Introduction About ATM

An automatic teller machine (ATM) is an electronic device, which allows a banks customers to make cash withdrawals and check their account balances at any time without the need for a human teller. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts or even by postage stamps. NAMES ATMs are known by a wide variety of names, some of which are more common in certain countries than others. Examples include: Automated Banking Automated Teller Machines Machines (ABM is commonly used by Canadian bank) Bank Box Bank Machine, in Canada Cajero Automatico, in Spain Cash Box Cash Dispenser Cash Machine Geldautomat, in Germany (Geld=money) Hole-in-the-wall

HISTORY
BarclaysBank. This installed the worlds first ATM in Enfield Town in the London Borough Of Enfield, London onJune27, 1967 This instance of the invention is created to John Shepherd-Barron, although George Simjian registered patents in New York,USA in the 1930s and Don Wetzel and two other engineers from Docutel registered a patent on June4,1973. In modern ATMs, customers authenticate themselves by using a plastic card with a magnetic strip, which encodes the customers account number, and by entering a numeric pass code called a PIN (Personal Identification Number), which in some cases may be changed using the machine Typically, if a number is entered incorrectly several times in a row most ATMs will retain the card as a security precaution to prevent an unauthorized user from working out the PIN by pure guesswork. NETWORKING Most ATMs are connected to authorization of a transaction by the card issuer or other authorizing institution via the communications network.

ATM CHARGES
Many banks in the United States charge fees for the use of their ATMs.In some cases these fees are assessed solely for non-bank members, in other cases they apply to all users. Many oppose these fees because they are actually saving money for the banks; ATMs are, though more convenient than withdrawals from human tellers, less costly for the banks. ATMs are placed not only near banks, but also in locations such as malls, grocery stores.

HARDWARE AND SOFTWARE

ATMs contain secure crypto processors, generallywithin an IBM PC compatible host computer in a secure enclosure. In store ATM typically connect directly to their ATM Transaction Processor via a modem over a dedicated telephone line, although the move towards Internet connections is under way. In addition, ATMs are moving away from custom circuit boards and into full- fledged PCs with commodity operating systems such as Windows2000 and Linux. RELIABILITY ATMs are generally reliable, but if they do go wrong customers will be left without cash until the following morning or whenever they can get to the bank during opening hours. Of course, not all errors are to be detriment of customers; there have been cases of machine giving out money without debiting the account. Error that can occur may be mechanical (such as card transport mach; key pads; hard disk failure); software (such as operating system; device deriver; application); communication; or purely down to operator error.

SECURITY
Early ATM security focused on making the ATMs invulnerable to physical attack; they were effectly safes with dispenser mechanism. A number of attacks on ATMs resulted, with thieves attempting to steal entire ATMs by ram raiding Modern ATM physical security concentrates on denying the use of the money inside the machine to a thief, by means of techniques such as dye markers and smoke canisters. This change in emphasis has meant that ATMs are now

frequently found free standing in places like shops rather than mounted into walls. Another trend in ATM security leverages the existing security of a retail establishment. In this scenario the fortified cash dispenser is replaced with nothing more than paper- tape printer. The customer requests a withdrawal from the machine, which dispenses no money, but rarely prints a receipt.

ATM in India for 24 Hour Banking

Now, your money is accessible to you 24 hours a day, 7 days a week, 365 days a year from any of our over 1054 ATM across India. So, wherever you are, at whatever time, you will always have access to your account. Make the most of the e-Age Banking conveniences through HDFC Bank ATM across the city and the country for 24 Hour Banking

ATMs... here, there, everywhere

The banking sector in India is facing challenging times. With the advent of globalization, privatization and liberalization in India, the banks are now focusing on cost reduction, innovative products and technology. Net banking, phone banking, mobile banking, ATMs and bill payments are the new buzz words that banks are using to lure customers. ATM or Automated Teller Machines are a means of convenience for customers. So much so that most of the people have changed the acronym to Any Time Money. HSBC Bank was the first bank to introduce the ATM concept in India way back in 1987. Now, most of the banks have their ATM outlets in India. Private sector banks have taken the lead in this regard. ICICI, UTI, HDFC and IDBI together account for more than 50% of the total ATMs in India. ICICI Bank was the first bank to cross the 1,000 mark in India. SBI

has taken decided to take the plunge and grow aggressively with 1070 centers. Other public sector banks have realized the urgent need for ATMs and are planning to either set up their own ATM centers or enter into tie-ups with other banks.

