A Study On Atm
A Study On Atm
A Study On 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
February 2021
INDEX
Chapter No. Title Page No.
1 Introduction 1 to
2 Research Methodology
3 Literature Review
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
1.9 Scop of AT
Findings
Conclusion
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.
Certified by
Asst. Prof. Manali Churi.
ACKNOWLEDGEMENT
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.
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
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.
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.
. 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.
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.
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.
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:
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
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.
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.
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.
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
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
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