REPORT ON AUTOMATED TELLER MACHINE (ATM)

MADE BY: ASMA SIDDIQ BBA 5TH INDUS UNIVERSITY SUBMITTED TO: SIR RASHID ALI

ACKOWLEDGEMENT
The successful completion of my project on Automated Teller Machine would have been impossible without the timely help of certain people. I am thankful to those who have helped me throughout my project work. I wish to express my gratitude to Prof. RASHID ALI who made me confident to choose this topic and helped me to get information and also to go ahead with the preparation of the project. I would express my indebtedness to my family members and friends for their constant support and for infusing me with enthusiasm to achieve the task successfully.

TABLE OF CONTENT

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CONTENTS Abstract Objectives of study Summary System Analysis Methodology Conclusion

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1 2 3 4 5 6

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ABSTRACT
This report attempts to understand the design of an Automated Teller Machine (ATM) system, a device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. The strip contains an identification code that is transmitted to the bank's central computer by modem. To prevent unauthorized transactions, a personal identification number (PIN) must also be entered by the user using a keypad. The computer then permits the ATM to complete the transaction, most machines can dispense cash, accept deposits, transfer funds, and provide information on account balances. Banks have formed cooperative, nationwide networks so that a customer of one bank can use an ATM of another for cash access. Some ATMs will also accept credit cards for cash advances. The first ATM was installed in 1969 by Chemical Bank at its branch in Rockville Centre, New York. A customer using a coded card was dispensed a package containing a set sum of money.

Objectives of the project

To make observation about the concepts & functions of Automated Teller Machine. To analyses & discuss the strategic issues present in Automated Teller Machine. To understand the nature & structure of Automated Teller Machine. To link theoretical knowledge with real life.

PROJECT ABSTRACT
Project Summary
An automated teller machine (ATM) or automatic banking machine (ABM) is a computerized telecommunications device that provides the clients of a financial institution with access 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 a unique card number and some security information such as an expiration date or CVVC (CVV). Authentication is provided by the customer entering a personal identification number (PIN).

Purpose
Using an ATM, customers can access their bank accounts in order to make cash withdrawals (or credit card cash advances) and check their account balances as well as purchase cell phone prepaid credit. 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
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often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well.

Scope
The main purpose of the ATM division and information service is to provide the customers financial flexibility, worldwide acceptance and round-the clock convenience. Bank issues only VISA Credit Cards, the renowned Credit Card brand. Cardholders can purchase goods/services up to the credit limit and can reuse the credit facility upon repayment. Credit Card is a safer substitute to cash and is the major mode of payment worldwide. Standard Chartered Bank is the first to introduce the TAKA CREDIT CARD. The card is issued basically to a persons name and the specific person can use the card in anywhere in Bangladesh. The business activity of Premier Bank Credit Card section is to keep the records of all sales and customers requests, the information of cardholders and reports them to necessary documents.

INTRODUCTION
Viewed from a purely technical perspective, an ATM is simply a safe with an electro-mechanical input and output system which is itself controlled by a fully electronic user interface.
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It is important that a ATMs user interface should not only be easy to use and clearly understandable but should be designed so as to minimize the likelihood of the customer leaving without taking from the machine all the things he needs to take. These are the cash, paper receipt and above all, the card. There is no doubt that the card is the most likely items to be forgotten by a customer, who sees the purpose of the interactive process being to obtain cash. Consequently, ATMs usually have some kind of sound alarm, which only ceases when the customer has removed his card from the slot. Some machines also provide visual message to remind the customer to retrieve the card, especially if the functions is one where the customer is not going to lingering by the machine until the cash has been dispensed. The machines currently in use allow user to draw any sum of up to a limited account, view the current position of their accounts and order a new cheque book. To obtain money from the unit the customer need special ATM card and is notified of personal identification number, which is not shown on the face of the card. The card must to be inserted into machine and the personal number typed in. the machine will validate the code number and if correct will allow access the banks computer to check the account balance and if there are sufficient funds, to withdraw cash.

TOOLS / PLATFORM / LANGUAGES

TOOLS:
Processor :- Intel Pentium 4 or Later or Compatible Hard Disk :- 10GB or more RAM :- 256MB or more Printer :- Any Monitor :- SVGA Color Monitor (Touch Screen or Simple) Pointing Device :- Touch Pad or Keys

PLATFORM:
Operating System :- Microsoft Windows XP or Later or Equivalent

LANGUAGES:
Front End :- Visual Basic 6.0 Back End :- Oracle 8i

INTRODUCTION TO ATM CARD

If you have a bank account there is a good chance that you have an ATM card, which stands for Automated Teller Machine. This card gives you the ability to go to an ATM and perform transactions. An ATM is a machine or computerized terminal that gives bank customers the ability to access their funds without the need of a teller or bank employee. Every customer has a four-digit pin code, as a matter of security that must be keyed in before transactions can be performed. Customers have access to their funds 24 hours per day, seven days per week.

