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Project Report On

A DETAIL STUDY OF ATM

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

xxxxxxxxx

Under the Guidance of


Asst. Prof.

“ST. JOHN COLLEGE OF HUMANITIES AND SCIENCES”


VEVOOR, MANOR ROAD, PALGHAR (E) 401404, DIST.
PALGHAR

February 2021
INDEX
Chapter No. Title Page No.

1 Introduction 1 to

2 Research Methodology

3 Literature Review

4 Data Analysis, Interpretation


and Presentation

Findings

Conclusions

Recommendation
Suggestions
Bibliography

Annexure
CONTENTS

Chapter1. INTRODUCTION

1.1 History

1.2 Objective

1.3 Futures

1.4 Advantages

1.5 Limitations

1.6 Functions

1.7 Types of ATM

1.8 Parts of ATM

1.9 Scop of AT

1.10 Cards Of ATM

1.11 How use of ATM

1.12 Cards Network


Chapter 2 .Research & Methodology

Chapter3. Literature Review

Chapter4. Data analysis & Enterpretation

Findings

Conclusion

Recommendation & Suggestion

Bibilography Annexure
CERTIFICATE
This is to certify that MR. PRITESH BANDU PATIL. As worked
and duly completed his Project Work for the degree of
BACHELOR IN COMMERCE (ACCOUNTING AND
FINANCE) under the Faculty of Commerce in the subject Project
Work her project is entitled, “A Details Study of ATM ’’ under my
supervision.
I further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted
previously for any Degree of Diploma of any University.
It is his own work and facts reported by his personal findings and
investigations.

Asst. Prof. Manali Churi


(Internal Examiner) (External Examiner)

Asst. Prof Pooja Shetty Dr. Brajabandhu Das


(coordinator) (Principal)
DECLARATION
I the undersigned Mr. PRITESH BANDU PATIL, hereby declare
that I have completed the Project on “A DETAILS STUDY OF
ATM” forms my own contribution to the research work carried
out under the guidance of Asst. Prof. Manali Churi 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 works 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.

PRITESH BANDU PATIL

Certified by
Asst. Prof. Manali Churi.
ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so


numerous and the depth is so enormous.
I would like to acknowledge 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. Brajabandhu Das for
providing the necessary facilities required for completion of this
project.
I take this opportunity to thank our Coordinator, Asst. Prof. Pooja
Shetty for moral support and guidance.
I would also like to express my sincere gratitude towards my
project guide Asst. Prof. Manali Churi whose guidance and care
made the project successful.
I would like to thank my College Library, for having provided
various references books and magazines related to 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.
chapter1 .INTRODUCTION

An automated teller machine (ATM) is an electronic telecommunications device that


enables customers of financial institutions to perform financial transactions, such as cash
withdrawals, deposits, funds transfers, or account information inquiries, at any time and
without the need for direct interaction with bank staff.
ATMs are known by a variety of names, including automatic teller machine (ATM) in the
United States. (Sometimes redundant as "ATM machine"). In Canada, the term automated
banking machine (ABM) is used, although ATM is also very commonly used in Canada,
with many Canadian organizations using ATM over ABM. In British English, the terms
cashpoint, cash machine and hole in the wall are most widely used. Other terms include
any time money, cashline, nibank, tyme machine, cash dispenser, cash corner, bankomat,
or bancomat. Many ATMs have a sign above them indicating the name of the bank or
organisation that owns the ATM, and possibly including the networks to which it can
connect. ATMs that are not operated by a financial institution are known as "white-label"
ATMs.
Using an ATM, customers can access their bank deposit or credit accounts in order to
make a variety of financial transactions, most notably cash withdrawals and balance
checking, as well as transferring credit to and from mobile phones. ATMs can also be
used to withdraw cash in a foreign country. If the currency being withdrawn from the
ATM is different from that in which the bank account is denominated, the money will be
converted at the financial institution's exchange rate. Customers are typically identified
by inserting a plastic ATM card (or some other acceptable payment card) into the ATM,
with authentication being by the customer entering a personal identification number
(PIN), which must match the PIN stored in the chip on the card (if the card is so
equipped), or in the issuing financial institution's database.
According to the ATM Industry Association (ATMIA), as of 2015, there were close to 3.5
million ATMs installed worldwide.] However, the use of ATMs is gradually declining
with the increase in cashless payment systems.
An automated teller machine (ATM) or the automatic banking machine (ABM) is
computerized telecommunications device that provides the clients of a financial
institution withaccess to financial transactions in a public space without the need for a
cashier, human clerk or bank teller. On most modern ATMs, the customer is identified by
inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip that
contains unique card number andsome security information such as an expiration date.
Authentication is provided by the customerentering a personal identification number
(PIN) Using an ATM, customers can access their bank accounts:
1. To make cash withdrawals
2. Check their account balances
3. Exchange rate for foreign travelers.
If the currency being withdrawn from the ATM is different from that which the bank
account is denominated in (e.g.: Withdrawing Japanese Yen from a bank account
containing US Dollars), the money will be converted at a wholesale exchange rate. Thus,
ATMs often providethe best possible exchange rate for foreign travelers and are heavily
used for this purpose as well.
My childhood I used to think that ATM is nothing but Any Time Money. It took me 22
years to know that it’s Automated Teller Machine. Now a days everybody knows what an
ATM is and how useful it is. But for the sake of formality we shall start with the technical
definition of ATM. The Automated Teller Machine (ATM) is a machine which facilitates
basic banking activities viz, withdrawal of money, depositing money and checking of
one’s own balances etc. ATM does most of the functions of cashier in the bank. ATM is
operated by plastic card issued by the bank which is called as ATM Card, with its special
features. This plastic ATM Card is replacing cheque, personal attendance of the customer,
banking hours and bank holidays restriction and paper based verification.
Electronic banking i.e., computerization of banking operations in India has picked up
during the second half of 1990's. This has helped to introduce ATMs.
ATMs are established in important places by the authorized bank in cities and important
The Indian Railway gave a mandate to 10 leading banks to host ATMs at Railway
Stations Banks in India realized the need for ATM-interchange deals to keep their
overheads under check . Under ATM inter-change, customers of one bank are offered free
access to the other bank's ATM network.
MEANING:
It means" count" the machine counts the money before giving it to you. It does the same
job as that of the 'bank teller'. The 'world teller ‘comes from the old English ‘tellan’
meaning to' calculate' or 'count'. Over a period of times," tellan" acquired another
meaning -to narrate. This gave as the verb 'tell' .with the passage of time, the original
meaning( "to count") tell out of use and the second one (" to narrate") become the
principal meaning of the word.
'Teller' meaning 'count' survives in a limited number of terms: bank teller, ATM etc.
DEFINITION:
An automated teller machine & automatic teller machine also know as automated
Banking (ATM) cash machine cash line or colloquially hole in the well is as electronic
telecommunication device that enables the customer of financial institutions to perfome
financial transactions.
ATM were first used in London in 1967, and after 50 years these machines can be found
nationwide
ATMs can be on promise on premise. ATM is located in financial institutions. Clients
enjoy more choice, convenience and availability while bank can boost their revenue from
transaction, lessen operational cost and maximize staff resources Off premise ATMs are
typically found in places such airport, grocery and convenience stores and shopping
centers where there is a simple need for cash.
SWOT OF ATM:
 STRENGTH:
Find the positives. Analyse your organization and make a note of everything that you do
well. Scour your records for examples of profitable periods and lucrative areas of your
business and try to discern what makes them successful Assess your organization from
the standpoint of a potential customer. Try to gauge what aspects of your company they
would value highly and what would make them choose it over the competition. If you can
pinpoint the traits that would influence a customer’s decision to choose your business
over others, you’ll be able to identify your strongest attributes easily. A business’s
strengths can lie in many different areas, ranging from organizational structure to end
product. Often, a
company’s biggest advantage is its unique selling point. Why is your operation or product
different to other options on the market?
 On demand and timing saving Access of service.
 Multiple service delivery channels.
 Uniform cost effective and self management service.
 Better optimum use for resources.
 Transparency in system.
 Feedback to the government of designing and development of new policy.
 Standardised Working procedures.
 Easy collection of distribution of fund.
 To Gain competitive Edge in the market.
 WEAKNESSES:
Reasons would they have for choosing a competitor’s services over your own? Review
the practices of other businesses and contrast their successes to yours. If they are growing
at a faster rate or attracting a having already defined your biggest strengths, compiling a
list of weaknesses should be relatively easy. Most aspects of your enterprise that aren’t
clear strengths could justifiably be described as weaknesses upon which you could
potentially improve. Review your business practices and figures for the last year or two
and highlight any areas that haven’t performed as well as you would like.
It is again beneficial to approach your analysis from the viewpoint of a potential
customer.
 Missing of personal human touch.
 General customer confuses due to massive ability of ATM.
 Low Awareness levels among customers due to Digital dividend our society.
 Information managed by the computer the highly vunerable to virus time of risk.
 Availability of low potential customers to make efficient use of electronic banking
services
 OPPORTUNITIES:
With an extensive understanding of your business’s strengths and weakness, you will be
better placed to judge the potential of any opportunities that present themselves. When
reviewing legislative, technological or societal changes, consider how well your business
could adapt and exploit the situation by recognizing your strengths and weaknesses as
they pertain to the evolving entrepreneurial landscape.
Consider your strengths to judge how quickly you could capitalize on an opportunity
before committing time and resources to it. Likewise, consider your weaknesses when
gauging your ability to adapt to new scenarios. If you don’t think your business is
currently strong enough to fully exploit a situation, decide whether it makes more
financial sense to address your weaknesses straight away or to abandon the opportunity
altogether.
 To provide user friendly and convenient services.
 To provide value added service.
 Reduction in costs and gain efficiency & profibility.
 To provide Feedback to the government various social standard scheme.
 Integration of services Delivery channels on single platform.
 THREATS:
Threats to your business could manifest themselves as anything from rising costs to
decreasing demand or increased competition. Again, the research of your strengths and
weaknesses will play a vital role in your ability to gauge your adaptability and resilience
to change. Always be aware of threats to the health of your organization. When they
present themselves, assess the situation by applying your knowledge of the health of your
enterprise.
Threats can appear from many different sources, so it’s essential to make a concerted
effort to stay informed at all times. Stay abreast of relevant technological or political
changes by subscribing to industry-specific media and continually reviewing your
processes and policies. If you can identify a threat early, you will be more likely to
weather any storm it may bring.
 Shorter life & technology.
 Lack of Technical Export Staff.
 Operational Risks.
 Legal risk.
 Location risk.
 Information security risk.
SECURITIES OF ATM:
Automated teller machines (ATMs) are targets for fraud, robberies and other security
breaches. In the past, the main purpose of ATMs was to deliver cash in the form of
banknotes, and to debit a corresponding bank account. However, ATMs are becoming
more complicated, and they now serve numerous functions, thus becoming a high priority
target for robbers and hackers.
TD Financial Group spokeswoman Jacqueline Burns could not confirm if the ATMs were
through-the-wall or lobby terminals, but she did say both were located at bank branches.
The discovery highlights the critical role customer and employee education play in the
fight against fraud. "We have been working really hard to educate our customers and
employees," Burns says.
Mike Gravid, an investigator with the Calgary Police Service's Economic Crime Unit,
focusing on POS and ATM skimming crimes, says consumer education has been a focus
for financial institutions and law enforcement. "Skimming is prolific across Canada. The
TD Bank incident is not isolated," Gravid says. "But our PR efforts and getting the word
out to consumers is making a difference."
Scheduled and random physical checks of ATMs by branch staff and technicians;
 A detection system that senses and sends an alert -- and/or takes the ATM
offline -- when anything is attached to the card reader, keypad or fascia;
 Jitter technology, which uses a start-stop motion when a card is inserted;
 The use of software/behavioral analytics that recognize anomalous or out-
ofcharacter behavior for the cardholder or a terminal . "I call it 'collision'
analytics -- when two things occur at once that don't make sense," Wilhelm
says, such as a card being used at an ATM that the cardholder never or rarely
visits, or withdrawal amounts and transaction times that are not consistent
with the cardholder's patterns;
 Reliance on a jamming mechanism, which detects, via an electromagnetic
field, when a skimmer is placed on an ATM and "jams" or disables the
skimmer.
ATM MARKET: According to new report by Allied Market Research titled “Global
ATM Market – Size, Industry Analysis, Trends, Opportunities, Growth and Forecast,
2013
-2020,” the global ATM market will reach $21.9 billion by 2020, registering a CAGR of
7.6% during the forecast period 2014-2020.
The integration of wireless communicating devices (smart phones) with ATM machines
reduces ATM
Frauds that arise due to card skimming, a factor that prominently drives the adoption of s
which is consequentially spurring the global ATM market.
The North American region accounted for ~68,000 million of ATM transactions in 2013,
which clearly shows the widespread adoption of ATM services in the developed regions.
Unlike developed countries, the ATM market in Asia Pacific is in its developing phase.
China, for instance, has tripled its ATM installations from 130,000 in 2007 to 339,000 in
2011.
The diverse services and offerings in financial transactions are the major drivers for the
global ATM market. Thefts, online frauds, and network connectivity issues while using
mobile ATMs & smart ATMs, are some of the major threats to the growth of the ATM
market.
The growing use of solar powered ATM machines is reducing the cost of ATMs, leading
to minimal operational cost. According to the “Federal Reserve System”, ATM market in
developed countries such as US, UK, Canada and France has attained state of maturity,
while the “Reserve Bank of India” forecasts a rapid growth of ATM market in emerging
countries.
Deployment of ATMs at different locations such as Onsite, Offsite, Worksite and the
accessibility to Mobile ATMs have facilitated 24*7 availability of banking services to the
customers that creates an avenue for promotional activities to the banks concerned.
Brown label ATM, allows the banks to focus on their core business, as the hardware and
its lease is owned by third party vendors, and the cash management & network
connectivity is owned by the bank, eventually reducing the operational cost of the ATM’s.
The introduction of white label ATMs in the developing countries would propel the ATM
markets in the years ahead. As an example, the Independent ATM deployed (IAD) viz.;
Tata Communications Payment Solutions Limited has launched a white label ATM –
“Indi cash”, to provide better banking services to the customers. IADs in the North
American region account for more than 50% of ATMs Whereas, in Western Europe, Asia
Pacific, and
LAMEA, it accounts for about 12%. The widespread installation of ATMs around the
globe has led to a need for managed services. Therefore, different market players such as
NCR Corporation, Wincor Nixdorf, Fujitsu and Diebold Incorporation are capitalizing on
the prevailing market opportunities by offering managed services for ATMs.
 Global market for ATM deployment solutions is gaining momentum with offsite
ATMs to provide major growth during the forecast period (2014 – 2020
 label ATM Market will grow at a CAGR of 11.3% during the forecast period
 Smart ATMs would be an area of interest, as it is expected to grow at the fastest
pace during 2014 to 2020
 Asia-Pacific is the most lucrative market, both in terms of deployment and
revenue
 The emerging markets would largely contribute in terms of revenue towards the
growth of the global ATM market by 2020
ATM manufacturers and managed service providers are shifting towards White label
ATMs and Smart ATMs in order to provide secured ATM transactions and improve the
efficiency of the ATMs, resulting in faster transactions. In 2014, Fujitsu introduced a
Smart ATM in the European market, which facilitates operational efficiency.
NCR Corporation, one among the leading global ATM manufacturers, partnered with
ING -Diva in August 18, 2014, to provide enhanced security while performing financial
transactions. The companies profiled in the report are Diebold Incorporation, NCR
Corporation, Fujitsu, Wincor Nixdorf, Euro net Worldwide Incorporation, Triton Systems
of Delaware LLC, GRG Banking, Nautilus Hyosung, Hitachi Omron Terminal Solutions
and Hess Cash Systems.

