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ATM Revolution
ATM Revolution
ATM Revolution
A PROJECT REPORT
ON
STUDY OF ATM REVOLUTION IN INDIA
SUBMITTED BY
PATHARI HEMANGI KISHOR
T.Y.B.Com (B&I) [Semester V]
B.N.N. COLLEGE
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2016-2017
1
ATM REVOLUTION IN INDIA
A PROJECT REPORT
ON
STUDY OF ATM REVOLUTION IN INDIA
SUBMITTED BY
PATHARI HEMANGI KISHOR
T.Y.B.Com (B&I) [Semester V]
B.N.N. COLLEGE
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2016-2017
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ATM REVOLUTION IN INDIA
B.N.N.College, Bhiwandi.
(Arts, Science & Commerce) Dist.Thane 421 305
SELF FUNDED COURSES
Bachelor of Banking and Insurance (B.B.I.)
CERTIFICATE
Examiner: - 1._______________________
College Seal
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ATM REVOLUTION IN INDIA
DECLARATION
________________________
PLACE: BHIWANDI
DATE:
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ATM REVOLUTION IN INDIA
ACKNOWLEDGEMENT
I am deeply indebted to my project guide, my family and friends who have supported me all
through my project by encouraging and inspiring me. They have also contributed to the quality
of the material presented in the project. I would like to acknowledge all those whom I owe a
guru and guide, Miss Shrivani yennam ,Assistant Professor, B.N.N. College, Bhiwandi, Dist.
Thane, Maharashtra for her constant encouragement, support and generous attitude which
helped me with new insights not only in understanding different aspects of my project but also
the intricacies of life. It was truly an enriching experience working under her guidance.
I must thank the Management of B.N.N. College, Dist.Thane, Maharashtra and our Principal
Dr. Ashok D. Wagh for constantly encouraging me. I also thank our coordinator Dr. Suvarna T.
Rawal, and all Vice-Principal of B.N.N. College for their constant support and cooperation.
I express my deep sense of gratitude to all my teachers, friends and all well wishers
who were always concerned about my project and contributed directly or indirectly for the
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ATM REVOLUTION IN INDIA
INDEX
CHAPTER CONTENTS PAGE NO.
S
1 Introduction 1-3
2 Profile 4-6
3 Review of literature
4 Data Analysis and interpretation
5 Observations and Conclusions
6 Suggestions
7 Bibliography
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ATM REVOLUTION IN INDIA
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ATM REVOLUTION IN INDIA
1.Introduction
Automated Teller Machine (ATMs) has gained prominence as a delivery channel for banking
transactions in India. Banks have been deploying ATMs to increase their reach. As at the
end of December 2007, the number of ATMs deployed in India was 32,342
From first day of April 2009, entire ATM network is now available to customers from any
bank for transactions for no fee at all, irrespective of the banks in which they have their
accounts, now customers will not be levied any fee on cash withdrawals using ATM and debit
card issued by other banks. This will in turn increase usage of ATMs in India.
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ATM REVOLUTION IN INDIA
More people are now moving towards using the automated teller machines (ATM) for their
banking needs. According to a survey by Banknet India, 95% people now prefer this modern
channel to traditional mode of banking. Almost 60% people use an ATM at least once a week.
Increased ATM usage is also helped by the fact that customers have now the flexibility of
using ATMs of other banks, as most of the banks are part of major interbank networks like
National Financial Switch (NFS), Cashtree and cashnet. The interbank networks have brought
together ATMSs of several banks so that consumers would gain access to any of the
participating banks ATMs. Banks find it cheaper to pay membership fees to these networks as
against setting up additional units in expensive to deploy areas.
ATMs are now seen to be more than mere cash dispensing machines. Customers use ATMs to
recharge their mobile phone prepaid connections, pay their utility bills even Mutual fund
transactions making them at par with flexibility given in internet banking only more
secure. Of the value-added services provided at ATMs, bill payment is the most used service,
followed by prepaid mobile talk-time recharges. However, still about one third of the
respondents do not use any value-added services at ATMs.
The ATM market in India is not yet saturated. Though the concentrations of ATMs are greater
in metros, the demand is increasing for other cities and even rural areas. ATMs per million
people approximately are 33 units are very low. Experts forecast that the growth rate. I
is expected to grow 18 percent up by 2013. Banks going into a self service model
can have huge saving potential for banks and may also increase convenience for
the customers.
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ATM REVOLUTION IN INDIA
2 History
The first Automated Teller Machine (ATM) was introduced in the year 1967 by BNarclays
Bank in Enfield Town in North London. At that time a few would have anticipated excess in
ATMs. Then many years after, the aim was to shift people off the teller lines thus lowering a
banks distribution costs and increase efficiency. But in the 1980s, it was notified that people
continued to visit branches, though not as frequently, so that with the costs of ATMs, overall
distribution costs were actually rising.
Then, in the 1990s, came surcharges, which fuelled the proliferation of off-premises ATMs,
which led in turn to the current overcapacity. There was a slowdown in ATM transactions,
partially because of the consumers reaction to the imposition of purchase. Also by the advent
of surcharging there was a massive growth in the number of ATMs as it offered ATM owners
revenues making it economical to install ATMs where they might not have been placed
otherwise.
As is often the as with inventions, many inventors contribute to the history of an invention. In
the case of the ATM, Don Wetzel invented the first successful and modern ATM in the USA,
however he was not first inventor to create an ATM. In 1939, Luther George Simjian started
patenting an earlier and not-so-successful version of an ATM.
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3.WHAT IS ATM
A cash machine, also known as an automated teller machine[ (ATM, automated banking
machine (ABM), cashpoint, cashline, minibank, bankomat or colloquially hole in the wall is
an electronic telecommunications device that enables the customers of a financial institution to
perform financial transactions, particularly cash withdrawal, without the need for a human
cashier, clerk or bank teller.