TYPES OF ATM CARDS

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

Debit ATM Card:

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

ATM Credit Cards:

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

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WORKING OF ATM
There are mainly two types of ATMs which differ according to the way they operate. They can be called as Leased-line ATM

Dial-up ATM machines

Any ATM machine needs a data terminal with two inputs and four output devices. Of course, for this to happen there should also be the availability of a host processor. The host processor is necessary so that the ATM can connect and also communicate with the person requesting the cash. The Internet Service Provider (ISP) also plays an important role in this action. They act as the gateway to the intermediate networks and also the bank computer. A leased-line ATM machine has a 4-wire, point to point dedicated telephone line which helps in connecting it with the host processor. These types of machines are preferred in places where the user volume is high. They are considered high end and the operating costs of this type of a machine is very high. The dial-up ATM machines only has a normal phone line with a modem and a toll free number. As these are normal connections their initial installation cost is very less and their operating costs only become a fraction of that of a leased-line ATM. The host is mainly owned by the bank. It can also be owned by an ISP. If the host is owned by the bank only machines that work for that particular bank will be supported.
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SEQUENCE DIAGRAM:

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

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

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

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

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

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

Cash dispenser

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

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

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

Cash /Cheque Deposit:

Again, due to the strong cash culture in India, cash deposits are most likely higher than in other markets, especially cash deposits made by commercial customers such as retail shopkeepers and those whose work involves substantial traveling. A high cash withdrawal rate results in higher ATM servicing costs due to frequent cash replenishment requirements. Recent developments in ATM technology have made I possible to recycle cash in ATMs. Currency notes received as cash deposits are counted; soiled notes separated and deposited cash dispensed to fulfill withdrawal transactions.
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However, regulatory concerns relating to identification of counterfeit notes and its depositors need to be addressed first. ATM with Cheque deposit facility is not picking up in India, like other countries. One of the reasons is the delay in collection of the cheque deposited in ATMs. Cheque deposited in ATMs is to be collected and deposited in the designated branch for collection. Another reason is the introduction of cheque deposit Kiosks by various Banks especially Private sector ones. These are kept at each some important locations/branches where customers can deposit there cheques which are collected at intervals which may be difficult in ATMs.

Bill Payments
Most utilities have inadequate infrastructure for receiving bill payments resulting in long queues at collection centres. Hence, bill payment at ATMs has achieved noticeable acceptance by bank customers. Most banks provide this service through bi-lateral arrangements with bill-payment service providers. ATM users register their water, electricity and telephone utility accounts with banks, check their dues at ATMs, approve bill payments that are debited to their bank accounts and receive printed receipts for the transactions. This service has the effect of improving customer satisfaction for both the bank as well as the bill18

payment service providers. Some Banks ATMs even accept charitable contributions to Temples.

SYSTEM ANALYSIS
System analysis is detailed approach of the existing system and includes finding how the system works and what it does. It also includes in finding out more details such as, what system problems are and what users require of any new or changed system. It emphasizes the clarification and understanding activities. Analysis uses many of the commonly used system analysis techniques, such as data flow diagrams and data analysis. This calls for interviews with System users , questionnaires and other data gathering methods .

FEASIBILITY STUDY
Once the problem is clearly understood, the next step is to conduct feasibility study, which is high-level capsule version of the entered systems and design process. The objective is to determine whether or not the proposed system is feasible. The tests of feasibility have been carried out. Technical Feasibility Economical Feasibility Operational Feasibility
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TECHNICAL FEASIBILITY
In Technical Feasibility study, one has to test whether the proposed system can be developed using existing technology or not. It is planned to implement the proposed system using java technology. It is evident that the necessary hardware and software are available for development and implementation of the proposed system. Hence, the solution is technically feasible.

ECONOMICAL FEASIBILITY
As part of this, the costs and benefits associated with the proposed system compared and the project is economically feasible only if tangible or intangible benefits outweigh costs. The system development costs will be significant. So the proposed system is economically feasible.

OPERATIONAL FEASIBILITY
It is a standard that ensures interoperability without stifling competition and innovation among users, to the benefit of the public both in terms of cost and service quality. The proposed system is acceptable to users. So the proposed system is operationally feasible.

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ATM Advantages
Ability to draw cash outside normal banking hours. Cheaper where bank charges are incurred and often quicker than using normal cashier services. Does not just operate as a medium for obtaining cash. Amount up to a set limit per day is available. All customers can apply for the joint accounts two separate cards can be issued. Although ATMs are primarily located on bank premises, some are available elsewhere. Where an incorrect PIN is used several times in succession (say where a thief has stolen the card), the ATM will retain the card. ATM service is available for 24 hours a day, 7 days in a week. It helps to check the balance in an account. It is easy, saves time of customers.

Methodology
The completion of the project involved acute scanning of the library and different text books. A lot of information has also gathered from the web. A visit to HDFC Bank and IDBI Bank also made to gather information pertaining to the project.
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 The information collected has been diluted and presented in very simple and lucid manner, which will help the reader to understand the topic.

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

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