1.1 HISTORY:
How automation changed retail banking, an Object Lesson Eyes glaze over when I
mention my interest in researching automated teller machines. Yet after I explain why I
think they're relevant, many people can easily recall personal anecdotes in which an ATM
plays a central role: a chance encounter with a long-lost friend while waiting in a queue,
or the fear of being robbed in an unfamiliar location, or the feeling of seeing an
insufficient funds notice displayed on the screen.
Most urbanites have interacted with the ubiquitous "cashpoint." Paul Volcker, of the U.S.
Federal Reserve fame, even considered it the "only useful innovation in banking."
Cashpoints appear frequently on TV and in printed news because, for most consumers,
they're one of the few points of contact with today's otherwise-ephemeral financial
services.
In spite of their cultural significance, ATMs recede into the noise of everyday memory.
Few stop to reflect on how they—and the computer infrastructure that supports them—
became the backbone of contemporary retail payments.
The cash dispenser was born almost 50 years ago, in 1967. For many, this was the first
tangible evidence that retail banking was changing; the introduction of the ATM marked
the dawn of contemporary digital banking. Several lay claim to the invention of the
cashpoint, including John Shepherd-Barron and James Good fellow in the U.K.; Don
Wetzel and Luther Simian in the U.S.; and even engineering companies like De La Rue,
Spite-Burroughs, Asea-Metior, and Omron Tate’s. But the ATM is a complex Technology.
There was no single eureka moment that marked its arrival.
The ATM finds its origins in the 1950s and 1960s, when self-service gas stations,
supermarkets, automated public-transportation ticketing, and candy dispensers were
popularized. The first cash machine seems to have been deployed in Japan in the
mid1960s, according to a Pacific Stars and Stripes account at the time, but little has been
published about it since. The most successful early deployments took place in Europe,
where bankers responded to increasing unionization and rising labor costs by soliciting
engineers to develop a solution for after-hours cash distribution. This resulted in three
independent efforts, each of which entered use in 1967: the Bank mat in Sweden, and the
Barclay cash and Chubb MD2 in the U.K. Never before had electronic equipment been so
exposed to the elements. Cashpoints materialized thanks to a long chain of innovations.
Some were of a general nature, such as steel, video-display units, plastic, magnetic tape,
or (more recently) the Windows operating system. Others were purpose-made, such as
the cash output mechanism and, in the 1960s, the previously non-existent algorithm that
associated an encrypted PIN with a customer account. These components were developed
through active collaboration between groups of bankers and engineers, each of which
attempted to solve different aspects of the complex challenges inherent in the
development of the ATM.
Never before had electronic equipment been so exposed to the elements. The necessity of
human intervention in early systems invited further automation. For instance, they could
easily jam or run out of product. They could erroneously dispense several bank notes
instead of just one—all without the owner's knowledge. They were activated by plastic or
paper tokens that would only activate for the operating bank and, in some cases, only that
particular bank location. Some banks would keep the token in the machine and return it
to the customer (by post) once the account had been debited. As a result, early ATMs
were standalone, clunky, unfriendly, and inflexible. They could do one thing: dispense
cash when activated by a token. Given these constraints, it's not surprising that it took
more than a decade for banks to deploy Cashpoints beyond a handful of experiments. In
its early days, few believed that the cashpoint would make a difference to the average
consumer. In context, this prediction might have seemed sure; Cashpoints appeared
before credit or debit cards were a popular alternative to bills and coins, at a moment in
time when most of the world's citizens worked in a cash economy. With the exception of
the U.S. and France, even personal checks were largely limited to the wealthy.
Updating central records from the point of a transaction is easy in today's world of mobile
banking and e-commerce, but the cashpoint was one of the first devices to use real-time
networking. Early in the ATM's development, creating a way to communicate with a
central computer (and therefore inform customers of their account balances) became an
overriding design concern. In cooperation with IBM, Swedish savings banks began
testing a networked cashpoint in 1968. Collaboration between IBM and Lloyd's Bank
followed, and that bank deployed several networked devices in the United Kingdom in
1973. But widespread online authorization still had a long way to go. Throughout the
1970s, IBM engineers developed the rails, pipes, and standards on which other elements
of the payments ecosystem (such as credit cards and point-of-sale terminals) would
eventually depend.
The ATM freed the average consumer from lengthy queues for services that had
previously been limited to bank hours. As devices spread, this convenience steadily
changed patterns of consumption, enabling unplanned weekend shopping and impromptu
dining. At the
same time, it allowed retail banks to grow their customer base by granting access to
consumers who'd previously been excluded from using a current account or a credit card.
The nature of work in bank branches also changed as employees relocated away from
teller services and into sales. High-margin services and products like car insurance, credit
cards, investment funds, and mortgages owe a debt to the outsourcing of ordinary
banking to ATMs. But when such sales opportunities failed to materialize, banks also
began to cut costs by reducing branch staff and closing down branches. This process
continues even today, with so-called "branch transformation" remaining a hot topic in the
industry. Bank regulators across the world have actively shaped ATM technology by
dictating who can own and operate them, monitoring the cost of withdrawals as well as
where they can be physically located. But the average person has also influenced ATMs:
the way they look, the way they work, and their role as a platform for today's plethora of
balance inquiries, deposits, transfers, and (in some European countries) airtime top ups
for pay-by-minute cell phones.
In 1971, a handful of years after the first machines appeared in England and Sweden,
manufacturers were operating in Britain (Spite-Burroughs), the U.S. (Docilely and
Diebold), and Japan (Omrom Tateisi). Together, they deployed cash machines in their
home countries and across Europe, Canada, Israel, Cyprus, and Latin America. However,
by the early 1980s, pioneers such as Chubb, De La Rue, Docilely, and Asea-Metior had
left the industry as each failed to keep up with developments in computing and
electronics. Other manufacturers, such as Burroughs, hadn't achieved their deployment
targets. Citibank abandoned plans to commercialize its proprietary CAT-1 and CAT-2
devices and, instead, continued to use them in its global, proprietary network until the
1990s.Not so with IBM, which had the marketing muscle, engineering expertise, and
business contacts to dominate the market? The company seemed poised to overwhelm its
competitors until executives decided to deploy a new model—the IBM 4732 family—
which were incompatible with previous models, including the already-successful and
widely deployed IBM 3624. Many banks evaluated the machine and refused to buy it
because, in a stroke, IBM had made the banks' significant capital investments in the older
computer infrastructure obsolete. This obsolescence extended beyond the physical
devices inside bank branches to the machines and software that supported communication
across the
bank's network and even to standards for shared cashpoint networks. IBM's move soured
banks, inadvertently, opening the ATM market to new cashpoint manufacturers.
Eventually, IBM abandoned payment-technology systems entirely.
Around this time, two Ohio-based companies, NCR and Diebold, were working on
That would enable them to dominate the supply of Cashpoints for the next two decades.
As a result of the IBM 4732 fiasco, NCR built its business on software that emulated the
IBM 3624. Meanwhile, IBM and Diebold formed a joint venture in 1984, called
Interfold. Its aim was to unite Diebold's self-service technology with IBM's global
distribution system. Seven years later, and in spite of growing sales, the joint venture
ended: Diebold hadn't achieved the international market breakthrough it'd hoped for and
IBM's returns fell short of its expectations, in part due to the growth in local processing
architectures, which had invalidated IBM's strategy to link ATMs to its expensive
mainframes.
NCR and Diebold were instrumental in turning the cash-dispenser dinosaur into today's
sleek, multi-function ATM. The companies' innovations included customer-friendly video
display units, programmable buttons alongside the screen, a shift toward dispensing cash
horizontally (which reduced jams), and expanded functionality, including money
transfers and balance inquiries. But NCR and Diebold were not alone. Growth in the
number of banks deploying ATMs across the world promoted an increase in the number
of manufacturers: Honeywell in the U.S.; Phillips, Olivetti, and Siemens-Nixdorf (today,
Wincor) in Europe; and Fujitsu, GRG, Hyosung, and Hitachi in Asia. Large European
banks also developed proprietary networks, numbering in the thousands of ATMs, which
U.S. banks favored shared networks (and their subsequent interconnection fees)
From its humble and uncertain beginning nearly 50 years ago, the ATM has become
pervasive. But it wasn't until the 1980s, more than 15 years after the machine's invention,
that the ATM's success was assured. Today, we're asked for our PINs in libraries, on the
Internet, and in every sort of retail store, for which debit cards have become the de facto
currency. The near-total global integration of ATM networks means that we can travel
almost anywhere in the world with just a piece of plastic in our pocket, confident that
we'll have access to cash in places as far afield as Hong Kong, Easter Island, Giza, Paris,
and even Antarctica. Some machines now act as Internet kiosks, while others display
advertising by third parties or allow users to purchase minutes for their mobile phones.
Yet
for all its digital innovations, the quick dispensing of physical cash remains the core,
transformative function of the ATM.
1.2 OBJECTIVE:

Objective: The project to be designed will control a simulated automated teller machine
(ATM) having a magnetic stripe reader for reading an ATM card, a customer console
(keyboard and display) for interaction with the customer, a slot for depositing envelopes,
a dispenser for cash (in multiples of $20), a printer for printing customer receipts, and a
keyoperated switch to allow an operator to start or stop the machine. The ATM will
communicate with the bank's computer over an appropriate communication link.
The objective of an ATM machine is to provide anytime of Automated banking service to
the bank customer without the customer having to make a trip to the bank .Some of the
service an ATM are

 Cash withdrawal
A objective of an ATM machine is to provide Anytime or Automated Banking services to
the bank customers without the customer having to make a trip to the bank. Some of the
services an ATM provides are:
A withdrawal can be carried out over a period of time in fixed or variable amounts or in
one lump sum and as a cash withdrawal or in-kind withdrawal. A cash withdrawal
requires converting the holdings of an account, plan, pension, or trust into cash, usually
through a sale, while an in-kind withdrawal simply involves taking possession of assets
without converting to cash.
Examples of Withdrawals
Some retirement accounts, known as IRAs, have special rules that govern the timing and
amounts of withdrawals. As an example, beneficiaries must start taking the required
minimum distribution (RMD), or withdrawal, from a traditional IRA by age 72.
Otherwise, the person who owns the account is assessed a penalty equal to 50% of the
RMD.

 Accept Deposit
First, if you have cash to deposit, then you can't do it with an app. And with checks, it
may take a bit longer for your funds to become available using mobile deposits compared
to
ATM deposits, depending on your bank's policies
A deposit account a savings account, current account or any other type of bank account
that allows money to be deposited and withdrawn by the account holder. These
transactions are recorded on the bank's books, and the resulting balance is recorded as a
liability for the bank and represents the amount owed by the bank to the customer. Some
banks may charge a fee for this service, while others may pay the customer interest on the
funds deposited.

 Issue balance statement


Some bank automatic teller machines (ATMs) offer the option to print a summarized
version of a bank statement, called a transaction history. Some institutions charge for
paper statements, while many online-only banks require digital delivery.
Bank statements had historically been printed on one or several pieces of paper and either
mailed directly to the account holder, or kept at the financial institution's local branch for
pick-up. In recent years there has been a shift towards paperless, electronic statements,
and most financial institutions offer direct download into account holders accounting
software. Some ATMs offer the possibility of printing, at any time, a condensed version
of a bank statement, commonly called a transaction history, or a transaction history may
be viewed on the financial institution's online banking software or available via telephone
banking. Transaction history may also be shared with other financial institutions when the
account holder gives permission through open banking to provide services .

 Money Transfer
At an Automated Teller Machine (ATM), you can only transfer funds between your
accounts linked to a single debit card or ATM card. You can't transfer funds between
unlinked bank accounts, between different banks, to a credit card, to another person's
account or to pay bills. Although all ATMs vary slightly, the general process is the same
for all ATM transfers.

 Buying insurance
Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a
potential loss to the insurance company in exchange for a fee, known as the premium.
Insurance companies invest the funds securely, so it can grow, and pay out when there's a
claim. Auto insurance is also a legal requirement.
1.3 FEATURES OF AUTOMATED TELLER MACHINES

THANKS TO TODAY’S advancements in technology, consumers are experiencing less


of a need to visit a bank branch and speak with a teller or banker in person. One banking
technology that has been the subject of multiple technological enhancements is the
automated teller machine (ATM). Here are some of the ATM improvements coming your
way:
Our ATMs (Automated Teller Machines) can help you with a number of basic
transactions. You can transfer funds, make a deposit (by cash or check), add funds to a
prepaid card, and make cash withdrawals and more. Here are a few common features of
our ATMs:
1. Balance Inquiry:
Need to know your current account balance? No problem, easily check by using an
Umpqua ATM .An account inquiry is a review of any type of financial account, whether
it be a depository account or credit account. The inquiry can refer to past records,
payments, and other specific transactions, or to any other entries relating to the account.
2. Deposit :
Quickly and easily deposit checks or cash using an Umpqua ATM.A deposit is a financial
term that means money held at a bank. A deposit is a transaction involving a transfer of
money to another party for safekeeping. However, a deposit can refer to a portion of
money used as security or collateral for the delivery of a good.
3. Withdraw cash:
Withdraw up to $500 daily in cash from any Umpqua ATM.A cash withdrawal requires
converting the holdings of an account, plan, pension, or trust into cash, usually through a
sale, while an in-kind withdrawal simply involves taking possession of assets without
converting to cash.
4. Fast Cash :
Use this convenient feature to withdraw a quick $40 from your Checking Account. Fast
Cash enables you to designate an amount that you consistently withdraw from your
primary checking account. This saves you time if you frequently withdraw the same
amount. Withdrawal allows you to enter the specific amount of funds you choose to
remove from your account.
5. Transfer fund:
Transfer funds between your Checking, Savings and even a Line of Credit if it's
associated with your deposit account .With traditional lending, you might need some
form of collateral to secure a loan. Even if you do not need to have assets in-hand,
finalizing a loan often takes more than 30 days. That's too much time when you have a
monthly bill that needs to be paid now. To get cash loans fast, you need a different type of
lender. LendUp offers cash loans with fast approval and transfer times, helping you get
the money you need when you need it.
6. Add funds to an everyday cash card :
Deposit cash at any Umpqua ATM that accepts deposits to add to your reloadable
Umpqua Everyday Cash Card.
7 .Set ATM preferences :
Umpqua customers can change the default language, fast cash withdrawal amounts and
receipt options if they select Set ATM Preferences.
When your customer selects the "My Preferences" button at your ATMs, a series of
screens guides them through the preference selection process allowing them to choose
their preferred: Language for all transactions (English or Spanish) Fast cash withdrawal
amount.
Fast cash primary account (checking or savings).
8 .More selections :
Umpqua customers can change their PIN and/or request a mini statement through the
More Selections option. Selection is the process of picking or choosing the right
candidate, who is most suitable for a vacant job position in an organization. ... Selection
is a process of identifying and hiring the applicants for filling the vacancies in an
organization.
9. Email receipt:
If you regularly visit ATMs, you are no stranger to receipt-littered ATM lobbies. Some
customers take the receipt simply for a quick look at their remaining balance, while
others simply expect a receipt as part of the ATM experience. After a brief glance, the
receipt ends up in the trash or worse—on the floor.
10. Banks have developed one solution to address this problem:

Citibank and Wells Fargo are two that let customers receive a digital ATM receipt via
email—eliminating the use of paper. For years, most ATMs only dispensed cash in the
form of $20 bills. In instances when exact change is needed, the ATM is not very useful.
However, banks are recognizing customers want more flexibility when it comes to their
cash withdrawals.
As such, Chase and PNC have started to roll out ATMs that are capable of spitting out $1
and $5 bills instead of just $20 bills. In addition to the convenience, being able to
withdraw cash in smaller denominations may also mean you won’t be taking out more
than you need.
12. Cardless ATM access:
Like our wallets and personal identification, our smartphones are always by our side.
More and more mobile phone manufacturers are building smartphones with near field
communication (NFC) technology, which lets your mobile phone communicate with
certain devices within close proximity.
SunTrust Bank plans to introduce such technology at their ATMs so customers can use
their NFC-enabled smartphones to access the ATM.
13. Make credit card or loans payments:
You can pay your credit card bill or mortgage through the mail, online banking or a bank
teller, yet you’ve never been able to perform this task through the ATM. It would
certainly be another level of convenience that would be much appreciated by many bank
customers.Fortunately, Bank of America plans to offer such capabilities in the near
future. As it seems to be a must-have feature among today’s consumers, other banks will
likely follow suit.
14. Live teller vidio conferencing:
The original concept of an ATM was to eliminate the need for a human teller to service a
customer. However, banks are making ATMs less automated by offering real-time video
conferencing with a live teller. Dollar Bank and Bank of America are among the financial
institutions that have begun to introduce upgraded ATMs with access to remote bank
associates.
1.4 ADVANTAGES OF AUTOMATED TELLER MACHINES

