cash card, among others. Most
payment cards, such as debit and credit cards can also function as ATM cards, although
ATM-only cards are also available. Charge and proprietary cards cannot be used as ATM
cards. The use of a credit card to withdraw cash at an ATM is treated differently to
a POS transaction, usually attracting interest charges from the date of the cash
withdrawal. Interbank networks allow the use of ATM cards at ATMs of private operators
and financial institutions other than those of the institution that issued the cards.

ATM cards can also be used on improvised ATMs such as "mini ATMs", merchants' card
terminals that deliver ATM features without any cash drawer.[1][2] These terminals can also be
used as cashless scrip ATMs by cashing the receipts they issue at the merchant's point of sale.

9
 TYPES OF ATM CARD

More people use plastic to pay for items than cash. There are many different types of
cards used to make purchases or withdraw money and many people don't think about the
differences. There are significant differences between ATM, debit and credit cards. There are
several different types of cards that fall under the category of an ATM card.

Basic ATM Card :

Your basic ATM card only has a few uses. It can be used at any ATM machine for the
bank that issued it and sometimes at other banks for a fee. You can use your ATM card to
withdraw and deposit money, check your account balance and transfer funds. Some ATM
cards also have a few more uses like paying loans and getting cash advances, however ATM
cards cannot be used to make purchases

Debit ATM Card :

An ATM debit card has all the features of a regular ATM card with the added features
of a debit card. This card can be used to make purchases at any store or online. Typically they
will have a credit card logo on them, although they do not work the same way as credit cards.
Every time and ATM debit card is used; money is taken out of the checking account it is
linked to.

ATM Credit Cards :

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

10
 BENEFITS OF ATM CARD
The benefits of using Bank ATM cards are more than evident.

1. Save time

This is perhaps the single most benefit. Save time in driving down to the branch and
you do not have to waste time waiting in the queue to perform your transactions. The ATM
Card facilities provide you with the option of banking instantly for various transactions
mentioned above.

2. Convenient 24×7 Banking

At the ATM, now you are not bound to do your transactions within banking hours.
There no need to worry about bank holidays or public holidays. It is 24 x 7, 365 days a year
banking facility.

3. Withdraw Cash when overseas

Depending on the type of facility provided by your bank, if you are travelling
overseas, then the card can be used to draw currency of the country you are travelling to,
from the ATM.

Of course, you should check before hand if your bank has given you this facility.

4. Universally Accepted

Whether you are in town or out of town (or in another country), you can forget about
carrying loads of cash with you. Just carry your ATM cum debit card. It is normally accepted
everywhere. However you must check with the restaurant or the hotel if they have a system
of accepting the credit and debit cards. You can almost be sure if there is master card logo on
your debit card. Also you should make double sure by telling your bank that you’re leaving
your station and there should be any interruption in the service.

5. Security features

The use of ATM is restricted only to the person who knows the PIN. Thus if you keep
the PIN confidential then no one but you can use the ATM to do the banking transactions.

11
 Also for safety purposes, you can set daily transaction limits and the ATM receipts
can help you keep track of your transactions and the money withdrawn or transferred. Also
you can change your PIN as an additional security measure.

6. Save your account from being dormant

Often one or the other account goes dormant if you have not done any transaction for
6 months or so. To make it operational again is a hassle. The reason for this is that most of us
are hard pressed for time. Now you can do one small transaction at regular intervals to keep it
active.

7. Helpful Budgeting Tool

With an ATM Debit card you can never go overboard with your money spending. The
debit card ensures that you get to spend only that much money that you have in your bank
account. This means you cannot go into a situation like “credit card debt”. This helps you to
strictly stay within the budget limits, unlike with credit cards.

Other Advantages and Benefits of using Bank ATM Debit Cards

 ATM points are conveniently located at multiple locations. You can go the ATM of
any bank to withdraw cash – provided your ATM card is linked with that bank.
 There is no need to fill out withdrawal and deposit slips – unlike the practice at the
bank branch.
 Even when travelling overseas, you can withdraw cash at ATMs – provided your local
laws permit it.

12
 WORKING OF AN ATM

There are mainly two types of ATM’s which differ according to the way they operate. They
can be called as

 Leased-line ATM
 Dial-up ATM machines

Any ATM machine needs a data terminal with two inputs and four output devices. Of
course, for this to happen there should also be the availability of a host processor. The host
processor is necessary so that the ATM can connect and also communicate with the person
requesting the cash. The Internet Service Provider (ISP) also plays an important role in this
action. They act as the gateway to the intermediate networks and also the bank computer.

A leased-line ATM machine has a 4-wire, point to point dedicated telephone line
which helps in connecting it with the host processor. These types of machines are preferred in
places where the user volume is high. They are considered high end and the operating costs
of this type of a machine is very high.

The dial-up ATM machines only has a normal phone line with a modem and a toll
free number. As these are normal connections their initial installation cost is very less and
their operating costs only become a fraction of that of a leased-line ATM.

The host is mainly owned by the bank. It can also be owned by an ISP. If the host is
owned by the bank only machines that work for that particular bank will be supported.

13
 PARTS OF ATM

As told earlier, there are mainly two input devices and four output devices for an
ATM. The input devices are:

Card Reader – This is a part of the identification of your particular account number. For this
the magnetic stripe on the back of the ATM card is either swiped or pressed on the card
reader so that it captures your account information. To understand the account information of
the user, the data from the card is passed on to the host processor. The host processor thus
uses this data to get the information from the card holder’s bank.

Keypad – After the card is recognized, the machine asks further details like the type of
withdrawal you prefer, your balance enquiry, and your personal identification number (PIN)
and so on. Since each card has a unique PIN number, there is very little chance for someone
else to withdraw money from your account. There are also separate laws to protect the PIN
code while sending it to the host processor. So, the PIN number is mostly sent in encrypted
form.

14
If your pin number is correct the ATM makes the necessary transactions for the required
amount.

For this transaction, there are mainly four outputs. They are:

Speaker -When a particular key is pressed, the speaker provides the feedback as audio.

Display Screen – The questions asked by the ATM machine regarding the transaction and
the input from the user is all displayed on the display screen. Each step of withdrawal is
shown by the display screen. A CRT screen or even an LCD screen is commonly used as an
LCD screen.

Receipt printer – All the details regarding your withdrawal like the date and time and the
amount withdrawn and also the balance amount in the bank is also shown in the receipt. Thus
a paper receipt of the current transaction is obtained by the user.

Cash dispenser – This is the central system of the ATM machine. This is from where the
required money is obtained. From this portion the person can collect the money.

15
Functions of the Cash Dispenser:

As the whole mechanism is regarding the withdrawal of cash, the cash dispenser
should be highly efficient. These are the main functions that are to be carried out by the cash
dispenser.

It is the duty of the cash dispenser to count each bill and give the required amount. If
there are cases where the bills are stuck together they should be rejected and instead new
notes should be taken. If the money is worn, or even folded, they will be moved to another
section called the reject bin. All these actions are carried out by high-precision sensors.

There may be cases where the sensors may go wrong. To know this, the person
responsible for the machine checks the number of rejected notes at a certain interval. If the
numbers of notes are a lot than expected, then it would indicate that either the quality of the
bills is not good or there is a problem with the cash dispenser.

A complete record of each transaction made by a particular ATM machine is recorded

each day and is kept as a journal. This journal is later collected and then printed out at times.
This information regarding the transaction is kept by the authorities for a period of 2 years.
As there may be cases regarding a particular transaction going wrong, the account owner or
also the bank officers have a right to see the transaction. With this printout the account holder
can contact the host processor.

ATM Networking:

When a transaction is made, the details are inputted by the card holder. This information is
passed on to the host processor by the ATM machine. The host processor checks these details
with the authorized bank. If the details are correct, the requested cash by the card holder is
taken with the help of an electronic fund from the customer’s bank account to the host
processor’s account. After this function is carried out, the processor sends an approval code
to the ATM machine so that the cash can be transferred.

16
 HOW TO USE AN ATM

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

Steps involved in Depositing Money:

1. Be alert.

As you approach the ATM, look around for other people. If it is night time, pick an ATM
in a well-lit location. If using a drive-up ATM, pull up close to it so no one can see you
enter your PIN (Personal Identification Number). If you are uncomfortable with the area
or the people around the machine, find a different machine or use the machine some other
time.

2. Fill out a deposit slip, if needed.

Take an envelope and prepare any deposits you will make
ahead of time.

Fill out a deposit slip, if your bank requires one, and

include it in the envelope. Write the amounts of money you
are depositing in the space provided.

17
3. Endorse your check.

To deposit a check, sign the back of the check ( called "endorsing" thecheck) with your
name as it is written on the front. Depending on the rules of your bank, you may also
write "for deposit only" and include your account number, as shown.

Write the amount of each check on a line of the deposit slip. Beside it, write the
"fraction". This number appears on the face of the check, often in the upper right corner
near the check number. It tells your bank where the check came from. Add up the
amounts you are depositing and write the number down where you can see it after you
seal the envelope. Then, seal the envelope.

4. Insert your ATM Card into the machine.

5. Select a language.

Note that this option often only comes up where your card is registered as being from
another country, unless you live in a country or region with languages other than English
are in major use.

6. Enter your PIN (Personal Identification Number), Then press Enter.

7. Select a transaction.

8. Deposit money.

If you want to deposit (put in) money:

Enter the amount you will deposit. Confirm the amount.

Insert the envelope into the deposit slot when the machine opens it. Note that some ATMs
will not allow you to deposit money. In this case, you need to find one at a branch.

18
Steps involved in Withdrawing Money:

1. Insert your ATM Card into the machine

2. Select a language.

3. Enter your PIN (Personal Identification Number), then press Enter.

4. Withdraw money.

If you want to withdraw (take out) money, select or enter the amount to withdraw.

Most machines dispense money in fixed amounts. You may be given a choice between
common amounts or you may be asked to enter a number that is a multiple of 20 (20, 40,
60, 80, etc.).

Take the cash when the door opens. Put it directly into your wallet.

5. Choose whether to do an additional transaction. Select Yes or No.

6. Choose whether you want a receipt, select Yes or No. Take the receipt if
you requested it.
7. Wait while the system processes your transaction(s).