Banks SBI ICICI UTI HDFC IDBI

No. Of ATMs 1070 1007 491 475 225

The Indian banks have come up with a Swadhan scheme where the banks can use each others ATM at a cost (under Swadhan scheme, a customer has to pay Rs.35 extra) ICICI and SBI, two big players in terms of ATM penetration in India have taken the decision to stay out of the scheme. With Swadhan it was hoped that Indian banks' customers would be able to benefit from an
5

ATM pool that solved the problems of single-ATM outlet banks and its attendant problems of limited access, distance and time. The main features of this card are: No exchange fee charged to change an old ATM card for a Swadhan card. Rs3,000 fixed as the ceiling on withdrawal. Exception made for select customers who can withdraw up to Rs10,000. Still, this is lower than the average withdrawal of Rs15,000 by regular ATMs. IBA gives banks the discretion to decide a higher maximum amount for withdrawal. Transactions conducted through any of the member banks appear on a bank statement, which is given only by your own bank. All transactions conducted in any of the member banks appear on the bank statement, but only your own bank will provide this. However, no overdraft facility is available on Swadhan cards. Let's take a look at how the system works. A switch routes all information and transactions among member institutions. It transmits the information and/or data to the card-issuing bank or its processor, which approves or declines the transaction request and notifies the switch. The card-issuing bank's decision is then routed by the switch to the processor of the ATM, which completes the transaction. At the end of each day, accounts among members are settled and account balances are transmitted to each member institution The cost of setting up an ATM center is around Rs1mn. The maintenance cost per annum works out to around Rs1.2-1.4mn per annum. To reach the break-even point within a year, there should be around 250-300 transactions per day per ATM. The companies are telling customers to use the ATMs more rather than visit the branches. Some banks like HDFC and Citibank charge a penalty if a customer visits the branch. There is also an issue of whether constant use of ATMs benefits the bank. A senior banking official
6

explained that if a person wanted Rs5, 000 to use during a week, earlier, he would have made one trip to the bank and withdrawn the entire sum. With ATMs located conveniently at various outlets, he may visit the ATM even two to three times a week and withdraw money as and when he needs it. Since there is a cost involved in every transaction, it may not be beneficial for the bank if a customer makes many visits for a small sum. Expectations are that in the years to come, a charge may be levied on ATM transactions. When contacted, banking officials were unwilling to commit or comment on the issue. NCR India and HMA Die bold are the two main players who set up ATMs in India. Both are very optimistic about the growth of ATMs in India. In the years 2000 and 2001, the market has grown by a whopping 100 percent over the previous year. They are expecting it to grow at a rate of 70-80 % annually in the next couple of years. According to a reported estimate, in coming 4-5 years, there will be around 30,000 ATMs in India.

Is an ATM Card like a Credit Card?

No, an ATM Card is different from a Credit Card. Using your ATM Card, you can access your account and carry out most of your banking transactions, round the clock. But you cannot shop with your ATM Card. Also, unlike a Credit Card, your ATM Card prevents you from overextending yourself by permitting you to withdraw cash only as long as there is money in your account. Finally, if you withdraw cash using a Credit Card, you will be charged a service fee, whereas using an ATM Card does not attract any charges.

What transactions can I perform using my ATM Card?

You can carry out the following transactions at all our ATMs across the country: Withdraw cash Deposit a cheque or cash Request a mini-statement Make a balance inquiry Transfer funds Change your PIN Request a cheque book or account statement Request product information Pay your utility bills

Do I have to maintain any minimum balance in the account for using the card?

You can only withdraw to the extent of the balance in the account.

Research Methodology
Research Methodology is a way to solve the research problem systematically. It may be understood as a science of studying how research is done scientifically. In it we study the various steps, the research process that are generally adopted to study the research problem & basic logic behind them.

Research Design and Methodology

The methodology consisted of descriptive research. The research consisted of two stages. In the first stage a survey was conducted to collect the data related to the ATM based service users. Second stage involved the analysis of the data collected in the first stage.

Sample Size- A sample of 100 respondents was taken. Geographical Area- Bhiwani and Hisar Region

Data Collection:
Data has been collected both from primary as well as secondary sources. Primary sources- the primary source of data was questionnaire filled by ATM users in Bhiwani and Hisar Region. After the collection of data it was arranged and conclusions were drawn.

10

Secondary sources- the secondary sources of data were various websites and magazines. These sources help in gaining the knowledge about industry. These sources are listed in the references.

Data Analysis: Data has been analyzed by using statistical tools like bar diagrams in the form of graphs for data analysis.