ATM stands for Automated teller machine and is a computerized system that enables the
customer to do financial transactions easily. It is an electronic banking outlet that enables
customers to perform financial transaction without the need of their bank branch
representative and teller. ATMs are a convenient and safe means of managing your fund
and doing financial transactions.
ATMs provide 24 hrs. a day and 7 days a week service to bank customers. These were
first introduced and used in India in the late 1980s. ATM cards are used by customers to
use and access their accounts through ATMs machines. ATM is a special type of plastic
card that contains user information in a magnetic strip. This magnetic strip consists of
identification code which helps in identification and authentication of user details with
centralized bank computer through a modem. There are different ATM cards available in
India viz. MasterCard, Maestro, Visa, Visa Electron and RuPay cards. Advantages and
Disadvantages of ATM are given below:
1. Provide Convenience to Customers:
Customers are able to do financial transactions conveniently with the use of ATMs. They
can avail various banking services and can do payments seating at their home comfort.
Various payments for online shopping, at restaurants and various other places payment
can be made using ATM. Nowadays ATM are installed at all important places like railway
station, airports, hospitals etc. which facilitate the people in withdrawing their money
whenever they want.
2. Offer 24×7 Service:
ATMs provide 24 hours a day, 7 days a week and 365 days a year to all its customers.
Unlike bank branches, it does not have any time schedule for its operations. Customers
can access their bank accounts and withdraw their money at any time of day or night as
per their convenience.
3. Reduce Banks Workload:
ATMs have an efficient role in reducing the workload of the banking industry. It has
relieved customers as they can avail various banking services by using ATM without
visiting the bank branches. Customers are not required to stand in long queues and fill up
various forms for availing basic withdrawal and deposit facilities. It helps in reducing the
work pressure on bank staff and provides flexibility to its operations.
4. Access to Bank Account from Anywhere:
Account can be accessed by customer using ATM from any part of the country or even
worldwide. ATM machines are installed in different parts of the country at all convenient
places. Customers don’t need to carry cash while travelling and they can easily withdraw
money any place they are travelling.
5. Minimizes Transactions Cost:
ATM has reduced the manpower need as all transactions are processed and monitored
using automated computerized systems. There is less human intervention in work
operations which reduce overall cost.
6. ATM reduces the workload of banks:
ATMs reduce the work pressure on bank’s staff and avoid queues in bank premises.
7. ATM provides service without any error:
ATMs provide service without error. The customer can obtain exact amount. There is no
human error as far as ATMs are concerned .An automated teller machine (ATM) is an
electronic telecommunications device that enables customers of financial institutions to
perform financial transactions, such as cash withdrawals, deposits, funds transfers, or
account information inquiries, at any time and without the need for direct interaction with
bank staff.
8. ATM is very beneficial for travellers:
They need not carry large amount of cash with them. They can withdraw cash from any
city or state, across the country and even from outside the country with the help of ATM.
Whether you need euros, shekels, pesos or pounds, making a withdrawal from an ATM is
generally the easiest and cheapest way to get cash abroad. The biggest advantage of
exchanging money with your ATM card is that all cash withdrawals, regardless of size,
are exchanged based on the wholesale exchange rate, which is usually reserved only for
very large interbank exchanges.
This rate is often significantly better than what you can get from exchanging money at a
local exchange counter. In addition, local banks or money change bureaus will add on
transaction fees, which can easily eat up another 2 percent of your money.
9. ATM may give customers new currency notes:
The customer also gets brand new currency notes from ATMs. In other words, for
customers, who get fake notes out of an ATM, usually there is no legal recourse as it
becomes very difficult for them to establish the source of the fake note Customers do not
get soiled notes from ATMs.
10. ATM provides privacy in banking transactions
Most of all, ATMs provide privacy in banking transactions of the customer.
Expansion of Services to any corner of the world:
Of the Banks can expand their services to any corner of the world by providing
electronic access to its customers.
12. For shopping Purpose:
Now a day’s almost every shopping mall, restaurant and other organizations are
accepting debit or credit card payment. Different online retailers have different policies;
but whether your ATM card is a credit card or a debit card (or, as is the case sometimes,
both), you should be able to use it for online purchases at most major websites. Prepaid
cards are more of a grey area -- your chances of them working depend on the exact type
of card you're using and if the card is registered to your name and address.
13. Pay utilities bills
With ATM, you can easily pay utility bills like Electricity bills, dstv or gotv etc. You
don’t really need to go their centers, on the ATM machine, key in the right codes and
you’re good to go.
Again this is another ATM advantage that have been taken over by mobile and internet
banking. I don’t think that there are still vast number of people that uses the ATM to
make bill payments.
The Best way is on your phone through mobile banking app or computer through internet
banking. But you can still use the ATM for bill payments in 2020.
14. Request for Statement of account:
One ATM advantages to the bank and its customers i love so much too. Instead of going
inside the bank, head to any ATM machine near to you and use it to request your
statement of account for the month. Banks seems to be removing this particular feature
from their
tam, though you can still use some banks ATM to request for your statement of account.
However, most financial institutions (banks) now made provision for their customers to
request for their statement of account through the bank mobile app or the internet
banking page
1.5 LIMITATIONS OF AUTOMATED TELLER MACHINES

Automated teller machines, or ATMs, are machines that function like bank tellers,
allowing customers to perform basic banking functions, such as making deposits, making
withdraws and shifting money between different accounts. In place of identification, bank
members use personalized debit cards to access their holdings. There are a number of
disadvantages to this machine

 Security:
Unlike bank tellers, ATMs do not require the person performing the transaction to present
picture identification. Rather, the person must only insert a bank card and enter a personal
identification number. If the bank card is stolen and the number ascertained, an
unauthorized person can easily access the account.

 Inability To Perform Complex Transactions:


ATMs can only perform relatively basic transactions. This means that people who need to
complete these longer transactions will be forced to use the teller, restricting use of the
ATM for people who need to complete simple business. In this sense, the ATM Is rather
like the express line in a supermarket--faster for some, but unavailable to others.

 Fees:
With the advent of ATMs came ATM fees. Not only do banks of which you are not a
member charge fees for the use of their ATMs, but users are often charged surreptitious
fees by their own banks for using other banks' ATMs--meaning the customer is docked
twice for the same transaction.

 Privacy:
Unlike banks, in which security guards and tellers are present to ensure the person
performing a transaction receives privacy, there is no such guarantee when using an
ATM. People may try to spy on users as delicate information appears on the screen,
without the user being aware.

 Difficulty of Use:
The performance of business at an ATM is generally quicker than that at a human teller.
However, the ATM is incapable of providing personalized instruction to the user in a way
that a human teller can. This can result in longer wait times if the user currently using the
machine is struggling to complete a transaction.

 Eating a Card:
Occasionally, ATMs will malfunction and swallow a user's ATM card. The customer will
then be directed to contact a service number or their bank and wait for a repair technician
to retrieve this card. While this happens only rarely, if it occurs on a weekend or at night,
the user may be left to wait for several days before they can again use their card,
something that would not happen with a human cashier.

 PIN Recollection:
To use your ATM securely, you need to memorize your PIN. If you forget your PIN, you
will not be able to use an ATM to make a withdrawal or a deposit into your account. If
you cannot recollect your PIN, the bank will not be able to retrieve it for you. In this
situation, it’s likely that your bank will cancel the current ATM card and issue a new card.
This process takes time, and the bank may charge a fee for the new ATM card.

 Fees Can Break You:


Many banks have a fee structure in place for customers who use the convenience of
ATMs. Typically, if you use ATMs inside your bank’s network, you do not incur a fee, but
if you use other ATMs outside your bank’s network, you encounter flat fees or fees based
on a percentage of the transaction. In some cases, your bank may limit the number of
transactions you can make within a month; if you exceed the limit, you incur fees.

 Limitation on Cash Withdrawal:


Bank imposes restrictions on withdrawal limit of their customers using ATM. There are
limitations on both no. of free transactions and the amount of money that can be
withdrawn per transactions. Banks set withdrawal amount limit for their customers. Most
of the banks do not allow withdrawal of more than 25,000 at a time.

 Non-Reachable in Rural Areas:


Banks in rural areas of our country have limited computerized branches and depend
mainly on manpower for its various operations. There are limited ATM machines
installed in rural areas which also do not operate properly. Therefore ATM services are
not properly available in rural areas
 Network Issues of ATM disadvantage:
Network issues are one ATM disadvantages we have, and it can be really annoying. For
example, going to the ATM to withdraw cash, getting there and inserting your card for it
to bring out the card stating “No Network”.
Not only that, you might even want to make an online payment or do money transfer
which requires the use of the ATM, if there’s an issue with the network, it will not go
through. Some countries see this daily and it can be very painful for the bank customer as
there’s nothing you can do order than to wait for it to be rectified.

 ATM disadvantages of the Dispense Error:


One major ATM disadvantages that is common especially here in Nigeria is the ATM
dispense error ATM dispense error is quite related to network issues but bit different,
though bit different. For those that might be confused on what ATM dispenses error is, it
is the process by which a bank customer goes to the ATM to withdraw cash, the ATM
didn’t dispense cash, but the bank customer is debited. For example, going to the ATM
machine to withdraw cash, after inserting your debit card and doing the required process,
the ATM read but won’t dispense cash to you. Within few seconds you will notice that
you’ve been debited. This is called ATM dispense error and the only way to resolve it is
by contacting your bank, and the money will be reversed to your account.

 . ATM Disadvantages of Robbery or Theft:


Have witnessed this on a bank in a remote area. The robbers came, shot at the security
man at the ATM and smashed open the machine, carting away lots of cash stuffed in the
automated teller machine.
In terms of robbery on the ATM , the bank won’t be liable for your loss if you have
already withdraw your cash, and robbers rob you the cash right at that very spot.

 . Operational Charges:
Another ATM disadvantages is operational charges. ATMs located in busy locations may
not have adequate funds for busy holiday weekends when large numbers of people are
taking out cash.
Most machines require envelopes to deposit checks and cash, and these may also be in
short supply, preventing customers from depositing funds. Damaged machines leave the
bank client with no alternative during non-banking hours.
 Fraud:
Criminals can fit skimming devices and small cameras to ATMs. These machines
record account details and personal identification numbers, which the crook uses
to withdraw money from those accounts. ATM skimming costs the U.S. banking
system around $1 billion each year, or $350,000 a day, according to the Secret
Service. In January 2012, Mike Urban, director of product management for
Fiserv's Financial Crimes division, told "Bank Info Security" ATM skimming had
reached "epidemic" levels and continued to grow.