When the machine beeps at you, take your card, cash, and receipt (if applicable). Always
make sure that you have both your cash and your card.

8. Use the receipt to record the transaction in your check register or

passbook

19
 USES OF ATM

Cash Withdrawal and Balance Enquiry:

In spite of a number of innovative services being made available at many ATMs, cash
withdrawal stills remains the most accessed service at ATMs. However, the migration of
routine bank transactions like cash withdrawals and balance enquiries from teller counters to
ATMs significantly raises the potential for savings in employee costs and greater employee
focus on value-added revenue-enhancing activities such as selling other financial products
and advisory services to customers.

Cash /Cheque Deposit :

Again, due to the strong cash culture in India, cash deposits are most likely higher
than in other markets, especially cash deposits made by commercial customers such as retail
shopkeepers and those whose work involves substantial traveling. A high cash withdrawal
rate results in higher ATM servicing costs due to frequent cash replenishment requirements.
Recent developments in ATM technology have made it possible to recycle cash in ATMs.

Currency notes received as cash deposits are counted; soiled notes separated and
deposited cash dispensed to fulfill withdrawal transactions. However, regulatory concerns
relating to identification of counterfeit notes and its depositors need to be addressed first.

ATM with Cheque deposit facility is not picking up in India, like other countries. One
of the reasons is the delay in collection of the cheque deposited in ATMs. Cheque deposited
in ATMs is to be collected and deposited in the designated branch for collection. Another
reason is the introduction of cheque deposit Kiosks by various Banks especially Private
sector ones. These are kept at each some important locations/branches where customers can
deposit there cheques which are collected at intervals which may be difficult in ATMs.

Bill Payments :

Most utilities have inadequate infrastructure for receiving bill payments resulting in
long queues at collection centres. Hence, bill payment at ATMs has achieved noticeable
acceptance by bank customers. Most banks provide this service through bi-lateral

20
arrangements with bill-payment service providers. ATM users register their water, electricity
and telephone utility accounts with banks, check their dues at ATMs, approve bill payments
that are debited to their bank accounts and receive printed receipts for the transactions. This
service has the effect of improving customer satisfaction for both the bank as well as the bill-
payment service providers. Some Banks’ ATMs even accept charitable contributions to
Temples.

Sale of Paper sled Products:

ATMs are ideally suited to sell paper-based products and services such as tickets,
wireless phone recharge cards, financial products, etc. The screen interface allows browsing
and customization, access to bank accounts facilitate payments and printing capabilities
produce the actual product/service. A number of banks including ICICI Bank, SBI and PNB
have ATMs at Mumbai’s local railway stations to dispense season tickets to commuters.
Own-bank customers pay no extra charge while other bank customers pay a fee of Rs. 50 for
this extremely useful service of anytime ticket purchase. Railway season tickets represent a
high-volume massappeal product. As technical standards get established and product/service
sellers become aware of the ATM sales channel, nicheappeal high-margin products like
entertainment tickets will join the fray.

Kiosks:

Information Kiosks has been introduced by many Banks and also by PSUs like
Railways, Tourist centers etc. While the revenue-producing capacity of non-emergency type
of information at ATMs as a stand-alone product is doubtful, many customers may be willing
to pay a nominal fee for information having “impulsive” demand such as cricket scores while
they wait for their transactions to be processed. To be sure, providing information, whether
priced or free, will appeal to some customers and increase customer satisfaction.

Union Bank has used technology to establish Village Knowledge Centers (VKCs),
which have proved to be a success in the 198 centers, where they have been set up. VKCs
empower the local rural population by giving them information on various vital inputs such
as weather, fertilizers, prices of crops, etc. The bank is also operating financial education
centers offering counseling at 51 of these VKCs.
21
Third Party Advertising:

In India, ATM advertising for third-party products is currently not allowed by

Regulatory authorities. However, the wait time at ATMs can be effectively used by banks to
promote their own brands, product and services. Furthermore, banks can tailor advertising
messages based on customer information easily available in their accounting and CRM
databases. Customer wait-time at ATMs while transactions get processed, typically between
10 to 25 seconds, has been profitably used by many banks for their own advertising.

Money Transfers:

Indians, who have migrated abroad or to cities, regularly use money orders and wire
transfers to send money to their families back home. ATM growth, especially in rural India,
will capture substantial business from the expensive wire transfer agents’ network and the
customer-service lacking postal network. In line with international trends, ATMs can be
made capable to dispense printed money orders or initiate wire transfers against a charge on
customers’ bank accounts. After addressing regulatory hurdles, these services can even be
made available to non-account holders through cash payments using the currency acceptors
built into ATMs. ATMs can also facilitate the encashment of wire transfer amounts by
allowing even non-account holders to withdraw cash based on Pin’s or previously mailed
special-purpose ATM cards.

Recharge Mobiles via ATMs:

ATMs are also used to recharge mobile phones. Initiated in 2004 by ICICI Bank, now most
ATM/Debit Cardholders are able to recharge their pre-paid subscriptions of most mobile
service providers from anywhere in the country using their bank‘s ATMs or by sending a
SMS. The amount for recharging the mobile phone would be debited from the subscriber‘s
Bank account and the subscription would be directly recharged accordingly. The mobile top-
up facility provides convenience on ATMs and through mobile phones using SMS.

22
 CONSIDERATION USING ATM
Banks place ATMs in and outside of their branches. Other ATMs are located in high traffic
areas, such as shopping centers, grocery stores, convenience stores, airports, bus and railway
stations, gas stations, casinos, restaurants, and other locations. Most ATMs that are found in
banks are multi-functional, while others that are offsite tend to be those that provide simple
services.

ATMs require consumers to use a plastic card—either a bank debit card or a credit card—to
complete a transaction. Consumers are authenticated by a personal identification number
(PIN) before they can execute any transactions.

Many cards come with a chip, which transmits data from the card to the machine. These work
in the same fashion as a bar code that is scanned by a code reader.

ATM Fees
Account-holders can use their bank's ATMs at no charge, but accessing funds through a unit
owned by a competing bank usually incurs a fee. According to MoneyRates.com, the average
fee to withdraw cash from an out-of-network ATM was $4.66 as of February 2019. Some
banks may reimburse consumers the fee, especially if there is no corresponding ATM
available in the area.

ATM Ownership
In many cases, banks and credit unions own ATMs. However, individuals and businesses
may also buy or lease ATMs on their own or through an ATM franchise. When individuals or
small businesses, such as restaurants or gas stations, own ATMs, the profit model is based on
charging fees to the machine's users.

Banks also own ATMs with this intent; banks use the convenience of an ATM to attract
clients. ATMs also take some of the customer service burdens from bank tellers, saving banks
money in payroll costs.

23
Using ATMs Abroad
ATMs make it simple for travelers to access their checking or savings accounts from almost
anywhere in the world. When travelers use foreign ATMs, they receive a better exchange
rate than they would at most currency exchange offices. Additionally, using an ATM is easier
than cashing traveler's checks, and arguably, it makes travel safer as the traveler doesn't have
to carry a lot of cash.

However, the account holder's bank may charge a transaction fee or a percentage of the
amount exchanged. Most ATMs do not list the exchange rate on the receipt, making it
challenging to track spending.

24
 LOCATION OF ATM’s

ATMs can be placed at any location but are most often placed near or inside banks, shopping
centers/malls, airports, railway stations, metro stations, grocery stores, petrol/gas stations,
restaurants, and other locations. ATMs are also found on cruise ships and on some US
Navy ships, where sailors can draw out their pay.[53]

ATMs may be on- and off-premises. On-premises ATMs are typically more advanced, multi-
function machines that complement a bank branch's capabilities, and are thus more
expensive. Off-premises machines are deployed by financial institutions and independent
sales organisations (ISOs) where there is a simple need for cash, so they are generally
cheaper single function devices.

In the US, Canada and some Gulf countries,[citation needed]

 banks may have drive-thru lanes
providing access to ATMs using an automobile.

In recent times, countries like India and some countries in Africa are installing ATMs in rural
areas, which are solar powered.[54]

The world's highest ATM is located at the Khunjerab Pass in Pakistan. Installed at an

elevation of 4,693 metres (15,397 ft) by the National Bank of Pakistan, it is designed to work
in temperatures as low as -40 degree Celsius.

There are no hard international or government-compiled numbers totaling the complete

number of ATMs in use worldwide. Estimates developed by ATMIA place the number of
ATMs currently in use at 3 million units, or approximately 1 ATM per 3,000 people in the
world.[58][59]

To simplify the analysis of ATM usage around the world, financial institutions generally
divide the world into seven regions, due to the penetration rates, usage statistics, and features
deployed. Four regions (USA, Canada, Europe, and Japan) have high numbers of ATMs per
million people.[60][61] Despite the large number of ATMs, there is additional demand for
machines in the Asia/Pacific area as well as in Latin America. [62][63] Macau may have the
highest density of ATMs at 254 ATMs per 100,000 adults. [64] ATMs have yet to reach high
numbers in the Near East and Africa.

25
 FRAUD PREVENTION FOR CONSUMER

Most ATM frauds happen due to the negligence of customers in using, and more
importantly, negligence of banks in educating their customers about the matters that should
be taken care of while at an ATM.

The number of ATM frauds in India is more in regard to negligence of the Personal
Identification Number (PIN), than by sophisticated crimes like skimming. Banks need to
develop a fraud policy – the policy should be written and distributed to all employees,
borrowers and depositors. The most important aspect for reducing ATM related fraud is to
educate the customer. Here is a compiled list of guidelines to help your customer from being
an ATM fraud victim:

Look for suspicious attachments :

Criminals often capture information through ATM skimming – using devices that
steal magnetic strip information. At a glance, the skimmer looks just like a regular ATM slot,
but it‘s an attachment that captures ATM card numbers. To spot one, the attachment slightly
protrudes from the machine and may not be parallel with the inherent grooves. Sometimes,
the equipment will even cut off the printed labels on the ATM. The skimmer will not obtain
PIN numbers, however. To get that, fraudsters place hidden cameras facing the ATM screen.
There‘s also the helpful bystander (the criminal) who may be standing by to kindly inform
you the machine has had problems and offer to help. If you do not feel safe at any time, press
the ATM cancel button, remove your card and leave the area immediately.