11

40 36 35 32 30

25

20

15

14

14

10 6 5 2 0 ICICI Series1 14 SBI 32 PNB 36 HDFC 14 OBC 2 CORPO OTHER RATION S BANK 6 4 4

Chart No. 01 SHARE OF VARIOUS BANK'S REGARDING ATM SERVICE USERS

12

NO 10%

YES 90%

YES

NO

Chart No. 02 RESPONSE REGARDING ATM SERVICES BETTERNESS WITH COMPARISION TO TRADITIONAL BANKING

13

70

67

60

50

40

30

28

20

10 4 1 0 TO AVOID BANK PERSONAL 4 TO GET 24 HRS SERVICE 67 FAST SERVICE 28 TO CHECK THE SERVICE 1

Series1

Chart No. 03 PREFRENCE FOR USING ATM SERVICES

14

45 40 35 30 25 20 15 10 5 0 1 TO 5

42 37

14

5 TO 10

10 TO 15

MORE THAN 15

Chart No. 04 NO. OF VISITS TO ATM MACHINES PER MONTH

15

100 100 90 80 70 60 50 40 30 20 10 0 MONEY WITHDRAW 100 BALANCE CHECK 76 HOROSCOP E 23 23 15 76

FUN 15

Series1

Chart No. 05 PREFRENCE REGARDING SERVICES PROVIDED THROUGH ATM

16

70 63 60

50

40

30 21 20 13 10 3 0
NOT AT ALL Series1 3 AT LIMITED LOCATIONS ONLY 21 ALWAYS AND AT ALL LOCATIONS 13

AT ALMOST ALL LOCATIONS 63

Chart No. 06

SATISFACTION REGARDING SERVICES OF GUARD AT ATM LOCATIONS

17

NO 32%

YES 68%

YES

NO

Chart No. 07 SENARIO REGARDING PROBLEM FACED BY ATM USERS

18

30

29

25 21 20

15 11 10

WRONG NON CARD MACHINE INFORMATI AVAILABILI ACCESSIBI HANGING ON TY OF LITY 29 21 3 4

OTHERS 11

Series1

Chart No. 08 TYPE OF PROBLEM FACED

19

NO 24%

YES 76%

YES

NO

Chart No. 09

SATISFACTION REGARDING LOCATION OF ATM CORNERS

20

50 45 40 35 30 25 20 15 10 5 0
Series1 WRONG TRANSACTION 42 SECURITY PROBLEM 26

46 42

48

26

CARD CAPTURING 46

CARD READING 48

Chart No. 10

PROBLEM FACED REGARDING SERVICES CRITERIA OF ATM

21

NO 18%

YES 82%

YES NO

Chart No. 11

CUSTOMER SATISFIED REGARDING SERVICES OF BANK OFFICIAL IN CASE OF ATM RELATED PROBLEM

22

YES 20%

NO 80%

YES NO

Chart No. 12

CUSTOMER WHO WANT TO CHANGE THE BANK BASED UPON ATM SERVICES

23

8
8 7

6
6 5 4 3 2 1 0 Series1

ICICI 6

HDFC 6

SBI 8

Chart No. 13

TO WHICH BANK'S ATM SERVICE CUSTMER WANT TO SHIFT

24

SUGGESTIONS
All the ATM machines must have the facility to withdraw even small amount. ATM machines must also handle the currency notes mainly of Rs. 50 and Rs. 100 The customers are very eager to get the deposit facility also through ATM machines. The ATM is greatly demanded by semi urban and the rural areas. The bank officials must keep sight on the availability of money mainly at non-branch based remote ATMs. The ATMs should be made more interactive even to the common less educated population.

25

Limitations of the study

1. The sample size is not the representative of the population under consideration. 2. The time to go for such type of complete study was not enough. 3. The information provided by the respondents may be biased and the communication related problem and avoidance towards filling of questionnaire might affect the results. 4. The money related resources are always not enough.
5. Some respondents were reluctant to reveal the information on the

pretext that they did not have sufficient time.

26

Bibliography

Kotlar & Armstrong, Philip & Gary (March 2001), Principles of Marketing, 9th edition, Prentice Hall of India Pvt. Ltd. , New Delhi. Kothari C.R. (2002), Research Methodology, 2nd edition Wishwa Prakashan, New Delhi. www.google.com www.infobank.com www.atmserviceindia.com

27

QUESTIONNAIRE
1. Do you have ATM card? YES [ ] NO [ ] 2. Which banks ATM card you are using? (You can mention more than one if you have) _________________________________________________________ _________________________________________________________ __________________ 3. Would you suppose ATM card based banking is better than traditional banking? YES [ ] NO [ ] 4. If yes, then why you prefer ATM service than traditional banking? a) To avoid bank personal interaction. b) To get 24 hour banking services. c) To get fast service. d) Just normally to check the service. 5. How frequently you use your ATM card for any service? ______Times per month. 6. Please remark 1,2,3,as you prefer about services provided by bank through ATM card? a) Money withdraw. b) Account check. c) Horoscope. d) Money deposit (if service available). e) Mention if any other------------------------. 7. Are you satisfied with the services of Guard at ATM service? a) Not at all, b) At limited locations only. c) At almost all locations. d) Always and at all locations. 8. Have you faced problem regarding ATM machine functioning? YES [ ] NO [ ]

28

9. If yes, please mention (or tick) What Type of problem? a) Regarding wrong information. b) Non-availability of money. c) About card acceptability. d) About machine hanging. e) Mention if Any other_____________________________. 10.Are you satisfied with the location of ATM corners? YES [ ] NO [ ] 11.Have you faced any problem regarding (please Tick) YES a) Wrong Transaction [ ] b) Security problem [ ] c) Card capturing by machine [ ] d) Card reading [ ] NO [ ] [ ] [ ] [ ]

12.Are you satisfied with the behavior of bank official regarding ATM customers problem? YES [ ] NO [ ] 13.Would you want to change your bank account regarding ATM related services? YES [ ] NO [ ] 14. If yes, which bank you will like to change & why?

__________________________________________________ __________________________________________________ ________________________________

15. Mention if any Changes you want to include in ATM based service _________________________________________________________ _________________________________________________________ __________________ Personal Information

Name Occupation Age Bank

City /Town

: : : :
:

_____________________ _____________________ _____________________ _____________________

_________________________

29