1.6 FUNCTIONS:
We would love to show you the top functions & uses of the Automated Teller Machine
(ATM). However before that, let us consider a brief inquest into the meaning and origin
of the ATM. According to Investopedia.com, an automated teller machine (ATM) is an
electronic banking outlet, which allows customers to complete basic transactions without
the aid of a branch representative or teller. Anyone with a credit card or debit card can
access most ATMs.
It went further to state that “the first ATM appeared in London in 1967, and in less than
50 years, ATMs spread around the globe, securing a presence in every major country and
even tiny little island nations such as Kiribati and the Federated States of Micronesia”.
There is no major city and bank which does not have an ATM. So, apart from the
conventional cash withdrawal, what else are the top functions & uses of the Automated
Teller Machine (ATM) .
1. Planning of infrastructures and services.

 Planning of collective public transport infrastructures and programming of those


which have to be executed within a time horizon of ten years, defining their
characteristics, programming the investments, proposing the funding agreements
to be signed and the supervision of the corresponding projects to the effects of
verifying the fulfilment of the objectives of the planning process, and specifically
the drafting of the planning instruments for the coordination of the Metropolitan
Collective Public Transport System (SMTPC), including the Intermodal Transport
Plan, if appropriate.
 Drafting of the investment programmes for the pluriannual periods and consequent
proposal of the Infrastructure Funding Agreements to be signed between the AGE
and the Government of Catalonia, and also of the instruments which give
coverage to the execution of any other investments which may be carried out by
means of other formulas.
 Monitoring of the execution of investments in progress in the system provided for
in the programming instruments, whether executed charged to any Infrastructure
Funding Agreements signed by the AGE and the Government of Catalonia or
under other funding formulas.
 Planning of services and establishment of programmes of coordinated exploitation
for all the companies which provide them, and observation of the evolution of the
global travel market, with particular attention to the monitoring of the behaviour
of private transport.
2. Relations with collective transport operators.

 Conclusion, by delegation or jointly with the entities in charge of the services, of


contract programmes or other types of agreements with the provider companies of
public transport services within their territorial scope.
 Drafting of the contract programmes to be signed between the ATM and the
operators. Monitoring of the management agreements and contracts of all the
private and public companies of the Metropolitan Collective Public Transport
System.
 Monitoring of the evolution and fulfilment of the current contract programmes
with Transports Metropolitans de Barcelona and Ferrocarrils de la Generalitat de
Catalunya.
 Drafting of proposals of agreements with the RENFE company relating to the
integration of its Barcelona local train services into the Metropolitan Collective
Public Transport System.
3. Funding of the system by the administrations .

 Drafting of the proposals of funding agreements with the various public


administrations responsible for funding public transport, with definition of the
contributions of budget resources to the system.
 Conclusion of the funding agreements with the public administrations to subsidise
the deficit of the services and operating expenses of the management structure.
 Control of revenues, costs and investments of the service provider companies to
the effect of the provisions of the previous sections Organisation o f fares.
 Joint exercise of the powers of the administrations responsible for collective
transport over their own fares, including single dialogue of the system with the
economic administration.
 Drafting and approval of a common fare framework within a funding policy which
will define the degree of coverage of costs by fare revenues and the definition of
the integrated fare system, and also of the General Use Conditions of transport
tickets in all the systems, with powers in relation with transport tickets for their
suspension, retention and disqualification for future re-editions.
4. Proprietorship of the fare revenues for combined tickets and appropriate

distribution among the operators Communication.

 Dissemination of the corporate image of the Metropolitan Collective Public


Transport System and of the ATM itself with total respect for and compatibility
with those of the responsible entities and operators.
 Execution of communication campaigns with the aim of promoting the use of the
said system by the population.
 Publicity, information and relations with
5. Future regulatory framework.

 Study and drafting of proposals to present to the syndicated administrations,


individually or by way of the groups or bodies which represent them within the
ATM, of adaptation of the regulatory framework in order to enable the
consortium to exercise the attributions provided for within the framework of their
competences.
 Exercise of the administrative competences in regard to the organisation of any
services within their territorial scope which the signatory public administrations
of the Framework Agreement of 28 July 1995 and the syndicated entities may
decide to attribute to it.
 Establishment of relations with the other administrations with a view to better
fulfilment of the functions attributed to the ATM in accordance with its Articles
of Incorporation.
 Participation in international projects related with the ATM’s functions which may
provide improvements in know-how or management of the ATM’s own services.
6. Other mobility-related functions.

 Drafting, processing and evaluation of the mobility steering plans.


 Issuance of reports regarding the urban mobility plans, the services plans and the
mobility evaluation studies generated.
 Application and funding of measures for rational use of private vehicles, without
prejudice to the competences of the Autonomous Community and local
administrations.
 Drafting and funding of proposals for rational use of public thoroughfares and
spaces, in aspects such as parking, pedestrian areas or implantation of lanes
reserved for public transport or bicycles, without prejudice to the competences of
the Autonomous Community and local administrations.
 Promotion of the culture of sustainable mobility among the citizens.
 Any other function in mobility matters which may be attributed to it by the
current legislation.
7. Making a Deposit
Some banks allow customers to deposit cash and even checks at an ATM. Which ATMs
you can use to make deposits, and how much you're able to deposit at a time, can vary
from institution to institution.
Some ATMs will save photos of the checks you deposit so you can review them later
through online banking.
8. Credit Card Cash Advances
Many credit cards allow their customers to get cash advances through an ATM. There's
typically a fee for doing so, and you're usually charged interest as well, since you're
essentially borrowing the money from your credit card company. That means taking
money out of a checking or savings account is often a better option if you have the funds
available.
Fees and the amount you're able to borrow vary from credit card to credit card. As with
other withdrawals, the owner of the ATM might also charge you a fee.
9. Buying Postage Stamps
In addition to handling deposits and withdrawals, some ATMs also sell U.S. postage
stamps. This can be more convenient than buying them at a post office or store, but you
might have to pay a fee beyond the cost of the stamps.
Ansfer money from one account to the other. Individuals who have different accounts in
different banks can use the ATM to transfer money across the accounts. They can also use
it to transfer to other people’s account.
10. Stamp Purchases:
An increasingly popular function of modern ATMs is the ability to buy stamps. Although
this functionality is not available at all ATMs, its popularity has been sufficient for its
availability to expand. Payment for goods and services purchased at stores and
restaurants Most stores and restaurants allow payment through the ATM. This another
function of the ATM. Payment for goods and services purchased online Withdrawing
local currency at a foreign bank’s ATM machine at a fair exchange rate Purchase of
airtime The ATM can be used to purchase airtime for themselves as well as for family and
friends.
11. Balance Inquiries
Another common function of the ATM is the ability to check account balance, for savings
or checking, and to print out that balance for future reference.
12. Money Transfes
The ATM can also be used to transfer money from one account to the other. Individuals
who have different accounts in different banks can use the ATM to transfer money across
the accounts. They can also use it to transfer to other people’s account.
1.7 TYPES OF AUTOMATED TELLER MACHINES

In the recent years, the trend of ATM has grown all over India. Now there are many
economical / financial expert analyses on the growth of ATM usage, especially in urban
areas. Now in the urban areas, people usually avoid the branch unless it is necessary,
hence people in a large amount who are living in a busy scheduled life, usually prefers
the ATMs. ATM is an indispensable part of our lives. Withdrawing cash has been made
very simple with the advent of the ATM. However, digital banking has replaced a major
chunk of cash transactions. This is actually a good development since digital transactions
can always be traced whereas cash transactions cannot always be done so. Though that is
understood, cash transactions will be here for many more years to come. And as that is
the case, we think it’s good for you to know the Types of ATM cards in India. Surprised?
Well, contrary to your belief, there is not merely one kind of ATM. There is a bunch of
different ones.
Types of ATM Numbers of ATM
Managed services (MSPs) 105,000
Brown - label / completely outsourcing 75000
Completely managed by bank 27,052
White label ATM 15,195
Total 222,247
 Online ATM :
This type of ATM is connected to the bank’s database 24 hours. You can’t withdraw
beyond the balance you have in your account.
 Offline ATM:
This is not connected to the database of the bank. Even if you don’t have the required
amount in your account, you will be able to withdraw it, if it falls within the prefixed
withdrawal amount. For this, the bank may charge some penalty.
 Onsite ATMs :
These are ATM machines that are set up in the premises where there is a bank branch so
that both the physical branch and the ATM can be used. This is known as being on site
and this can be used for several purposes. Many people can use this to avoid the lines that
are present in the branch and hence save on the time required to complete their
transactions.

 Offsite ATMs :
These are the machines that are set up on a standalone basis. This means that the
bank has a place where there is only an ATM machine then this becomes an
offsite ATM. This is done to ensure that the bank reaches out to more
geographical areas and that people are able to use its services even when there is
no bank branch in the area.
 Worksite ATM:
Worksite ATMs are the ATMs that are located within the premises of an organisation and
generally meant only for the employees of the organization.
 Mobile ATM:
Also known as ATM on wheels. In this, the ATMs moves in various areas for the
customers to let them use their services. This is done for the convenience of the
customers. ICICI BANK was the first private sector bank to start mobile ATM in India.
As per now some other banks have also started ATMs on wheels.
OPERATION BASED TYPES OF ATM:
 White label ATM:
ATMs that are provided by NBFC (NON-BANKING FINANCIAL COMPANY) are
known as white label ATMs. These are set up, owned and operated by non-bank entities
which are approved by RBI and are incorporated under the companies act, 1956. To drive
ATM penetration in the country, RBI has approved (WLAs) i.e. Non-Bank entities to set
up and operate their own brand of ATMs in the country. In these ATMs, transaction White
Label ATMs are those ATMs which set up, owned and operated by non-bank entities. To
aid financial inclusion and drive ATM penetration in the country the Reserve Bank of
India has permitted the launch of White Labelled ATMs (WLAs) i.e private nonbank
companies to set up, own and operate its own brand of ATMs in the country. These white
label ATMs will not display logo of any particular bank. TATA launched the first
white label ATM in India under the brand name of Indicash.
From any bank is allowed and no logo of any particular bank is displayed.
Tata was the first company which launched their WLA in the country with a name
indicash.
 GREEN LABEL ATM:
Green label ATMs are the ATMs that are used for agricultural transaction.
 Orange label ATMs:
Orange label ATMs are used for share transactions.
 Yellow label: ATMs:
Yellow label ATMs are the ATMs that are used for E-commerce.
 Pink label ATM:
This type of ATM is solely made for women banking.
 Brown label ATM:
In this type of ATM, the hardware and lease of the ATM is owned by the service provider
but the cash management and connectivity to banking network is provided by the sponsor
bank.
Cash dispenser: CD (cash dispenser) performs certain functions like cash withdrawal,
mini statement, requests and balance enquiry .Brown label' ATM are those Automated
Teller Machines where hardware and the lease of the ATM machine is owned by a service
provider, but cash management and connectivity to banking networks is provided by a
sponsor bank whose brand is used on the ATM.
The `brown label' has come up as an alternative between bank-owned ATMs and 'white
label' ATMs. As in India white label ATMs were not allowed by RBI (in February, 2012,
RBI has issued the draft guidelines for introduction of white ATMs, but final approval has
yet to come.), the concept of Brown Label ATMs started picking up.
In view of the high cost of ATM machines and RBI's guidelines for expansion of ATMs,
the concept of Brown Label ATM network is likely to expand at a brisk pace in next few
years. In the recent years, there is a visible shift in the way banks look at the ATM
business. From the earlier model where banks used to buy outright the ATM machines
and bear the cost of service, they are now preferring brown label ATMS i.e. where the
machine
and service is outsourced. There are indications that as many as 50% may soon be under
this category.