Minimize your time at the ATM:

The more time you spend at the ATM, the more vulnerable you are. If you need to
update your records after a transaction, one is advised do it at home or office, but not while at
the ATM. Even when depositing a cheque at the ATM, on should not make/sign the cheque at
the ATM. After the transaction, if you think you are being followed, go to an area with a lot
of people and call the police.

26
Make smart deposits:

Some ATMs allow you to directly deposit checks and cash into your accounts without
stuffing envelopes. As for the envelope-based deposits, make sure they go through – if it gets
jammed and it doesn‘t fully go into the machine, the next person can walk up and take it out.
After having made the ATM deposit, compare your records with the account statements or
online banking records.

Avoid using ATMs at night:

While robberies are less prevalent than fraud at ATMs, there‘s still risk, especially at
night. And if you have to use an ATM late at night, use one at a bank itself. Financial
institutions have to follow certain guidelines and regulations as far as lighting is concerned.
They also have cameras on all the ATMs.

Be aware of your surroundings:

Before you slide your card into the machine, look around if the area appears safe or if
there is anybody who can see the PIN pad. Having the card ready before entering is ATM
premises is better than searching for it though the purse at the machine. While you are
fumbling with a wallet or purse, you are easy prey for a thief. A good rule of thumb is to
always shield your card, no matter how comfortable you are with the place. If your card is
stuck inside an ATM, be suspicious of anyone offering help. Immediately report the incident
to the bank

Keep your receipts and card before leaving the place:

Before you leave the machine, make sure you have your card. Also, do not leave your
receipt behind at the ATM. Keep copies of your receipts and compare them with your
monthly statement. As much as 83 percent of all ATM and debit fraud results from stolen
cards and discarded receipts bearing card/account numbers.

27
Memorize your PIN:

Many cardholders walk up to an ATM and pull out a piece of paper containing four
numbers. If you are not sure, make it a point that you don’t keep the PIN and ATM card
together in your wallet – If someone comes up and hits you over the head, they‘re going to
have all your information right there. But ideally, one should never write down the PIN
number – it should be memorized.

Never disclose your PIN to anyone:

Even bank officials do not require an ATM PIN – neither to process an issue
involving ATMs, nor to remove a card stuck in the machine. Always change the PIN as soon
as you receive it. Preferably, change it every quarter. This habit will also help remind you of
changing the PIN if you find a suspicious activity.

Never provide information via e-mail:

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

28
 ADVANTAGES & DISADVANTAGES

 ADVANTAGES:
 Ability to draw cash outside normal banking hours.

 Cheaper where bank charges are incurred and often quicker than using normal cashier
services.
 Does not just operate as a medium for obtaining cash.

 Amount up to a set limit per day is available.

 All customers can apply for the joint accounts two separate cards can be issued.
 Although ATMs are primarily located on bank premises, some are available
elsewhere.
 Where an incorrect PIN is used several times in succession (say where a thief has
stolen the card),the ATM will retain the card.
 ATM service is available for 24 hours a day,7 days in a week.

 It helps to check the balance in an account.

 It is easy, saves time of customers.

 DISADVANTAGES:
 If person who does not have sufficient money in its account, then in this case the
ATM may not recognize his card.
 May be ATM’s may not be situated near by when it is urgently required.
 If some one watches or hacks ATM machine then details of customers can be
misused.
 Banks have maintained a limit of Rs 10,000/- per transaction. This information is
displayed on the ATM. The maximum limit is Rs.25000/- per day. No one can
withdraw money beyond this limit.

29
 ATM CARD v/s DEBIT CARD

Although both these cards serve the same purposes, most of the banks favour in the
issue of credit cards. When you purchase something with a debit card, the money is
automatically deducted from your savings account. This is different from the way a credit
card works. For a credit card, you get a monthly bill for the amount you have spent. You can
take money directly with the help of an ATM card. But, with a debit card, you can only
purchase things. You can use ATM cards for some direct purchase as well, but it is limited.

Debit cards can be used in different fields like grocery stores, hotels, booking tickets,
pharmacies and so on.

As credit cards are easier to use, some hotels and rental services often do not accept debit
cards. Credit cards also bring in lesser risk and are also cheaper.

There is a difference when using a credit card and a debit card when checking into a
hotel. In the case of a credit card, the original amount will be billed in your account. When a
debit card is used, a certain amount of money which includes the cost/rent of the room and an
additional amount which may be a percentage of the total fee will be kept as an “on hold” bill
in your bank account. The additional money is kept as a precaution as a damage money.
When you check out of the hotel, you will be billed the original amount of your stay. But the
difference between the “on hold” money and your actual money will be released back to your
account.

The next difference comes in the way you bill the amount. If it is a debit card, you
will have to enter your unique pin number. If it is a credit card, you will have to sign a slip.
Some banks even put a fee for your debit card.

There is also a difference in appearance between an ATM card and a debit card. A debit card
has the users name, the company’s logo, the bank’s logo and also written “Check card” in
front of it. An ATM card, on the other hand has the user name, account number and also the
bank logo. Both the cards have a common strip on the back of the card, so that the user can
sign on it.

30
 SCOPE OF ATM IN INDIA

Automated Teller Machines (ATMs) have gained prominence as a delivery channel

for banking transactions in India. Banks have been deploying ATMs to increase their reach.
As at the end of December 2007, the number of ATMs deployed in India was 32,342.

From first day of April 2009, entire ATM network is now availableto customers from
any bank for transactions for no fee at all, irrespective of the banks in which they have their
accounts, Now Customers will not be levied any fee on cash withdrawals using ATM and
debit cards issued by other banks. This will in turn increase usage of ATMs in India

More people are now moving towards using the automated teller machines (ATM) for
their banking needs. According to a survey by Bank net India, 95% people now prefer this
modern channel to traditional mode of banking. Almost 60% people use an ATM at least
once a week

Increased ATM usage is also helped by the fact that customers have now the flexibility
of using ATMs of other banks, as most of the banks are part of major interbank networks like
National Financial Switch (NFS), Mitr, BANCS, Cash tree and Cash net. The interbank
networks have brought together ATMs of several banks so that consumers would gain access
to any of the participating banks’ ATMs. Banks find it cheaper to pay membership fees to
these networks as against setting up additional units in expensive-to-deploy areas.

ATMs are now seen to be more than mere cash dispensing machines. Customers use
ATMs to recharge their mobile phone pre-paid connections, pay their utility bills, even
mutual fund transactions – making them at par with flexibility given in internet banking –
only more secure. Of the value-added services provided at ATMs, bill-payment is the most
used service, followed by prepaid mobile talk-time recharges. However, still about one third
of the respondents do not use any value added services at ATMs.

The ATM market in India is not yet saturated. Though the concentration of ATMs is
greater in metros, the demand is increasing for other cities and even rural areas. ATM's per
million people approximately is 33 units is very low. Experts forecast that the growth rate is
expected to grow 18 percent up by 2013. Banks going into a self service model can have huge
saving potential for banks and may also increase the convenience for the customers.

31
 Many ATM vendors have devised specialized machines, embedded with biometric
devices for authentication. Catering to the rural population, these machines have enabled
them to interact with the machine in their local language and on a graphical user interface.
The rural customer has seemed to accept this new medium. This has the potential to further
widen the scope of ATM usage in the interior parts of the country. There is also interest
towards white-label ATMs. Many companies are interested in this model, where the
ownership of the ATM will not be with the banks but with third parties who deploy them and
make money on fees charged on every transaction. The concept is prevalent in the American
continent Wide acceptance of ATMs by consumers, introduction of biometric ATMs, and
increasing scope of value-added ATM services will maintain growth in the industry.

32
 ATM CARD v/s CREDIT CARDS

(ANALYSIS OF HDFC BANK)

An ATM Card is different from a Credit Card. Using your ATM Card, you can access
your account and carry out most of your banking transactions, round the clock. But you
cannot shop with your ATM Card. Also, unlike a Credit Card, your ATM Card prevents you
from over-extending yourself by permitting you to withdraw cash only as long as there is
money in your account. Finally, if you withdraw cash using a Credit Card, you will be
charged a service fee, whereas using an ATM Card does not attract any charges.

Necessary to maintain minimum balance:

It is necessary to maintain any minimum balance in the account for using the card.
One can only withdraw to the extent of the balance in the account.

Fund transfer option at the ATM :

In order to use the Funds Transfer option, you must have more than one Savings
(single, either or survivor) or sole proprietorship Current Account with the bank. You need to
make a request at any of our branches or on PhoneBanking to link your accounts to your
Card. Once the accounts are linked to your ATM Card, you can use the Funds Transfer
option.

Charge on ATM transaction:

HDFC Bank does not charge on its customers who maintain the required AQB or on
other Bank customers for using their ATM. For customers of HDFC Bank who have not
maintained the required AQB in the previous quarter, all inter-city cash transactions will be
levied Rs 1.50 per Rs 1000, minimum Rs 25.

Cards that can be used at HDFC ATM:

1. American Express : Charge/Credit Cards.

2. Cirrus:

MasterCard Credit Cards - Domestic/International (of domestic, currently only Citibank,

Standard Chartered and ANZ MasterCard Credit Cards can be used at our ATMs).
33
 Cirrus ATM Cards - Domestic/International

Maestro Debit Cards - Domestic/International (of domestic Cirrus/Maestro Cards,

currently only Citibank Maestro/Cirrus Cards can be used at our ATMs) .

3. Plus:

VISA Credit Cards - Domestic/International (of domestic, currently only Citibank,

Standard Chartered, HSBC and ANZ can be used at our ATMs)

Plus ATM Cards - Domestic/International

VISA Electron Debit Cards - Domestic/International

Note: All cards which can be used at HDFC ATM need to have a Personal Identification
Number (confidential code) for ATM access. This is issued by the Bank issuing the Card.
Limits and parameters are set by the Card issuing Banks regarding amount of cash
withdrawal, withdrawal limit, number of PIN log-in attempts, transaction set allowed and
declines.

Cash advance / Cash withdrawal limit :

HDFC bank customers can withdraw up to Rs.10,000/- per day. For non HDFC customers,
the limit is as decided by the bank issuing the card.

