A research paper on

Topic: consumer perspective towards change in the ATM charges of

bank

Theme: leading changes: transformational possibilities and challenges

in commerce management and technology
Author: Co-Author:

Name: Ashwini A. kale Name: Suman K. Baikadi

Mobile No: 9766168602 Mobile No: 9136869202

College: Chetana H.S. College Of Comm. College: Chetana H.S. College Of Comm.
& Eco, Self financing course. & Eco, Self financing course.

Email Id: kaleashwini244@gmail.com Email Id: sumanbaikadi255@gmail.com

Abstract:

All banks Automated Teller Machine (ATMs) creating ATM banking the second most in
style bank. Bank managers ought to grasp the key option of ATM banking whose performance
greatly influencer customer‟s satisfaction. 353 ATM card users rated the performance of ATM
banking. The 12 key attributes are: ATM fees charged, ATM order, cleanliness of ATMs, ATM
stations, accuracy of ATM, ease of ATMs, legible slips, convenient location, worker
accessibility to solve ATM issues, privacy ATM station, worker determination ATM problem,
and money convenience in ATMs. it‟s vital that customer desire ATMs as a result of whereas
most customer can still read the ATM as a automated teller, several can expect increasingly
bigger convenience, personalized expertise, and information security. Customers square
measures glad with correctness of their account ATM group action however least glad with
charge and waiting group action. Queues square measures currently regular around ATMs put in
with bank premises. This suggests that bank might begin finding ways that to decongest however
additionally ATMs stand around banks. This suggest that banks begin finding ways that to
decongest however additionally ATMs stand around banks. This will be achieved through the
installation of off-bank premises ATM. Aggressive installation and preparation of ATMs is one
in every of the foremost post-consolidation exercise within the industry. At intervals this era, the
e-banking area recorded important advancement against all odds.

Keywords: ATM securities, consumer perspective, ATM charges

Introduction:
 An automated teller machine (ATM) is an electronic device that enables customers to
perform financial transaction, such as cash withdrawals, deposits, funds transfer, balance
inquiries or account information inquiries, etc .In united states it is also known as ATMs. In
Canada, it is also known as automated banking machine (ABM). In other terms it includes any
time money, cash line, time machine, cash dispenser, cash corner, banc mat, or banc mat. The
ATMs which is not used for financial institution are known is “white-label” ATMs. ATMs can
also be used to withdraw cash in foreign country. ATM is different from the bank account is
denominated. The money will be converted into the financial exchange rate. The ATMs has
increased the transaction rate from 20rs to 21rs. Only one 1rs has increased for per transition.
ATM is a plastic card. The pin must match with the PIN stored in the chip on the card. There are
3.5 million ATMs installed worldwide. The use of ATMs is declining with the increase in
cashless payment system

Objectives:

The main objectives of the study are:

1. To study the impact of ATM charges of bank in customer.

2. To know the current ATM charges per transaction.

Methodology:

The data for the research paper has been collected with the basis of primary or secondary data.

 Primary data: In primary data we have questionnaire will be used on survey and it will
be distributed among different age group of people.
 Secondary data: secondary data will be collected with the help of various articles,
newspaper, reports and website

Review of literature:

Sangeeta ojha, in her paper” ATM cash withdrawal, debit card, credit card charges to increase
soon” published on 21st July 2021 explains about the charges that a bank can charge on the ATM
transaction of the merchants as well as she has mentioned the charges to be increased beyond the
transaction.

By sneha kulkarni the bank charges has raised from 1st January 2022. From 1st January the
ATM charges is rs 21 per transaction. The banks are only allowed to charge 20rs per transaction.
If they go in other ATM the three transaction are free in metro center and five in non- metro
center. 90 crore debit cards issued by different banks at end-march 2021. The first ATM was set
up in 1987 by HSBC in Mumbai. It has increased only 1rs plus GST. Customers are capable for
five free transaction for their own ATM. Only cash withdrawal transaction will be charge at
HDFC bank ATMs. In central bank the interchange fees per transaction is Rs 15 to Rs 17 for
financial transaction and Rs 5 to Rs 6 for non- financial transactions. Customer will have to pay
1rs more for their transaction. The bank has changed the rule for the ATM banks. Banks will
have to pay hundred times rent of the safe deposit locker.

Data analysis:

We have collected the data from 30 respondent of ATM customer to know the customer are used
in ATM after the implementing the new ATM charges and impact of customer

How Frequently do you use ATM machine

20%
Once in a month
36%
Twice in a month
Once in a Two month
17%
More than 2 times in 6 months

27%

Fig.1

According to the survey of fig.1 we can clearly see that there increasing ATM charges were
affecting the customer. (36.7%) customer use ATM machine once in month and (26.7%)
customer use ATM machine twice in month.

impact of increasing charges

10%
high
37% low
moderate

40% no impact

13%

Fig.2
According to the survey of fig.2 we can clearly see that there increasing ATM charges were
impact of the customer. (36.7%) customer have high impact and (40%) customer will not high or
nor low impact it‟s moderate

number of transaction

47% number of transaction

53% transaction amount

Fig.3

According to the fig.3 we can clearly see that the charges will applied for number of transaction
and transaction amount. (53.3%) customer are voted for number of transaction and (46.7%)
customer voted for number of transaction amount.

transaction should be kept free by banks

10%

40% 1-3 times

3-6 times
6-10 times
50%

Fig.4

According to the fig.4 we can clearly see that this transaction per month should be kept 1-3 times
is (40%) ,3-6 times is (50%) and 6-10 times is (10%).
 ATM services and it's charges

14%

27% strongly agree

agree
disagree
strongly disagree

58%

Fig.5

According to the fig.5 ATM charges and it‟s services is (56.7%) Agree, strongly Agree is
(13.3%), Disagree is (26.7%) and Strongly disagree is (3.3%).

technical problem faced by consumers

7%
10%
less than 10 times
10-20 times
20-40 times
83%

Fig.6

According to this fig.6 the problem they have faced is less than 10 times is (83.3%), 10-20 times
is (10%), 20-40 times is (6.7%) and over 40 times.

suggestion:
According to the data that we collected from 30 people, there are still many people that prefer
cash transaction and use ATM. Many people feel that they are going to face problems due to this
increase in charges and that is the reason they want to shift to UPI and other online transaction
which is actually a goo thing. But for country like India, still the penetration of internet and UPI
is not up to the mark. Some people, farmers are still largely dependent on cash transaction. So
according to me, government should rethink about this decision and change it keeping in mind
the majority of people. They can consider increasing the number of free transaction per month or
they can consider charging on the amount withdrawn per month.

Conclusion:

According to the data that I collected from 30 people, 90% people use ATM cards and are below
age 25. Out of these, nearly 80% people believe that the charges of ATM cash withdrawal are
too high and should be brought down. Also, they feel that the number of free transaction per
month should be increased. Also the per day transaction limits should be increased as they faced
many problem in emergency condition because of this rule. But due to this increase in charges
more people (nearly 65%) wants to shift to UPI payment and other online transaction options and
so this increase in charges can be a blessings in disguise. But still there are nearly 60% of the
people who prefer cash transaction and many small business owners are not willing to shift to
online transaction so government should rethink of this „ charges increase‟ decision.

Reference:

https://www.researchgate.net/publication/343112271_CUSTOMER_PERCEPTION_OF_BANK
_ATM_SERVICES_IN_NIGERIA

https://www.researchgate.net/publication/5027640_ATM_fees_Does_bank_size_matter

https://www.investopedia.com/terms/a/atm.asp