1.8 WORK AND BASIC ATM PART:

There is hardly a machine that is more ubiquitous in this day and age than the automated
teller machine (ATM). It is something we rely on n a pinch and it is something that makes
modern personal finances an easy thing to manage. But ATMs are relatively complex in
how they work and how they physically operate.
Because the purpose of ATMs is to dispense money, it makes sense that they would be
subject to stringent regulations in both how they operate and the software that is used.
Unlike many other products, owners of retail and other locations cannot directly control
or operate their ATMs unless they have a sponsoring agreement with what is called an
ATM deployer. They also need a sponsoring agreement with a switching company as well
as a bank or financial institution of some kind.
ATMs are essentially basic computers but with additional ATM parts that allow for
specific functions, allowing the software that is running on the computer to carry out the
functions. They can break or malfunction just like any other computer. Since there are so
many specialized functions in an ATM, there needs to be a readily available source of
approved ATM spare parts for maintenance.
PARTS OF AN ATM INCLUDE:

 Card Reader-This reads account information that is stored on a magnetic strip, the
one that you always see on credit and debit cards. The data retrieved is passed on
to
a host processor, which in turn is able to interpret the information and retrieve the
customer’s account information.
 Keypad- This allows customers to input the information they need to give. It lets
them input their personal identification or pin code, select what type of redisplay
screen. Like any computer, this allows customers to see each step of the process
or transaction they are doing.
 Speaker- This allows the customer to hear when keys are being pressed on the
keypad, but it may also allow for additional voice features on certain ATMs.
 Receipt printer-Although much of the process of an ATM is digital, printed
receipts are requested by many or most ATM customers. This ATM part makes
this possible.

Cash dispenser-The main purpose of an ATM is for a customer to acquire cash, so of


course this is the most important part. The cash
dispenser is a pivotal part and a part that is highly
sophisticatednsaction they want to
make, and generally communicate with the
ATM Software of ATM:

Getting new and quality parts for your ATM is economical in the long run and will
prevent headaches down the line. New parts include recent updates that the part may have
needed or changes to the manufacturing process that the old part would not have.
Keeping parts up -to-date keeps the machines running to recent and legal standard. Do
you ever hear about ATMs spitting out cash out of nowhere? Sometimes those are due to
faulty ATM parts. Make sure the parts and pieces of your ATMs are of a high quality and
feel secure in them being out in the field.
There is a computer industry security view that general public desktop operating systems
(os) have greater risks as operating systems for cash dispensing machines than other
types of operating systems like (secure) real-time operating systems (RTOS). RISKS
Digest has many articles about ATM operating system vulnerabilities.
Linux is also finding some reception in the ATM marketplace. An example of this is
Banrisul, the largest bank in the south of Brazil, which has replaced the MS-DOS
operating systems in its ATMs with Linux. Banco do Brasil is also migrating ATMs to
Linux. Indianbased Vortex Engineering is manufacturing ATMs which operate only
With Linux. Common application layer transaction protocols, such as Diebold 91x (911
or
912) and NCR NDC or NDC+ provide emulation of older generations of hardware on
newer platforms with incremental extensions made
over time to address new
capabilities, although companies
like NCR continuously improve
these protocols issuing newer
versions (e.g. NCR's AANDC
v3.x.y, where x.yh are
subversions). Most major ATM manufacturers
provide software
packages that implement these protocols. Newer protocols such as IFX have yet to find
wide acceptance by transaction processors.

Hardware of ATM:

 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.
New ADA voice and text-to-speech guidelines imposed in 2010, but required by March
2012[66] have forced many ATM owners to either upgrade non-compliant machines or
dispose them if they are not upgradable, and purchase new compliant equipment. This
has created an avenue for hackers and thieves to obtain ATM hardware at junkyards from
improperly disposed decommissioned machines.
Mechanisms found inside the vault may include:
 Dispensing mechanism (to provide cash or other items of value)
 Deposit mechanism including a cheque processing module and bulk note acceptor
(to allow the customer to make deposits)
 Security sensors (magnetic, thermal, seismic, gas)
 Locks (to ensure controlled access to the contents of the vault)
 Journaling systems; many are electronic (a sealed flash memory device based on
inhouse standards) or a solid-state device (an actual printer) which accrues all
records
of activity including access timestamps, number of notes dispensed, etc. This is
considered sensitive data and is secured in similar fashion to the cash as it is a
similar liability.
 ATM vaults are supplied by manufacturers in several grades. Factors influencing
vault grade selection include cost, weight, regulatory requirements, ATM type,
operator risk avoidance practices and internal volume requirements. [68] Industry
standard vault configurations include Underwriters Laboratories UL-291
"Business Hours" and Level 1 SafeSRAL TL-30 derivatives, and CEN EN 1143-1
- CEN III and CEN IV.

1.9 SCOPE FOR ATM GROWTH IN INDIA

When we saw a man in a dhoti in a remote town in South India withdraw money from an
ATM, tuck it in the folds and ride away on his cycle, we were truly inspired by the ATM
growth in the country. These were the words with which ICICI Bank general manager OP
Srivastava described the scope of ATM growth in India.
The focus in the ATMs in India conference on Thursday, was on increasing the ATM
network in India on a large scale.
Said FSS managing director Nagaraj Mylandla: Currently, India is positioned as the
second fastest country in ATM growth. ATMs are growing three times more in off-site
premises compared to on-site premises. Added Euronet India MD Loney Antony: ATM
disbursements have overtaken the amount utilised by credit cards in comparison.
Other bankers strongly voiced the need for banks to come together and form a
consortium of a shared ATM network for the betterment of the entire economy. Citing
valuable points and examples, the financial top brass urged the banking community to
drop the whats in it for me approach, and help develop the ATM network within the
country.
The need for sharing ATMs was highlighted by Global Trust Bank president PC Narayan.
A shared network will tremendously cut costs within banks, he said, adding that there
was no need for a concentration of ATMs in one area, when all the work could be done by
a shared ATM network.
Furthermore, Mr Narayan said that between the banks who have a shared network, there
must be equal winnings for all. Banks must also have an equal platform on the tech front,
while the service provider must have a disaster recovery programme, he addedUTI Bank
senior VP Hemant Kaul felt that the days of viewing ATM as a proprietory tool was over.
Banks must generate revenue from ATMs and for this to happen, a collective effort must
be made, he said.
Mr Kaul also gave three pointers in ATM cost-cutting. Space can be reduced by installing
hole in the wall ATMs, security guards who man the ATMs can be cut down, and
networking obviously is a big cost-cutter, he advised.
Moving on, ABN Amro Bank vice-president Ravishankar Venkataraman, stressed on the
need to increase the number of ATMs in the country, while at the same time stating that a
networked partnership was a key to growth. He added, Revenues can also be generated
by displaying advertisements on the ATM screen or around it.
DEFINING THE SCOPE:
You already have a head start on refining the project’s objectives in quantifiable terms,
but now you need to plan further and write down all the intermediate and final
deliverables that you and your team will produce over the course of the project.
Deliverables include everything that you and your team produce for the project (i.e.,
anything that your project will deliver).
The deliverables for your project include all of the products or services that you and your
team are performing for the client, customer, or sponsor. They include every intermediate
document, plan, schedule, budget, blueprint, and anything else that will be made along
the way, including all of the project management documents you put together. Project
deliverables are tangible outcomes, measurable results, or specific items that must be
produced to consider either the project or the project phase completed. Intermediate
deliverables, like the objectives, must be specific and verifiable.One of the project
manager’s primary functions is to accurately document the deliverables of the project and
then manage the project so that they are produced according to the agreed-on criteria.
Deliverables are the output of each development phase, described in a quantifiable way.
always want to know exactly what work has to be done before you start it. You have a
collection of team members, and you need to know exactly what they’re going to do to
meet the project’s objectives.
The scope planning process is the very first thing you do to manage your scope. Project
scope planning is concerned with the definition of all the work needed to successfully
meet the project objectives. The whole idea here is that when you start the project, you
need to have a clear picture of all the work that happen on your project, and as the project
progresses, you need to keep that scope up to date and written down in the project’s scope
management plan.
1.10 Cards of ATM:

An ATM card is a PIN-based card. That means that in addition to using it at ATMs, you
may also be able to use it to make purchases (by entering your Personal Identification
Number) if the merchant is using one of the same electronic ATM networks that’s listed
on the back of your card.
The online or contactless transactions facility will be mandatorily disabled on your debit
or credit card on March 16 if you have never used it for such transactions.
To increase security of debit or credit card transactions, the Reserve Bank of India (RBI)
issued a notification on January 15, 2020, asking card issuers to disable online
transactions and contactless payment services of all those credit and debit cards that have
never been used for an online or contactless transaction. Cardholders now have only time
till March 16
to use such cards for online, contactless transactions to stop them being disabled for these
transactions.

Cards
types 2014 2015 2016 2017 2018 2019

Debit 331.2 394.4 553.5 661.8 771.6 861.1


card

Credit 19.5 19.2 21.1 24.5 29.8 36.9


card

Total 350.7 473.6 574.6 686.3 801.5 898.0

Number of Debit card & credit card in India:

Credit card:
A credit card with a red circle and a slash through it .A debit card is not a credit card.
When you use a debit card, the money is deducted from your checking account. With a
credit card, you’re borrowing money to be repaid later.
A credit card is part of a system of payments named after the small plastic card issued to
users of the system. It is a card entitling it's holder to buy good & service based on the
holder promise to pay for the good & service. The issuer of the cards grants a line of
credit to the consume ( or the user) from which the user can borrow money for payment
to a merchant or as a cash advance to the user. A credit card is different from a change a
card. Where a charge card requires the balance to be paid in full each month. In contrast,
credit card allow the consumer to 'revolve' their balance as the cost of having interest
changed. Most credit card are issues by local banks or credit unions .and are the shape
and size specified by the ISO/IFC 7810 standard as ID -1.
Credit card are issues after on account has been approved by the credit provide rafter
which cardholders can use it to make purchases at merchant accepting that card. When a
purchase at merchant accepting that card. when a purchase is made the credit card user
agrees to pay the card issuer.
 Debit card:

A debit debit card looks just like a regular ATM card, and you can use it at ATMs. The
difference is that a debit card has a Visa® or Mastercard® logo on its face. That means
you can use a debit card wherever Visa® or Mastercard® debit cards are accepted, for
example, department stores, restaurants, or online. and debit cards allow you to use
ATMs, a safe and convenient way to manage your money. There are millions of ATMs
worldwide and you can use many ATMs 24 hours a day, 7 days week. ATM and debit
cards are also a convenient way to make purchases without carrying cash that help you
keep better track of the money you spen d.Debit card are essentially "pay -Now
"instruments linked to a checking account where by transaction can happen either
instantaneusly using online (PlN based) methods or in the near future with offline
(singnature based )method consumers typically have the choice of using online or offline
method ,and their selection often hings on the respective benefits. Online debit allows the
cardholder also withdraws cash at the point -of- sale and offline provides float. According
to ATM & debit Nwes, there was approximately 26.5 billion debit transaction in the
U.S .during 2006. This is up from
6.5 billion transactions in 1999 - a four fold increase.
1.11 HOW TO USE ATM:
You don't want to pay the fee. However, the ATM only shows the fee from the ATM side
of things – your bank might also charge additional fees that you'll find out about later. To
avoid fees, it's always best to use an ATM that is owned by or affiliated with your bank.
Many credit unions also participate in shared branching, which might help you avoid
fees.
For more ideas on avoiding charges, see Where to find Free ATMs.