Liability incase an ATM / Debit card is lost or stolen :

For doing an ATM transaction, two things are required; an ATM / Debit card and PIN, which
is known only to the customer. In case your ATM /Debit card is lost/stolen, any transactions
taking place using the card on an ATM is the result of you compromising your PIN which
should have been known only to you and no other person. Thus in such a scenario you are
liable for the loss incurred due to the transaction happening on the ATM. However, there is
'Zero Liability' applicable for Debit cards only on fraudulent Point of Sale Transactions and
not ATM transactions.

34
Card lost or stolen :
In case card is lost / stolen, as first step you need to block your card in order to avoid
any fraudulent transaction happening from your account.

IF ATM card get stuck inside any other bank ATM :

In case HDFC Bank card gets captured inside any other Bank's ATM machine you
are requested to block your card immediately by either Calling up the local HDFC Bank .

In case ATM pin is forgotten by card holder:

One can place the request for regeneration of ATM PIN either Calling up the local
HDFCBankPhoneBankingNumber.

C
harge incurred for regenerating ATM PIN :

One will be charged Rs.25/-(exclusive of taxes) towards regeneration of the ATM

PIN.

35
 (ANALYSIS OF IDBI BANK)
Meaning of ATM :

Automated Teller Machine is a computerized machine that provides the customers of

banks the facility of accessing their accounts for dispensing cash and to carry out other
financial transactions without the need of actually visiting a bank branch.

Types of card used :

The ATM cards/debit cards, credit cards and prepaid cards (that permit cash
withdrawal) can be used at ATMs for various transactions.

Transaction at ATM :

For transacting at an ATM, the customer insert (swipe) their card in the ATM and
enter their Personal Identification Number (PIN).

Services and Facilities :

In addition to cash dispensing ATMs may have many services/facilities such as:

 Account information
 Cash Deposit
 Regular bills payment
 Purchase of Re-load Vouchers for Mobiles.
 Mini/Short Statement
 However, if the card is used at an ATM of any other bank, the customer would
be able to do only cash withdrawal and balance enquiry transactions.

Uses of ATM card at any bank of country :

The cards issued by banks in India should be enabled for use at any bank ATM
within India.

36
Personal Identification Number(PIN) :

PIN is the numeric password for use at the ATM. The PIN is separately
mailed/handed over to the customer by the bank while issuing the card. This PIN has to be
reset to a new PIN by the customer. Most banks force the customers to change the PIN on the
first
In case one has forget his Pin or card is sucked by the ATM :

The customer may contact the card issuing bank branch and apply for issuance of a
new card. This procedure is applicable even if the card is sucked in at another bank's ATM.

Card lost or stolen :

The customer may contact the card issuing bank immediately on noticing the loss so
as to enable the bank to block such cards.

Minimum and Maximum cash withdrawal limit per day :

Banks set limit for cash withdrawal by customers. The cash withdrawal limit for use
at the ATM of the issuing bank is set by the bank during the issuance of the card. For cash
withdrawals at other bank ATMs, banks have decided to maintain a limit of Rs 10,000/- per
transaction. This information is displayed on the ATM. The maximum limit is Rs.25000/- per
day.

Service fees charged for use of other bank ATM :

No charges are payable for using other bank's ATM for cash withdrawal and balance enquiry,
as RBI has made it free under its "Free ATM access policy" since April 01, 2009. But banks
can restrict the number of such free transactions to a maximum of five per month. For
transactions beyond this minimum number of transaction, banks charge maximum of Rs 20/-
per transaction.

37
In case, during the cash withdrawal process cash is not disbursed butthe
account gets debited for the amount :
The customer may lodge a complaint with the card-issuing bank. This process is
applicable even if the transaction was carried out at another bank's ATM.

Days required by the bank to re-credit the account for such wrong debits :
As per the RBI instructions, banks may re-credit such wrongly debited amounts
within a maximum period of 12 working days from the date of receipt of the customer's
complaint.

Customers eligible for compensation for delays beyond 12 working days :

Effective from July 17, 2009, banks shall have to pay customers Rs 100/- per day for
delays beyond 12 working days. This shall have to be credited to the account of the customer
without any claim being made by the customer.

In case of compensation is not credited as mandated :

For all such issues, customer may lodge a complaint with the bank and if the bank
does not respond, the customer may approach the local Banking Ombudsman

38
 MAJOR ATM ISSUES

No one likes to see the dreaded “Out of Order” sign on an ATM. When customers
need cash they want, and expect, the ATM to work as needed. ATM owners would be wise to
conduct regular servicing and maintenance on their ATMs so as to avoid frustrated customers
who cannot access their cash. Nevertheless, ATMs are machines and machines sometimes
break. There are 5 common ATM issues that owners should keep an eye out for because they
will likely need to be repaired by an ATM service professional.

1. Faulty Dispenser
A rare, but exceedingly frustrating issue that can occur is an ATM that has a faulty
dispenser. This means that a customer has inserted their bank or credit card into the ATM and
entered their passcode or pin. They’ve selected to withdraw cash and the cash amount, but the
machine fails to dispense the cash or the right amount of cash. And yet, the customer’s
account has been debited the full amount. This kind of issue needs to be remedied right away
as it creates hassles for both the customer, the ATM owner, and the issuing bank.
When an ATM fails to dispense the requested cash, customers will likely file a claim against
the owner for the amount debited from their account. ATM owners will need to do everything
they can to find out what happened. In addition to calling out a service repair professional,
ATM owners will likely need to watch any surveillance video to see what happened during
that transaction, count the machine’s cash totals, and look for any hidden devices that may
have directed the cash elsewhere. Since faulty dispensers can create quite the headache for
everyone involved, and are a security risk, regular maintenance for ATMs is recommended to
prevent this from happening in the first place.

2. Worn Out Card Reader

Every bank card or credit card has a dark stripe on the back. That line is a magnetic
strip which contains specific details about the card and its owner. When the bank or credit
card is swiped at an ATM, the reader verifies the information on the card before it authorizes
the transaction. Over time, especially if the machine is highly used, ATM card readers can
wear out. This means that the information on the back of the card cannot be read to verify the
card user’s banking information. An ATM service repair professional can examine the reader
to see if it needs to be cleaned, repaired, or fully replaced in order to work properly again.

39
3. Broken Keypad
Many ATMs still have a physical keypad on their machine where customers enter
their passcode or pin in order to complete their transaction. Every once in a while these
keypads can break, effectively causing the ATM to become unusable. A button on the keypad
might become stuck or generally won’t respond when pressed. Much of the time this is an
issue that will need to be repaired by a service repair professional who can disassemble the
ATM to figure out why the keypad is not working.

4. Receipt Malfunctions
In order to have a record of their ATM transaction, customers need to have a paper
receipt. This will help customers identify the time and location of their transaction in the
event that there is an issue with the ATM, such as a faulty dispenser. However, periodically
an ATM will have an issue with dispensing a paper receipt. Some things that an ATM repair
professional will look for are whether or not the machine has run out of paper. Is there a jam
in the machine preventing the ATM from dispensing the receipt? Is the printer out of ink?
Since the receipt contains vital information about the ATM transaction, it’s imperative that
any issues with printing receipts is handled right away.

5. Software Glitches
ATM technology has advanced exponentially in recent years. Many, if not most,
ATMs now have touch screen and other technology that relies on computer software to
function. And like other machines that run on computer software, ATMs can have software
glitches. ATM software needs to be updated on a regular basis. However, even with regular
maintenance malfunctions can occur. A service repair professional will be able to scan the
ATM for viruses, install new and updated software, and fix any glitches that may be
occurring.

40
 HARDWARE & SOFTWARE
An ATM is typically made up of the following devices:

 CPU (to control the user interface and transaction devices)

 Magnetic or chip card reader (to identify the customer)
 a PIN pad for accepting and encrypting personal identification number EPP4 (similar
in layout to a touch tone or calculator keypad), manufactured as part of a secure enclosure
 Secure cryptoprocessor, generally within a secure enclosure
 Display (used by the customer for performing the transaction)
 Function key buttons (usually close to the display) or a touchscreen (used to select the
various aspects of the transaction)
 Record printer (to provide the customer with a record of the transaction)
 Vault (to store the parts of the machinery requiring restricted access)
 Housing (for aesthetics and to attach signage to)
 Sensors and indicators

Due to heavier computing demands and the falling price of personal computer–like
architectures, ATMs have moved away from custom hardware architectures
using microcontrollers or application-specific integrated circuits and have adopted the
hardware architecture of a personal computer, such as USB connections for peripherals,
Ethernet and IP communications, and use personal computer operating systems

Business owners often lease ATMs from service providers. However, based on the economies
of scale, the price of equipment has dropped to the point where many business owners are
simply paying for ATMs using a credit card.

41
 PHYSICAL SECURITY
Early ATM security focused on making the terminals invulnerable to physical attack; they
were effectively safes with dispenser mechanisms. A number of attacks resulted, with thieves
attempting to steal entire machines by ram-raiding.[80] Since the late 1990s, criminal groups
operating in Japan improved ram-raiding by stealing and using a truck loaded with heavy
construction machinery to effectively demolish or uproot an entire ATM and any housing to
steal its cash.

Another attack method, plofkraak, is to seal all openings of the ATM with silicone and fill the
vault with a combustible gas or to place an explosive inside, attached, or near the machine.
This gas or explosive is ignited and the vault is opened or distorted by the force of the
resulting explosion and the criminals can break in.[81] This type of theft has occurred in
the Netherlands, Belgium, France, Denmark, Germany and Australia.[82][83] These types of
attacks can be prevented by a number of gas explosion prevention devices also known as gas
suppression system. These systems use explosive gas detection sensor to detect explosive gas
and to neutralise it by releasing a special explosion suppression chemical which changes the
composition of the explosive gas and renders it ineffective.

Several attacks in the UK (at least one of which was successful) have involved digging a
concealed tunnel under the ATM and cutting through the reinforced base to remove the
money.[74]

Modern ATM physical security, per other modern money-handling security, concentrates on
denying the use of the money inside the machine to a thief, by using different types
of Intelligent Banknote Neutralisation Systems.

A common method is to simply rob the staff filling the machine with money. To avoid this,
the schedule for filling them is kept secret, varying and random. The money is often kept in
cassettes, which will dye the money if incorrectly opened.

42
 FUNCTIONING OF ATM’s
With minor variation most ATM transactions occur in the same manner. Cardholders
insert their card with its magnetic strip loaded with account information in to the ATM. They
then enter the personal identification number (PIN), which the bank has assigned using the
number pad. The ATM contacts the local host, from where the transaction can take several
routes.

The transaction are to be authorized by the local host itself. If it is not authorised by
the local host it is either routed directly to the issuer bank for validation (if they are on the
shared network),or sent to a network like plus or cirrus, which are run by VISA and master
card , respectively. The PIN and the account information are transmitted from here and the
transaction is directed towards the institution that has issued the card. It goes through all the
validation and authorisation routines such as verifying the correctness of the PIN, checking
the limits on withdrawals and sufficiency of funds in the accounts. If all the routines are
executed successfully, the transaction is send back to the ATM to complete the transaction.
Each machine may be connected to several networks.

Bank owns the ATM but the bank may not or may own the network the ATM can be
connected to the shared network that’s serves many bank or the massages can be routed to the
VISA, MASTER or equivalent networks. Identify, the transaction would take the lowest
network level that can completed the task. The switch after getting the transaction from the
ATM checks first to see the whether the bank issued the card owns the ATM or not. If the
issuer of the card is not members of the shared network ,one of two things can occur.
Sometimes to networks will have an agreement to accept each other cards, and as part of that
agreement, have an electronic gateway that allows them to accept each other transaction.

43
 MODELS OF AUTOMATED TELLER MACHINES
There are three models of automated teller machines. They are:

(a)Wall Type

(b)Lobby Type

(c)Drive-in type.

In all the three models, the facial of the ATM only is visible to the user. The main
equipment is kept securely in the neighbouring room.

a) Wall type ATM:

In the wall type ATM, the facial of the ATM is located in closed lobby. The access to
the lobby is restricted. The cardholder has to insert the card in a slot kept near the
door outside. When the card is inserted through the slot an independent card reader
reads the cards in if it funds it as aauthorised cards the door mechanism is activated
and the card holders will be permitted to be operate the knob on the door to gain entry
into the lobby. Generally, the ATM is placed directly opposite the door, so that the
video surveillance camera captures the picture of the person trying to get access into
the room. The camera takes picture of the customer putting through the transaction
along with the time and date of transaction and these are recorded in the video
cassette tape. The video surveillance system installation is optional to the bank. In
USA, installation of the video surveillance system is mandatory as per regulations.
The video surveillance system comes handy in case of disputed transactions as well as
to detect fraudulent transactions. It also helps the banks to protect its interest in case
of robbery of the customer immediately after withdrawal. The restriction of free
access to the ATM also protects the system from vandalism. Some mischievous
elements try to break open the system to rob the cash stored therein. Some also try to
create mischief by tampering the system and throw it out of order.

b) Lobby Type:
The lobby type ATM is placed in a secure place but the facial opens into the lobby of
the banking hall, hotel, airport lounge, etc. This type of system is generally installed
where the place is generally guarded or in busiest place. A shutter, which opens up on
44
 inserting the card in a slot, protects some of the lobby type, and then only the machine
is exposed for transactions.

c) Drive-In-Type:
In case of drive-in-type, the facial is one facing the road front. The purpose is that the
customer should be able to operate the ATM without getting out of his car. Such type
of systems is exposed to atmosphere and dust and has to be more rugged. Such a
system is also more exposed to vandalism than the other two. ATM services, till date,
have been confined to withdrawal and deposit of cash from bank accounts by
customers, but NCR Corporation India has included several value-added services on
its ATMs, such as, utility bill payments, ticket reservations (airline and railway tickets
booking) and the facility to deal in mutual fund units. The new ATM services include
selling cinema tickets also. Banks are, therefore, likely to install more and more
ATMs.

45
 CREDIT CARD v/s DEBIT CARD

Credit Card Debit Card

User accesses his line of credit User accesses his account

Customer can utilize up to the credit limit Can utilize up to the balance available in his
sanctioned to him account subject to withdrawal limits

Payment is made on receipt of Payment is made immediately by debiting the

customer’s account
bill from the issuer and before due date

Customer may or may not have Customer must maintain an account and also
balance
an account with the issuer

Payments are made from any other Payment is made only from his account
bank account

46
 CUSTOMER & TECHNOLOGY

 The customers today are computer-savvy, more demanding and time conscious.
 They demand global standards of service and make comparisons.
 They no longer are willing to stand in long queues and tolerate indifferent behavior of
the bank staff.
 They have many options to choose from and hence do not hesitate to switch loyalty,
 They expect to be empowered through self-service channels such as ATMs, Tele
Banking and Internet Banking.

All banks have realized the transition of Indian customers and hence have changed their tact
in wooing them to their fold by providing them with the latest technology. Installation and
networking of ATMs is one such weapon in this emerging strategy. It is no longer a question
of whether to install ATMs or not but of deciding how many and where.

Obviously, ATMs would cost the bank but the lack of it would cost more. Technology is
emerging as a key differential in the banking industry for attracting and retaining customers.
Aggressive business strategy is impossible without the use of Technology. The electronic
delivery channels provide not only 24 hours customer service but also a wide range of
products, customized services besides reliability and consistency.

47
 APPLICATION OF CREDIT CARD

The utility of the credit is derived from its ability to buy goods and services without
actually paying for them immediately. The process is a continuous cycle involving the
following steps:

The cardholder makes purchase from the authorized mgrchants by producing his credit
card and obtains the goods or services.

The merchants submit a claim to the bank. The bank makes payment to the merchant for
the value of goods/services sold.

The bank sends notice to the customer to make payment for the goods and services
purchased.

The cardholder makes payment to the bank.

The credit card industry has been growing at the rate of 35 per cent in the last few
years. Despite this rapid growth, the penetration levels for credit are still very low.
Considering India's population of one billion and the country's ever-growing middle class,
the industry has a lot of potential for growth. Under this card, the cardholder is given a limit
that can be used as a personal overdraft limit under his credit card account. The cardholder
need not settle his bill upon presentation; instead, he can choose to defer the payment to a
certain pre-specified extent till the next billing cycle.

This is useful largely for semi-official usage and personal expenses like durable,
education fees, etc. where the cash flow can be planned over a period. In India this kind of
card has been operational since 1964 in the form ofthe Diners card. The Central Bank and
Andhra Bank issued cards in 1980, and Bank of Baroda in 1985. The 90s saw the entry of
almost all banks including the multinational banks that came to India.

48
 ATM v/s TELLER

ATM Teller
It is automatic. It is manual.

ATM can handle any number of Human being can handle a limited number of
transactions per day. transactions per day tailor.

ATM can provide round the clock Services are available during the fixed and
service throughout the year. predetermined timing on the work index.

Cash is provided by the ATM only in Cash can be sought by the customer in any
pre-specific denominations denomination depending upon availability in the
bank at the specified time.

Only one card i.e. the ATM card is A written and signed instrument is to be presented
enough for cash withdrawal. for each transaction.

Can be transacted from anywhere (If net Only at the branch where the account is opened.
worked).

Identification by team. Identification by the signature/Photo.

Card holder has to present himself. Third party withdrawal allowed.

No additional work can be entrusted. Additional work can be entrusted (viz. Day,
Book, Writing, Interest, Application etc.).

Not subjected to any stress or strain. Turnover depends on mental and physical status
of the employee.

Service is quick and instant. Service depends on the capacity of the employee.

49
Transaction is error free. Sometimes transaction may go wrong.

Other facilities like balance inquiry, Only money transaction.

mini statement, cheque book issue, etc.
are available.

Card need not any accompany passbook. Withdrawal should accompany related passbook.

Facility available in pleasant atmosphere Depends on general ambience of the branch.

No personal touch/recognition Personalized service available.

Limit per day is fixed Only per transaction selling no maximum limit
per day.

50
 NEW ATM CASH WITHDRAWAL RULES EXPLAINED IN 5
POINTS

 RBI sets timelines for reversal of failed ATM transactions

 Banks have to pay a specified compensation per day if the amount is not reversed within
a specified time period

ATM
The Reserve Bank of India or RBI last week come up with a new set of rules prescribing a
turnaround time for banks to settle failed transactions, including failed ATM transactions
where customer’s account was debited but cash was not dispensed. In such cases of failed
ATM transactions, the RBI has specified compensation banks have to pay to their customers
if the amount is not reversed within a specified time period. Earlier the RBI had said that
failed ATM transactions due to non-availability of cash at ATMs, invalid PIN or other non-
cash withdrawal transactions cannot be counted as free transactions.
The are over 2.2 lakh ATM machines in the country, according to RBI's latest annual report.

Here are 5 things to know about new ATM rules:

1) According to new rules, if banks fails to reverse failed ATM transaction where account
was debited but cash was not dispensed, banks have to pay a compensation of ₹100 per day if
they don't reverse the transaction within a maximum of T + 5 days. T refers to the day of
transaction and refers to the calendar date. This rule also apply to such failed transactions at
micro-ATMs.

2) The RBI had last month clarified that ATM transactions that fail due to technical reasons
like hardware, software, communication issues cannot be counted under valid transactions.
Many banks offer a fixed number of ATM transactions as free to their customers. Beyond
that they charge customers. RBI said that banks cannot charge customers for these failed
ATM transactions.

51
SBI, for example, allows free transactions to its customers at ATMs for 8-10 times in a
month. Over and above these mandated number of free transactions, SBI charges a certain
amount to its customers.

3) Also, ATM transactions that failed due to non-availability of currency notes in the
machine cannot be counted as valid transactions and cannot be charged.

4) Other failed ATM transactions due to invalid PIN/validations, and other transaction
declines attributable to the bank or services provider cannot be counted as valid transactions.

5) Non-cash withdrawal transactions from ATMs such as balance enquiry, cheque book
request and funds transfer, as part of ‘on-us’ transactions, cannot be a part of the number of
free ATM transactions, RBI said in a 14 August circular. On-us" transactions refer to where
the debit card and ATM are of the of the same bank.

52
 HOW TO APPLY FOR NEW 'ATM CUM DEBIT CARD ONLINE
(SBI BANK)

Since Debit Cards have already become so popular as a medium of transaction in recent
times, you do not have to apply for them separately. Usually, whenever you open a savings
account with any major bank. they offer you a Debit Card alongside. Thus, you are saved the
trouble of applying for a Debit Card separately.