1) Safety First:

The first thing to remember when using an ATM is to be safe. That machine has direct
access to your bank account, and you might have a lot of cash on hand immediately
before or after you use the ATM. For those reasons, thieves target ATMs (and people
using them). Be aware of your surroundings, and don't use an ATM if anything looks
suspicious. When in doubt, just walk away and find a different, safer ATM. There's no
need to put yourself in harm's way when there are a million other ATMs out there.

2) The Card Reader:


Once you've determined that an ATM is safe to use, insert your card into the card reader.
There should be an image of a card showing you exactly how the card goes in; look for
the black magnetic stripe for guidance, or possibly an image showing how your name and
card numbers hould be lined up. In some cases, you'll insert the card completely into the
ATM, and the machine will hold onto it until your transaction is complete. Other
machines allow you to just "dip" your card quickly so that you can get it back in your
wallet as soon as possible. If the machine holds onto your card, make sure to get the card
back before leaving the machine.

3) Enter pin:

Next, you'll have to enter your personal identification number (PIN) will to prove that
you are an authorized card user. As you learn how to use an ATM, develop the habit of
hiding the keypad as you type in your PIN (use your free hand to cover your typing).
Somebody might be watching you, and some thieves even install hidden cameras on
ATMs to capture PINs. Need ideas on how to use a secure PIN that's also easy to
remember.

4) Choose a transaction

You can use an ATM to do a number of different things, so you'll have to tell the machine
what you want. Getting cash is easiest, but you can eventually learn how to use an ATM
for other transactions.

 Withdrawals are the most common way to use an ATM - you simply get cash out
of your account. For a withdrawal, you'll just indicate how much you want to take
out (usually in increments of $20, but some ATMs allow you to take out smaller
bills).

 Deposits are also growing in popularity ATMs. You can deposit cash and checks if
your bank (and the particular ATM you're at) allow it. However, there are some
risks to ATM deposits, so you should strongly consider making deposits with your
mobile device as an alternative.
 Balance inquiries simply show you how much you have (you'll see your current
account balance). This might be helpful if you need to know how much you can
spend with your debit card.

 Transfers and payments might also be available, depending on your bank. This
option allows you to use the money in one of your accounts (without taking cash
out).
5) Fees, fees,fees

If you're using an ATM that is not affiliated with your bank, you'll most likely have to pay
a fee. ATMs display these fees, and they give you an opportunity to back out of the
transaction if you don't want to pay the fee. However, the ATM only shows the fee from
the ATM side of things – your bank might also charge additional fees that you'll find out
about later.
To avoid fees, it's always best to use an ATM that is owned by or affiliated with your
bank. Many credit unions also participate in shared branching, which might help you
avoid fees.
For more ideas on avoiding charges, see Where to find Free ATMs.
6) Receipt:

ATMs can print receipts for you if you want a written record of your transaction.
However, in most cases receipts are unnecessary – all they do is take extra time and make
it possible for somebody else to see your account information (the amount you withdrew,
or how much cash you have in your account, for example). Now, there are times when
you should certainly take your receipt: if you do something especially important, or if
you make deposits at an ATM, keeping your receipt is a good idea.

7) Finish up:

Once you've done what you need to do, close out your session with the ATM. make sure
that the machine is not waiting for you to perform another transaction. If you walk away
before your session is closed, it's possible that somebody could walk up behind you and
withdraw cash from your account. Don't worry about holding up the line – stand there
until
you're sure that it's safe to leave. That said, it's not a good idea to dilly-dally at the ATM.
Get your cash in your wallet quickly (without holding it in plain view for everybody to
see how much you have), and make sure you have retrieved your card from the ATM. If
your card was inside the machine, you'll want to grab it as soon as the machine spits it out
– if you're too slow, the machine will suck it back in, and you'll be without your card for
a while. If anything strange happens while you use an ATM, contact your bank
immediately. For example, if the machine keeps your card for any reason or fails to give
you money, call your bank. It's possible that the ATM was tampered with and that thieves
will be coming to collect the day’s hauled of cards later. Learn more about how to handle
problems with an
ATM.

1.12 CARD NETWORK


Some banking networks, the two functions of ATM cards and debit cards are combined
into a single card, simply called a "debit card" or also commonly a "bank card". These are
able to perform banking tasks at ATMs and also make point-of-sale transactions, with
both features using a PIN.Canada's Interac and Mastr rcard's Maestro are examples of
networks that link bank accounts with point-of-sale equipment.Some debit card networks
also started their lives as ATM card networks before evolving into full-fledged debit card
networks such as STAR (Interbank Network), and others such as: Development Bank of
Singapore (DBS)'s Network for Electronic Transfers (NETS) and Bank Central Asia
(BCA)'s Debit BCA, both of them were later on adopted by other banks (with Prima
Debit being the Prima interbank network version of Debit BCA).If you're using an ATM
that is not affiliated with your bank, you'll most likely have to pay a fee.
1.13 GLOBAE USES
Eastern Europe, the number of ATMs declined by 7,000, as the result of economic woes
in Russia and Ukraine. The number of ATMs worldwide grew 5 percent in 2015, reaching
3.2 million by year-end, according to "Global ATM Market and Forecasts to 2021," a new
report from RBI. China and India are the largest contributors to this growth; in both
nations, authorities are urging financial institutions to deploy greater numbers of ATMs as
a means to bring unbanked populations into the formal banking system, RBR said in a
press release.RBR forecasts 4 million ATMs will be installed worldwide by 2021. Asia-
Pacific will grow 46 percent and will account for well over half of the global total.The
Middle East and Africa will see comparable growth prompted by similar drivers, but will
represent a much smaller number of ATMs overall.Growth in other regions will be
significantly lower — 7 percent or less. North America will remain the second largest
market; however, its total installed base will be only one-fifth of the size of the base in
Asia-Pacific. To put this into perspective, the two regions had the same number of ATMs
as recently as the early 2000s."China and India have seen enormous growth in ATM
numbers over the last few years and RBR foreca eastern Europe, the number of ATMs
declined by 7,000, as the result of economic woes in Russia and Ukraine.RBR said that in
most established markets, ATM and cash withdrawal numbers continue to increase,
indicating that, despite the challenge posed by alternative payment methods, such as
contactless cards and mobile payments, cash use remains resilient. this will continue as
authorities in these markets are determined to use ATM deployment to spread access to
financial services as far and as wide as possible," said Rowan Berridge, who led the RBR
study.With the exception of central and eastern Europe, all ATM markets expanded
during 2015.
LOCATION OF ATM:
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 .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. 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.

Chapter 2: RESEARCH METHODHOLOGY:


Data Collection:
The present study is of analytical and exploratory nature. Accordingly, the use is made of
primary data. The primary data is collected with the help of questionnaires from a sample
of respondents (100 bank officers and 200 customers) from Pune City using the E-
banking services provided by the various branches of PSBs. The key intention of the
study is to evaluate the security and infrastructure measures of electronic banking
adopted so far. Therefore main objective of the study is evaluation of E-banking measures
adopted in nationalized banks with reference to Pune city. Research methodology a.
Primary data: this is first hand information is collected from the respondents associated
with selected banks. Structured questionnaire prepared by the researcher and it is filled up
by 200 bank
customers and 100 bank officers. Respondents‘ responses are collected from pane city b.
b.Secondary data:
This shall be collected by using a verity of sources. These sources are:
 Public sector banks
 RBI reports
 Journals Of banking and finance
 Web site of RBI
In the present study, sample is divided into two subgroups based on service users opinion
regarding e-banking based on the PSBs. Service users are selected randomly from the
respective banks. The stratified random sampling technique is used for selection of
service users for collecting data from Pune City for the study purpose. This method is
used to make research procedure faster by obtaining a large number of accomplished
questionnaires rapidly and efficiently. This helps to choose the banking sector in Pune
City and their websites. These websites help to get all essential information of the E-
banking services. The selected public sector banks operating in Pune City in form the
universe of the study. The survey of 200 E-banking service users of the selected Public
sector banks has been done. The required data has been collected from respondents
through the well-structured and pre-tested questionnaire. Number of sample units is to be
selected from stratum decided by the researcher in advance. This number is known as
quota which is fixed according to some specific characteristics such as usage of E-
banking services via - ATM, Internet and mobile. Quota sampling technique is used for
selecting E-banking service users for the research purpose. From study area, 50 service
users per bank have been selected. The researchers applied their judgments in the choice
of the sample and get the required information quickly
Chapter 3: LITERATURE REVIEW