If your bank does not provide you with these services, you can always apply for a Debit Card
by submitting an application at your nearest bank branch. You will be issued with a
functional Debit Card within 2-3 days of your application.

If you have an online SBI account, then you can easily avail the online service to apply for
your new SBI ATM cum Debit Card without visiting the branch. You just need your login
credentials and SBI profile password to apply for new SBI ATM Card online. Your mobile
number is mandatory for availing the online debit card up gradation.
So, in case, if you have lost your SBI ATM Card or it is stolen then you can easily replace
your SBI ATM cum Debit Card and apply for the new SBI ATM Card Online.

53
Here are the steps you need to follow to apply for the new SBI ATM cum
debit card online.

Step 1: Visit www.onlinesbi.com

Step 2: Login to SBI net banking portal by providing the username and password details.
Step 3: Select 'e-Services and click on 'ATM card services' option.
Step 4: A new page will appear. Click on 'Request ATM/debit card' option.
Step 5: Two options will appear. (1. Using one time password (OTP) 2. Using profile
password). You can choose any option.
Step 6: If you select the one time password. Then you will receive a message in your
registered mobile number.
Step 7: Enter that one time password. Click on 'Submit' option.
Step 8: All your accounts will be displayed on the next page, under primary and secondary
accounts option.
Step 9: If you have only one account. Same details will be shown on both the options.
Step 10: Select the account of which you want the card to be issued.
Step 11: Enter the name that you want to be printed on the card. Select the type of card.
Accept the terms and condition. Click on the 'submit' option.
Step 12: A new page will appear, verify all the details and click on 'submit' option.
Step 13: A new message will be displayed on the screen that 'Your card request has been
recorded.
You will receive your SBI ATM cum Debit Card within 7-8 working Days at your registered
address'.

54
 ATM & DEBIT CARD GUIDE

To enjoy the many conveniences ATM/Debit card offer, you are advised to follow some
important safety tips:

Choosing a PIN
 Do not use obvious and guessable numbers for your PIN like, your date of birth,
telephone number etc
 Protect personal identification numbers (PINs) by memorizing it, and never writing it
on your card, storing it with your card or letting someone else enter it. 
 Never provide your PIN, card number or personal information in response to an e‐
mail.
 Keep your personal identification number (PIN) to yourself.
 Change your PIN periodically and, if you think it may have been compromised,
change it immediately.

Choosing an ATM
 Where possible, use ATMs with which you are most familiar. Alternatively, choose
well‐lit, well‐placed ATMs where you feel comfortable
 Avoid using the ATM if it looks too isolated or unsafe.
 Survey your surroundings for any suspicious activity before withdrawing money.  
 If anyone or anything appears to be suspicious, leave the area at once. If you drive to
an ATM, park close to the terminal and observe the entire area from the safety of your
car before getting out.
 Take another person with you to an ATM whenever possible, especially if at night.  
 Avoid opening your purse, bag or wallet while in the queue for the ATM. Have your
card ready in your hand before you approach the ATM.
 Notice if anything looks unusual or suspicious about the ATM indicating it might
have been altered. If the ATM appears to have any attachments to the card slot or key
pad, do not use it.  
 Check for unusual instructions on the display screen and for suspicious blank screens.
If you suspect that the ATM has been interfered with, proceed to another ATM and
inform the bank.

55
Using an ATM
▪ Prompted to enter your PIN twice, or if you notice unusual messages on the screen, go
to another ATM. However, if there is a time out or if the transaction is canceled and
you enter your PIN a second time, check your statement to be sure the transaction If
you are does not appear twice.
▪ Prevent "shoulder surfing" by standing between the ATM and anyone waiting to use
the terminal. Shield the keypad as necessary when entering your PIN and transaction
amount.
▪ Do not allow anyone to distract you while you are at ATM.
▪ Never let a stranger assist you with an ATM. 
▪ Never Force your card into the card slot.
▪ Minimize time spent at the ATM when conducting a transaction.
▪ When your transaction is complete, put your card, money and receipt away and
immediately leave the area. Do not count your money while at the ATM.
▪ If for any reason your card is not returned to you by the ATM, contact your bank
immediately.
▪ Follow the instructions on the display screen, e.g. do not key in your PIN until the
ATM requests you to do so.
If you are followed after using ATM, seek a place with people, activity and security.

Using ATMs Abroad

▪ Verify your balances to make sure you have enough money in your account to cover
your trip expenses to avoid running out of cash overseas.

▪ It’s important to have a back‐up plan in case your card is lost, stolen or held by ATM.
It could be in the form of a second ATM card from a different issuer, cash, credit
cards or traveler's cheques.

▪ Notify the bank beforehand and get a note added to your account so it does not get
passed through the fraud section due to sudden change in account activity.

▪ Get international ATM support specifically activated for your ATM / debit card.

▪ Ask your bank for a contact number that you can call from overseas in case of need.

56
 ▪ Many ATMs abroad don’t accept PIN longer than four digits. If your PIN is longer,
change it.

▪ Foreign ATMs often don’t have “0” (zero) digit button. So, make sure to change your
PIN before leaving for abroad.  

▪ Ask about overseas transaction and currency conversion fees

▪ Banks charge either flat rate or a percentage of withdrawal amounts as transaction

fee.Check with your bank before going abroad.

▪ ATMs have daily withdrawal limits which may or may not match those imposed by
your bank. Ask about your bank limits and remember to plan it ahead in case you
encounter lower withdrawal limits on your trip.  

▪ At the time of payment, always check your receipt to ensure that transaction is not
involving your home currency in a country that doesn't use that currency . Ask the
merchant to re‐do the transaction in the local currency and immediately report the
incident to your credit card issuer.  

▪ Foreign currency transaction fees will be charged if the merchant uses a foreign bank,
even if the transaction is made in your home or local currency

Protection of Card :

▪ Ensure to sign the signature panel of your card as soon as you receive it.

▪ Treat your card like cash and ensure safe keeping of your card all the times. 

▪ Cards are sensitive to mechanical, electromagnetic and sun impacts. Shield your card
properly.

▪ Be aware of the expiry date on your card.

Other General Tips:

▪ Immediately report a lost or stolen card to keep it from being misused and to limit
your liability.
▪ If you change your residence, inform your new address to the bank on priority basis.
▪ Shop carefully online – only use secure sites and network connections.  

57
 ▪ When you use your card for purchases, make sure that your debit card is swiped in
your presence and don’t let it swiped on multiple devices.
▪ In case of any problem, inform the bank’s call centre and obtain a complaint number.
▪ Regularly check your account statements for unauthorized transactions. 
▪ Don't discard your receipts and mini‐statements or balance inquiry slips which contain
important information.

ATM DEPLOYMENT

Achieve Higher Service Efficiency and Reliability with End-to-end ATM

Deployment Services
The world ATM markets are expected to grow at a brisk pace fuelled by demand from India,
China and other developing regions. Banks are looking to outsource ATM deployment and
management to expert partners for service efficiency at reduced costs. This would help them
to focus on their core business initiatives.

Successful ATM deployment poses significant challenges in terms of location, infrastructure,

physical security, regulatory compliance and directives on financial inclusion. With
increasing operational costs, banks are pressured with the need to improve profitability and
margins without compromising on the timeliness and reliability of deployment.

FSS’ end-to-end ATM deployment brings together high domain expertise, wide reach,
efficient multi-vendor coordination, industry best practices, cutting edge tools and service
methodologies, and efficient project management capabilities. All in a shared service model
to increase your top line and bottom line revenues.

58
 Seamless Efficiency. Comprehensive Services.

As a leading player and trusted partner, we have successfully managed ATM deployment for
more than 25 leading public and private banks across India. From identifying real estate,
obtaining mandatory approvals, ATM installation and related infrastructure, we provide a
single point of comprehensive services.

We have a proven track record of ATM deployment across diverse locations to maximize
transactions and enhance reach. We leverage the power of analytics to identify strategic
locations to maximize footfall and profitability.

Features of Distinction

 Robust-Deployment-Process
Site selection, site implementation services, asset procurement, communication and network
management, ATM installation and ‘go-live’ – we give you a robust, end-to-end and
complete deployment solution.

 Efficient-Project-Management
We set up an effective project management structure that involves senior leadership, project
and field teams of banks and our organization. We factor accessibility, visibility,
demographics and density of ATMS to ensure efficient site selection. Our site
implementation covers site feasibility, plan and layout, and local clearances. A dedicated
procurement and infrastructure team ensures efficient asset procurement, network
connectivity and ATM installation. With meticulous quality checks and sign-offs from
relevant stakeholders, we ensure a seamless ‘go-live’.

 Strategic-partnerships
We leverage strong vendor partnerships with various ATM, UPS, VSAT, AC manufacturers,
consumables and cash management companies to ensure timely deliveries and seamless
installations.

 Dependable-Infrastructure
With our proven experience we provide the most efficient infrastructure for different

59
locations. We intelligently deploy alternative approaches to connectivity, power requirements
to ensure reliable business continuity and maximizing availability.

60
 ATM MONITORING

Enhance ATM Performance and Heighten Customer Satisfaction Through

Meticulous Monitoring
For banks, ATMs are critical self-service channels that need to be monitored and
managed to ensure business continuity and positive customer experience. For the CIO, the
challenges that need to be addressed include proactive avoidance of escalation, lower mean
time to repair (MTTR), insightful reporting and higher ATM availability that translate into
enhanced customer satisfaction, and Increased transactions and interchange revenues. For the
Operation Managers, the requirements of lower operating costs, right access controls,
security, SLAs, business continuity and multi-vendor management need to be fulfilled.

FSS’ integrated ATM Monitoring and Incident Management Services enable banks to
efficiently streamline monitoring and ensure proactive maintenance, uninterrupted services
and enhanced security. Through state-of-the-art monitoring tools, industry best practices and
highly skilled professionals, we enable banks be in total control of their geographically
dispersed ATMs.

61
ATM Applications
There are many ATM applications are provided for customers besides cash transactions.
ATM machine today can also perform the following:

▪ Sell Gift Cards. o Sell Wireless Minutes.

▪ Western Union Transfers.

▪ Sell prepaid Debit Cards.

▪ Bank Deposits.

▪ Cash Checking.