Introduction:
The last few years have seen a spate in delivery channels replacing the traditional
brickand-mortar branches. This has led to reduction in dependency on branches and
lowering of fixed costs and other overhead costs. Automated transaction processing,
streamlining operations and fewer errors on account of human intervention are the hall
marks of
information technology implementation. With focused and seamless integration of
multiple channels, banks aim at higher standards of customer service and enhanced
productivity and profitability. The constant pressure from the central regulator, the
Reserve Bank of India, has not only encouraged and motivated banks to implement more
and more IT but has at times pressurized banks into accepting change. The present study
deals with impact of information technology in general and electronic delivery channels
in particular, on customer services and profitability of banks and therefore, the extant of
literature in Indian as well as International context has been reviewed and presented in
five parts pertaining to (A) Automated Teller Machine (B) Mobile Banking (C) Internet
Banking (D) Impact of Information Technology on profitability and customer services of
banks (E) Multiple delivery channels.
Review of literature:
1. R. Renuka et al (2014), in the study “Customers satisfaction towards ATM”
focuses on customer satisfaction towards ATM services offered by the banks and tries to
suggest ways to improve services. Amongst other suggestions, the authors have suggested
increasing awareness about various facilities and enhancing the withdrawal limit of cash
per day. 24 67 hours access got the first rank while quality of receipt got the second rank
for level of satisfaction. To find out the level of satisfaction respondents were provided a
list of fourteen factors which were to be ranked. Likert scale was used for the purpose.
The study considers only customer perceptions towards ATMs. However, staff
perceptions have not been considered.
2. Sisat S. et al (2014), in the paper “Secured Automatic Teller Machine (ATM) and
Cash Deposit machine (CDM)” has segmented ATM threats into three types of attacks:
card and currency fraud, logical attacks and physical attacks. The paper gives an idea
about the basic ATM and its major security issues and basic requirements. Since, ATMs
deal with currency notes, focus should be on note security while designing ATM. This
paper is more theoretical in nature and is not backed by primary data.
3. Dr. Giridhar et al (2013), in their research paper “A study on customer
satisfaction towards services provided through ATMs in Malnad rural regions of Shimoga
District with special reference to SBM”, have collected primary data of customers from
only one PSB i.e. State bank of Mysore in Tirthalli Taluka of Shimoga District. Though
this study is
based on collection of primary data, it does not consider the perceptions of bank staff.
The study does not focus on different types of problems faced by customers while using
ATMs. The study concludes that “Despite the drawbacks in ATMs, it is still preferred as it
benefits bank, employees and customers”. Unlike the present study, this study considers
only one PSB bank but has not considered private sector banks, cooperative banks.
4. R.Melba Kani et al (2013), in their research paper “Issues and challenges faced by
ATM customers of State Bank of India in South Tamil Nadu” mention that increasing use
of ATMs prompted the authors 68 to study the issues and challenges towards use of ATM
services in South Tamil Nadu. The objectives of the study was to examine the awareness
level of ATM services at South Tamil Nadu, to study the level of customer satisfaction on
various aspects of ATM services in South Tamil Nadu, to identify customer problems
while using ATM services and to offer suggestions to overcome the problems in ATM
services in the near future. Primary data was collected from customers of State Bank of
India in South Tamil Nadu which included three districts Kanyakumari, Trinevelli and
Thothukody. The study concludes that young people are drivers of emerging technology
in developing areas and that SBI has been successful in the arena of ATM cards. This
study has used statistical tools such as chi-square test and weighted average score.
However, this study pertains only to the public sector banks and is not a comparative
study. While trying to find out the problems faced by customers the study does not
consider the cost effectiveness aspect.
5. Bishop (2013), in the research paper “An empirical study of customers perception
regarding Automated Teller Machine in Delhi and NCR” attempts to find out the
perceptions of customers of various banks regarding various issues related to ATM/Debit
cards. The study concludes that ATM is a very convenient mode of electronic banking as
a result its usage is increasing day by day. The authors have made a sincere attempt to
ascertain customer perceptions about use of ATM services, perception about ATM
services and the problems while using ATM/Debit cards. However, the author has not
been able to other collect factors regarding customer perceptions other than those
supplied to the respondents.
6. Tulip et al (2012), in the research paper “A comparative study of customer attitude
towards ATM of SBI and ICICI bank” the authors have made sincere efforts to compare
the attitude of people towards ATM of SBI 69 and ICICI Bank. The study aimed at
finding out the factors influencing the use of ATMs and the problems faced by customers.
Customers of both banks used ATM as it was convenient, availability of machines easily
and due to security aspects. The problem faced by SBI customers was that ATMs
dispensed old currency notes while that of ICICI bank customers was that ATM was out
of cash. This study provides a comparison between public sector banks and private banks.
However, Co-operative banks have not been considered in this study. Also, staff
perceptions about ATM have not been considered.
7. Ramona Premlatha J. et al (2012), the objective of this paper “Analysis of customer
satisfaction with reference to ATM services in Vellore District”, was to understand the
socio-demographic variables of customers, to analyze the satisfaction level of customers
towards ATM services in Vellore district, to study the convenience of using ATM and also
to find out customer attitude towards safety, assurance & flexibility of using ATM
service. Five point Liker scale was used to collect customer perceptions. Significant
relationship between age and convenience and safety was found to exist. Important
relationship between gender and tangibility, convenience and responsiveness was found
to exist.

Chapter 4: DATA ANALYSIS AND INTERPRETATION AND


PRESENTATION:
Q1.) Do you use ATM?
1. Yes
2. No
Yes
NO

INTERPRETATION:
As per responses of survey base on 50 responses under this survey 35 people are use ATM
was as 15 people are does not use ATM.
Q2.ATM can be safe for Transaction?
1. Yes
2. No

Yes
No

INTERPRETATION:
As per responses of survey based on 50 responses under this survey 30 people are responses
in yes, its is safe for transaction and remaining 20 peoples are response in no.
Q3.How many times do you used ATM?
1. One times
2. Two Times
3. Many times
4. No used

One times
Two Times
Many Times
No used

INTERPRETATION:
As per responses of survey based on 50 responses under this survey 15 people used one time
ATM then 20 people used two time ATM and 10 peoples are used many time ATM.and
remaining 5 people are not using ATM.
FINDINGS:

To find out the differences in perception of customers on the Service Quality dimension
Public Sector Banks and Private Sector Banks, independent t-test and one way analysis of
various (ANOVA) was used. Significant differences emerged between the Public Sector
Banks and Private Sector Banks on the Service Quality dimensions. Customers of Private
Sector Banks are highly satisfied in comparison to Public Sector Banks on the Service
Quality dimensions. Customers of Public Sector Banks are not as much satisfied on the
ground of Tangibility, Reliability, Responsiveness and Assurance on the Service Quality
which shows the difference in the percent Service Quality of the customers in Public
Sector Banks and Private Sector Banks. Customers of the bank have different perception
and expectation regarding the Service Quality of their banks. The service quality
dimensions 'ATM service quality’ measures the 'quick cash withdrawal through ATM’,
ATM location, safe and secure ATM transaction, ATM machine, Attractive appearance of
ATM, excellent quality of currency. The satisfaction level of customers regarding the
service quality dimensions 'ATM service quality’ is same in both the Public Sector Banks
and Private Sector Banks. The mean values in case of public and private sector banks for
‘ATM service quality’ do not make any difference. This indicates that there is no
significant variation in the perception of customers for the Service Quality dimension
'ATM Service Quality’ between Public Sector Banks and Private Sector Banks in Retail
Banking. It is found that the customers have no difference in the satisfaction towards the
'quick cash withdrawal through ATM, ATM location, safe and secure ATM transaction,
ATM machine, Attractive appearance of ATM, excellent quality of currency between
Public Sector Banks and Private Sector Banks in Retail Banking.
CONCLUSION

Information Technology has swept the Globe. It has positive influence on bank
management in general and management of delivery channels in particular. Electronic
and net based facilities like ATMs, Net Banking, and Mobile Banking have given a whole
new face to the banking business. Banks, all over the world, have realized the need for
adapting themselves to the changes that are taking place in the modus operandi of
delivering the services to the customers. Maintenance of customer loyalty forces the
banks to constantly seek innovative ways and means to give convenience to customers.
Foreign and new private sector banks have led the way for automation of financial
services and other banks have followed. The top managements of the banks are viewing
information technology as a business enabler and as a vital part of strategic bank
management. All over the world, about a million ATMs have been installed by different
banks. ATMs are becoming more and more popular because of it merits. In India too it is
felt that automation of the banking transactions through ATMs will save the customers
from going through the cumbersome time taking paper work and procedures. In effect the
ATMs could usher in a revolution in customer convenience. In future ATMs can "work as
small branches" and the Banks can save a lot of expenditure on account of infrastructure
and wages.
RECOMMENDATION AND SUGGESTION

Suggestions-General On the basis of the conclusions drawn following suggestions can


be made for improving the acceptability and functioning of the ATMs. Location Due care
should be taken in deciding location of ATMs. Cost-benefit analysis foams should be
undertaken on a regular basis. Location of all ATMs having low hit rates should be
reviewed and have to be recommended for relocation. Avoid locating 194 ATMs near
wine shops as some of the customers feel embarrassed to go to such ATMs. There is also
possibility of antisocial elements gathering at the wine shops. While selecting the site for
ATM, locations that are less prone to crime must be preferred. The location of the next
nearest ATM of the bank should be accessible to the customer within a reasonable radius.
Boards Indicators like lollipop boards, fluorescent glow signboards are to be placed on
the main roads indicating the location of ATMs. Bank ATM signboards should be placed
on the pillars boards outside petrol pumps that display the various products services
available at the petrol pump. ATM Sign Boards on the booths should be lighted up and
should be clearly visible from outside. Display boards stating that, ‘Occupying an ATM
booth for any purpose other than for using the ATM Machine is a cognizable offence and
anyone found to be doing so could be proceeded against by the Bank’ have to be placed
at the unmanned ATM sites to discourage people from unauthorized entry. IP Phone
Install mini -version of an IP Phone connected to a Call Centre at every ATM so as to
enable the customer to call up in case ofcomplaints. Outsourcing Maintenance of ATM,
cash replenishment, checking and repairing of ATM, checking lights, maintenance of
ACs, and replenishment of publicity material and consumables etc. can be outsourced
and centralized for offsite ATMs. If outsourcing arouses an industrial relations issue,
banks should consider putting all offsite ATMs under one department or cell for
replenishing all the cash, publicity material, paper rolls, and undertaking repairs to ATMs.
Currency ATM fit notes are to be replenished in ATMs especially the offsite ones. Cash
Administration Cell could ensure this at offsite ATMs. Channel Manager Offsite ATMs
should be controlled and monitored centrally by Channel Managers but not by the-bank
branches.
BIBLIOGRAPHY:

1) ftp://sunsite.tut.fi/pub/Local/linux-atm/misc/
2) http://linux-atm.sourceforge.net/API/
3) https://en.m.wikipedia.org/wiki/atm
ANNEXURE:

NAME OF THE RESPONDENT:


AGE:
GENDER:
Q1. Do you use ATM?
a. Yes
b. NO

Q2. ATM can be safe for transaction ?


a. Yes
b. No

Q3. ATM means


a. Any time money
b. Auto truck of Mahindra
c. Automated Teller machine
d. Automated teller mechanism

Q4. ATMS are


a. Branches of Bank
b. Manned counters of Bank
c. Unmanned cash dispensers
d. None of this above
Q5.First Bank to introduce ATM
a. HSBC
b. ICICL Bank
c. SBI
d. Axis Bank

Q6.)Cash transaction are better or ATM


a. YES
b. NO

Q.6) ATM can be used for


a. Cash withdrawal
b...Account enquity
c. statement of a/c
d. All of this above

Q.7) How many time do you used ATM


A. One time
B. Two times
C. Many times
D. no used.
Q8) opening of maximum of ATMs is an example of
.Indirect marketing
B .Direct marketing
c. Social marketing
D. none of this
above

Q.9) Non bank owned ATM is also called


a. White level ATM
b. Brown level ATM
c. Green level ATM
D. ON site ATM

Q.10) First bank to provide mobile ATM


a. HSBC
b. ICICI
c. SBI
d. AXIS bank

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