▪ Bill Payments.

ATM Accessing Points

 Hotels and Motels.

 Convenience Stores.

 Shopping Centers.

 Restaurants. Bars and Pubs.

 Banks.

 Commercial Areas.

 Residential localities.

 Major Petrol Pumps.

 Airports

 Near Railway Stations, etc.

62
 FEATURES OF ATM

 Cash withdrawal

Normally allowing up to Rs.25000/- per day from Customers’ account (50,000/- for
HNI's)

 Balance Enquiry

Know our ledger balance and available balance.

 Mini Statement

Get a printout of our last 8-10 transaction on our Current Account.

 Deposit Cash/ Cheque

Avails at all full function ATMs customer can deposit both cash and cheques. Cash
deposited in ATMs will be credited to the account on the same day (providing cash in
deposited before the clearing) and cheques are sent for clearing on the next working day.

 Fund Transfer

Transfers funds form one account to another linked account in the same branch and in
different bank account.

 PIN Change

Change the Personal Identification Number of ATM.

 Payments

The latest feature of ATMs is used for payment of bills, making donations to temples/
trusts, buying internet packs, airtime recharges for prepaid mobile phones, and much
more.

 Others

Request for a cheque book from ATMs and our concerned branch will dispatch in such
that it reaches you within 10 working days.

63
 ATM SERVICES

In the current day and time, everyone is getting accustomed to using plastic money, i.e. Debit
or Credit Cards. With Debit Cards, you can have greater ease of transactions and
accessibility. They are connected directly to your savings account, which means that you can
directly use your card to pay online or at the store. So, it is advisable to get a Debit Card, if
you don’t have one already. If you are a novice to the world of plastic money, fret not. You
can always apply for a Debit Card in a matter of minutes.

 Automated teller machines are electronic banking outlets that allow people to
complete transactions without the help of a bank representative or teller.
 ATM transactions can be as simple as a deposit or balance inquiry, or more complex
like a balance transfer or bill payment.
 To use an ATM, consumers need to have a debit or credit card, and a personal
identification number.

1. Mobile Prepaid Card Recharge

Use your ATM Card at any of the Bank availing this service: we can purchase mobile re-
charge cards.

2. Internet Packs (ATN - Any Time Net)

We can purchase new internet connection or buy or renewal packs by bank ATMs.

3. Donations (Anytime Blessing)

Offers Donations and ask for a Monorath / Rajbhog to be done.

4. Mutual Funds Transactions

Buy or Sell Mutual Funds through Various Bank ATMs.

5. Bill Payments

Pay your day-to-day bills through Banks ATMs and enjoy the convenience of Banking.

6. Flexi Top up

64
 All Bank Debit / ATM Cardholders can now refill their prepaid phone cards through
their bank ATMs or through SMS. This facility is available for all circles of the following
operators:

a) Hutch/ Orange

b) Airtel

c) Idea.

7. Charity

Through this facility we can donate for charity against any of the following heads:

a) Child Welfare.

b) Education.

c) Health & Sanitation.

d) Livelihoods & Poverty.

e) Service for the disabled.

8. Calling Cards

Calling cards enable a user to make a call either through the normal phone or through the
Internet protocol. There are two kinds of cards available.

a) India on All Cards

b) Hello World Cards.

65
 INDIA’s FIRST BIO- ATM FROM AXIS BANK

Automated teller machine for banks and financial institutions which leverages
sophisticated biometric technology to allow secure ATM transactions. This is the first
time that any Indian company has developed such an ATM machine. The Bio ATM
provides alternative to the regular card and pin based ATM transaction systems. In order
to access accounts users need to give their biometric to the machine that will verify and
authenticate it with the biometric records available in the database. The machine uses
fingerprints for the verification purpose and hence customers will need to register their
fingerprint with the bank.

The trick, they say, is technology. In a A Pune based technology company has developed
Bio-ATM, a biometric based country where most potential savers make less than $100 a
month, the banks have mastered ways of attracting small customers, even when they hold
accounts with a minimum balance of $100. Setting up a national network of full-fledged
branches was too expensive, so the banks expanded using atms, phone banking and the
Interest to reach new customers inexpensively.

“The challenge is that the transaction sizes are very small by international standards”,
says Neeraj Swaroop, country head of retail banking at HDFC in Bombay. “We were able
to do it in an economically viable manner by investing in the right kind of technology”.

Thanks to affordable technologies, the most advanced banks in India say more than 70%
of transactions are done outside branches- They are aggressively targeting the customer
like never before," says gurunathmudlapur head of research at Khandwala Securities in
Bombay. "They are using a lot of innovation for the Indian context."

66
 9 USEFUL SERVCES PROVIDED BY ATM’s

1. Open or withdraw a fixed deposit

You can open a fixed deposit with your bank using an ATM.
Select ‘Open Fixed Deposit’ on the ATM
Menu, select the duration, enter the amount and confirm the other necessary detail

2. Recharge your mobile

Prepaid services of most mobile operators can be recharged from an ATM.

You can also recharge mobile phones of friends or family members in the same manner.
Select 'Mobile Recharge', enter your mobile number and re-confirm, then enter the recharge

3. Pay income tax

Some banks offer the convenience of paying income tax using atms. This includes advance
tax, self-assessment tax as well as tax due after regular assessment.
You need to register for the facility on the bank's website or branch first.
Once the amount is deducted from your account, the ATM will generate a unique number
(CIN). You can visit the bank website after 24 hours and print the challan using the CIN.

4. Deposit cash

Many banks have installed cash deposit machines in ATM kiosks.

One can deposit up to Rs 49,900 per transaction.
Denominations of Rs 100, Rs 500 and Rs 1,000 are accepted.

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 5. Pay insurance premium

Insurers like LIC, HDFC Life and SBI Life have tied up with banks to facilitate premium
payment through atms. Just keep the policy number handy.
Go to 'Bill Pay', select insurer, enter policy number and date of birth or mobile number, then
enter premium amount and confirm.

6. Apply for personal loan

To avail of small ticket personal loans, you don’t need to approach a bank branch or speak to
a phone banking executive. Some private sector banks now offer pre-approved personal loans
for customers using atms as the point of disbursal.
The loan amount is decided using advanced analytics, which take into account the customer’s
transaction details, account balance, salary credits, and credit and debit card repayments.

7. Transfer cash

If you do not have access to Netbanking, funds can be transferred from your bank account to
that of another bank using an ATM.
You need to register the beneficiary account online or at bank branch.
Upto Rs 40,000 can be transferred to the beneficiary account in a day, with no limit on the
number of transactions.

8. Pay your bills

You can pay utility bills like your telephone bill, electricity bill, gas bill and others through
Atm’s.
You need to register the biller on the bank’s website before you can make the payments.

9. Book railway tickets

Public sector banks like SBI and Punjab National Bank, among others, offer the facility at
select locations on railway premises. As of now, only long distance reserved ticket issued
by this way.

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 FREQUENCY OF ATM IN INDIA

In terms of the number of ATMs deployed, India is next only to China, recording a strong
compound annual growth rate of 14 per cent in the period between 2012 and 2017.

New Delhi: The number of ATMs in India dropped to 2,21,703 as on March 31,

2019 from 2,22,300 at the end of 2017, recording a decrease of 597 ATMs during the
period, according to a report released by the Reserve Bank of India.

India also has one of the lowest ratios of ATM cash withdrawal relative to cash in circulation,
revealed the report titled "Benchmarking India's Payment Systems".
"It is also an indicator of low efficiency in recycling cash, i.e., the cycle of withdrawing cash,
making payments with it and in turn making deposits through the banking system," said the
report.

However, in terms of the number of ATMs deployed, India is next only to China, recording a
strong compound annual growth rate of 14 per cent in the period between 2012 and 2017.

The analysis, however, revealed that although India has made progress with reference to the
absolute number of ATMs deployed, the rate of deployment is still relatively low when the
size of the population is taken into consideration.

"All countries in the benchmarked group have a better deployment rate. The silver lining,
however, is that the availability has doubled over the six-year period between 2012 and 2017
with dependency reducing from 10,832 persons per ATM in 2012 to 5,919 persons per ATM
in 2017," the study revealed.
The report provides a comparative position of the payment system ecosystem in India relative
to comparable payment systems and usage trends in other major countries.

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Number of ATMs in India reduces, transactions continue to grow.

Locating an ATM might get tougher in the near future as the number of automatic teller
machines have gradually shrunk in the past two years. This is not because dependency on
cash has waned; on the contrary there has been an increase in transactions, as shown in
figures released by the Reserve Bank of India (RBI). Tighter regulations are making
maintenance of ATM quite a costly affair.  
However, the drop in ATMs might continue as these machine operators are struggling to deal
with the software and equipment upgrades costs. These hardware and software upgrades for
security purposes were mandated by the central bank last year. Confederation of ATM
Industry (CATMi) had estimated last year that almost 1,13,000 ATMs in the country could be
shut in the first couple of months in 2019. CATMi also predicted that adhering to the
upgradation rules could cost the ATM industry roughly Rs 3,000 crore.
India already has the fewest ATMs for every 1,00,000 people among the BRICS nations.
ATM operators remain in a fix as the fees they rely on remain low and cannot see an uptick
without the approval of an industry committee. Operators charge an interchange fee of Rs 15
to the lender whose debit or credit card is being used by an individual for cash withdrawals.
According to former RBI deputy governor, "Interchange fees are the biggest factor behind
muted growth of ATMs. They have to reflect ground reality. Banks are finding it cheaper to
pay interchange fees to other banks rather than operating their own ATMs," as mentioned in a
report in Bloomberg.
However, not every expert believes that interchange fee is the biggest factor as the operators
can pass the higher charges on to the customers.
Branch rationalisation by some public-sector lenders could be another factor behind the drop
in ATMs. SBI alone cut 1,000 outlets in the first half of fiscal 2018.
The decline in the number of ATMs is crucial because the Modi-led BJP government added
355 million to the banking system since 2014. Many opened accounts when the PM declared
86% of all banknotes illegal in 2016.
The reducing number of ATMs might be a boost to mobile banking, which is already growing
in a rapid pace in the country. According to the Bloomberg report, number of mobile banking
transactions grew 65 times in the past five years.

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 NEW DEVELOPMENT OF ATMS’s

1. ATM without PIN –Recently DCB Bank has started an Aadhar card based ATM at
Mumbai where the customers can transact without using PIN. Their biometric details
instead of the PIN is used for authentication. The customers are required to identify
themselves by putting their finger on the scanner which is better as PIN can be lost or
forgotten.
2. ATM for visually challenged –Special ATM machines with a voice guided system
and specially made function- display keys for visually challenged people has already
been introduced by ICICI bank. Such ATMs are equipped with Video Surveillance
devices.
3. ATM on wheels –The ICICI bank has started 'ATM on wheels' service which is
connected to the central data base of the bank through the GPRS technology (General
Packet Radio Service). The movement of the Mobile ATM is tracked using the Global
Positioning System (GPS) and is monitored by the 24 hour ICICI Bank ATM help
desk.
4. Video interaction – Some of the ATMs provide customers an option of video
interaction with bank officials.
5. Online alarm - Some of the ATMs of SBI, HDFC Bank and Axis Bank have installed
online alarm system. In such cases alarm is set off as soon as the ATM senses a
hammer or drilling or attempts to break open the ATM.
6. Choose notes - IndusInd Bank gives customer a choice on which denomination of
note they need from ATM.
7. Withdraw cash using mobile - ICICI Bank provides customers an option to
withdraw cash from ATM without using their ATM card but with the help of their
mobile.

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 Important facts about ATMs

Some of the important important facts about the ATMs are as follows -

1. Generally cards issued by banks can be used at any bank ATM within India in case so
enabled.
2. In case PIN is forgotten or the card is sucked in ATM, the card issuing bank branch
should be contacted immediately.
3. In case the card is lost or stolen, the card issuing bank branch should be contacted
immediately for blocking the card.
4. The card issuing banks set limit for cash withdrawal by customers which is normally
displayed at the respective ATM locations.
5. A limit of Rs. 20,000 per transaction is fixed for cash withdrawals at other bank
ATMs.
6. Five free transactions are permitted per month at other bank ATMs for savings bank
account holders.
7. In case the cash is not disbursed though the account gets debited for the amount, a
complaint should be lodged with the the card issuing bank branch immediately.
8. On raising a request through ATMs, cheque books are processed and sent at the
address registered with bank.

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 PRECAUTIONS TO BE TAKEN

 PIN should be changed after first usage and periodically after that.
 The customer should conduct ATM transactions in complete privacy by hiding
keypad with one hand while keying in the PIN
 Don't throw your transactions slip in ATM room.
 Do not take help of strangers at ATM.
 Block and destroy old card by cutting it into pieces, after getting a new card.
 Be careful about strangers entering the ATM room while doing your transaction,
 Insist on swiping your card in your presence at hotels/shops/malls etc.
 In case any attachments or unusual devices connected to the ATM is noticed, don't
perform transactions.
 Check your account balance periodically.
 Don't share ATM card and PIN details with anyone.
 Never choose a PIN based on date/year of birthday of self, spouse, children or
telephone number etc. which can be easily guessed.
 Never leave card in the ATM.
 Don't respond to any vishing or phishing mails regarding ATM card or PIN.
 White label ATMs ATMs set up, owned and operated by non-banks are called White
Label ATMs. Non-bank ATM operators are authorized by the Reserve Bank of India
under Payment & Settlement Systems Act, 2007.
 In white label ATMs, scenario, logo displayed on ATM machine in ATM premises
pertain to WLA operator instead of a bank.

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 ATM TRANSACTION CHARGES IN INDIA
ATM transactions attract charges, once you exceed the ATM transaction limit charges
are applicable. Get a detailed overview of ATM transaction charges & how to avoid debit
card transaction charges. Click here to get breakup of the fees imposed by major banks in
India.
With the advent of ATMs, it has become really easy to withdraw or deposit cash. Long gone
are the days of standing in serpentine queues. ATM transactions attract charges. A cardholder
is also liable to pay other charges for holding a debit card. Let’s understand the ATM
transaction charges in greater details.

New ATM Transaction Charges

In August 2014, the Reserve Bank of India rolled out a new policy in which it revised the
number of free ATM transactions offered by banks. The new policy provided that banks have
to provide a certain number of free-of-cost ATM transactions per month to their customers.
Under the revised policy, a customer is allowed eight free ATM transactions in a month. Of
these, five are at the ATM of the bank which has issued the card. Three free transactions are
permitted when the debit card is used at the ATM of other banks. The free transactions
include both financial (cash payment and withdrawal) and non-financial transactions (balance
enquiry, mini statement, changing ATM PIN, booking a fixed deposit etc.)

Once the customer surpasses the ATM transaction limit, he is charged a nominal fee per
transaction. Banks charge ₹ 20 for financial transactions and ₹8.5 for non financial
transactions. These are the maximum amounts that can be charged by a bank. Charges are
also levied for ATM transactions for PIN regeneration.

In June 2019, Reserve Bank of India announced in its monetary policy that a committee
involving all stakeholders, under the chairmanship of the Chief Executive Officer, Indian
Banks' Association (IBA), to examine the entire gamut of ATM charges and fees.  It is
expected that when this report is submitted, RBI will issue guidelines to further streamline
the process of charges applicable for ATM transactions.

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 RATIO OF ATM’s IN INDIA
The maximum growth of ATMs is happening in Asia pacifi c region. India and
Indonesia are having one fouth of the number of ATMs, and china is accounted for half of
the New ATMs. Worldwide growth of ATMs is steadily increasing (Fig. 1). The growth of
ATMs in Western countries and other advanced countries has reached at a mature stage.
However; there is a lot of scope of growth of ATM industry in developing countries like
India. In India, ATM industry is growing at an exponential rate. So to say, ATM has brought
a self service revolution. ATMs were introduced to the Indian banking industry during 1987
by HSBC Bank in Mumbai. Mr Jaivinder Gill, MD of NCR India has stated, “As banks
continue to open new branches, attract new customers, and encourage existing and new
account holders to use cards, the Indian ATM industry is set to grow. Since many banks still
operate proprietary networks, the increasing number of banking customers is likely to spur
ATM growth.”ATM technology was used to reach the customers at a lower initial and
transaction cost with hassle free services. As per an interaction with senior general managers
(South Asia channel partners and strategic alliance), ATM segment witnessed a growth rate
of 30% since last 5 years in India.

THE ATM MARKET IN INDIA

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India ATM management services market is at a developing stage. The ATM Managed
Services Market is moderately fragmented among top 6-7 players which constituted 60-70%
of the revenue share though there are number of smaller players existing in the market. These
small players have usually positioned themselves into few of ATM service category.

Assessment of India ATM Managed Services Market: Indian government during August,
2014 has initiated the scheme of opening up of bank account at zero balance under
PradhanMantri Jan DhanYojana (PMJDY). This led to expansion in the number of
transactions performed in an ATM as debit card users in India increased significantly.

RBI passed the law to increase the penetration of ATMs in rural areas of India to meet the
desired aim of financial inclusion which further supported the growth of ATM managed
service market. Over the span of last five years, the number of ATMs installed has increased
positively at a double digit growth rate during the period FY' 2013 to FY' 2018. As of 31st
March 2018, Over 80% of the ATMs are being outsourced by the banks as Banks observed
that outsourcing an off-site ATM is much more cost effective instead of managing them by
the banks.

Trends and Developments

 Increasing Number of ATM's

 Introduction of Solar ATM's
 Introduction of Biometric ATM's
 Increasing Penetration of White Label ATM's in Rural Areas
 Growth in Branchless Banking
 Higher Number of Outdated ATM's
 Government Efforts to Increase Deployment of Cash Recyclers

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Issues and Challenges

 Power Cuts and Deficit

 Pressure on Profit Margins
 Decline in Number of Free Transactions at ATM's
 Low Interchange

Threats

Attacks against automated teller machines (ATMs) are nothing new, for obvious reasons.
They are a perfect target for both conventional thieves and hackers, standing at the
intersection of physical theft and cyber crime. Particularly in the developing world, ATMs
often lack basic cybersecurity precautions, with archaic operating systems and minimal
authentication requirements within the machines. The past few years have seen criminals
applying their creativity to stealing money from ATMs, with considerable success. Methods
of attack have included:

• Insert skimmers—physical devices placed in card slots to capture information from swiped
cards.

• Remote cyber attacks—taking control of ATM servers to dispense cash, using malware
like ATMitch.

• Direct malware attacks—using physical access to an ATM to deploy malware variants like
Ploutus-D.

77
CONCLUSION

78
 CONCLUSION

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

Thus the ATM’s i.e. any time money machine has fulfilled the customer’s needs to its
greatest extent. In the near future the banks have also promised to come up with new
innovations in the ATM’s.

79
ANEXTURE

QUESTIONNAIRE
80
NAME…………… OCCUPATION……………..

AGE…………….

1. How did you come to know about ATMs?

a) Television
b) Magazines
c) News papers
d) At your bank
e) Others specify

2. Which ATM cards do you own?

a) Indian bank
b) SBI
c) ICICI
d) UTI

3. What factors necessarily made you to opt for ATM card from this bank only?
a) Services
b) Security
c) Locality
d) More withdrawal facility

4. Whether ATM facility available as per your requirement?

a) In terms of time yes/no
b) In terms of location yes/no

5. When do you required ATM mostly?

a) Before office hours/06am to 10am
b) During office hours/10am to 5pm
c) After office hours/5pm to 8pm
d) After office hours /8pm to 10pm
6. How often you use the card?
a) 5to10 times a months
81
 b) 10to20 times a months
c) 20to50 times a months
d) Occasionaly
e) Never

7. How do you terms it for your usage?

a) Withdrawal
b) Accessibility
c) Emergency
d) For fashion

8. You are satisfied with service provided by ATM?

a) Yes
b) No

9. Whether the withdrawal limited dprescribed in ATM is sufficient?

a) Yes
b) No

10. Are you satisfied with cost of this service?

1) Yes
2) No

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 BIBLIOGRAPHY
 Books:-

New concepts of banking

By – S.S. Kaptan

Virtual banking revolution

By – James Essinger

Banking law and practices

By – P.N. Varshney

 www.wkipedia.com
 www.investopedia.com
 www.hdfc.com
 www.google.com
 www.idbi.com
 www.sbi.com

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