According to the ATM Industry Association (ATMIA), there are now close to 3 million cash
machines installed worldwide.
On most modern cash machines, 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).
Using a cash machine, customers can access their bank deposit or credit accounts in order to
make a variety of transactions such as cash withdrawals, check balances, or credit mobile
phones. If the currency being withdrawn from the cash machine is different from that in which
the bank account is denominated the money will be converted at an official exchange rate.
Thus, cash machines often provide the best possible exchange rates for foreign travellers, and
are widely used for this purpose.
4. WHY ATM?
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LITERATURE REVIEW
3.1 Introduction Information Technology (IT) is very powerful in todays world, and financial
institutions are the backbone of the Indian economy. Indian Banking Industry today is in the
midst of an IT revolution. Nearly, all the nationalised banks in India are going for information
technology based solutions. The application of IT in Banks has reduced the scope of
traditional or conventional banking with manual operations.
Nowadays banks have moved from disbursed to a centralised environment, which shows the
impact of IT on banks. Banks are using new tools and techniques to find out their customers
need and offer them tailor made products and services. The impact of automation in banking
sector is difficult to measure.
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ATM REVOLUTION IN INDIA
3) Shere Committee [1995] [7] [8] In 1995,
RBI formed a committee under the chairmanship of K. S. Shere, to study all
aspects relating to electronic funds transfer and propose appropriate
legislation. The Shere committee had recommended framing of RBI (EFT
system) regulations under 59 section 58 of the Reserve bank of India Act
1934 (RBI Act.), amendments to the RBI act and to the bankers book
evidence act, 1891 as short term measures and enacting of a few new acts
such as EFT act, the computer misuse and data protection act etc. as long
term measures.
4) Narasimhan Committee [1998] [9]
In order to examine the various issues related to the technology
upgradation in the banking sector, the Reserve Bank of India appointed
Narasimhan committee in September 1998. The committee consists of
representatives from the Government, Reserve Bank of India, banks and
academic institutions associated with the information technology.
The need for addressing the following issues was also emphasised:-
Encryption on Public Switching Telephone Network (PSTN) lines Admission
of electronic files as evidence Treating Electronic Funds Transfers on par
with crossed cheques / drafts for purposes of Income Tax etc Electronic
Record keeping Provide data protection Implementation of digital
signatures Clarification on payment finality in case of EFT Taking into
consideration the recommendations by various committees appointed by
RBI and guidelines of RBI, banks have started using IT to automate banking
transactions and processes.
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ATM REVOLUTION IN BANKING INDUSTRY
As is often the case with inventions, many inventors contribute to the history of an invention.
In the case of the ATM, Don Wetzel invented the first successful and modern ATM in the
USA, however he was not first inventor to create an ATM. In 1939, Luther George Simjian
started patenting an earlier and not-so-successful version of an ATM.
According to ATM developer and DocuTel employee Don Wetzel, we never did see the ATM
as just a cash dispenser. We thought it had to be a machine that did most of the functions of a
teller including transferring money, taking payments and issuing cash advances. But, nearly 30
years later, the ATM is still not much more than a cash dispenser. In fact, out of the nearly
220000 ATMs installed in the U.S., research shows nearly half provide only cash dispensing
transactions. And, only five percent of the remaining ATMs do anything more than the
original, basic bank account functionseven though consumers are demanding more twenty-
four hour services from their local bank.
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Analysis that can be made from the table and the graph is that the main purpose why people
possess ATM card is to deal with the emergency purpose, 54% of the respondents had
emergency purpose as a reason to possess ATM card 50% of respondents responded
availability as reason and 42% had 24-hour accessibility as reason for processing ATM card.
According to 34% of respondents the processed the ATM card as bank offered the card free.
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Why? The answer is simple
The protocol used by ATMs, which was developed their inception, does not support
additional on-line services such as check cashing, bill payment , money order issuance
and event ticketing.
.
For the first time, communication between four primary channels:
1. The ATM network
2. The credit card networks,
3. The Automated Clearing House (ACH) networks and
4. Cash will interface seamlessly.
With the new platform, ATMs are on their way to becoming electronic convenience kiosks,
capable of event and airline ticketing, electronic bill payment, and connecting to an
alternate host via the internet.
With ATMs becoming such a formidable delivery channel, banks are weighing whether
to configure their ATMs to do more than just standard cash withdrawals.
ATM Magazine
An online magazine aimed at the ATM industry, where you can read about the latest
innovations in ATM technology.
The banks are offering various services like cash withdrawal, fund transfer,
balance enquiry, etc.
6 Services of ATM
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ATM REVOLUTION IN INDIA
The following are the features available on Banks ATMs, which can be accessed from
anywhere at anytime.
Cash Withdrawals:
A customer can withdraw upto Rs. 15000/- on a single day on his account. In this, the
Fast Cash option shows prefixed amounts, which a customer can choose from, and
Ultra Fast Cash option to withdraw Rs.3000/- at one time.
Balance enquiry:
Customer can know the ledger balance and available balance with his account.
Mini statement:
Customer gets a receipt printout of his last 8 transactions and the balance.
Deposit cash/ cheques:
Available in all full function ATMs, customer can deposit both cash and cheques in the
ATM. Cash deposited in ATMs will be credited to the account on the same day and
cheques sent for clearing on the next working day.
Funds transfer:
Customer can transfer funds from one account to the linked account in the same
branch.
Cheque book request:
Request for a cheque book from ATMs and their concerned branch will dispatch its
such that it reaches the customer within 10 working days.
PIN Change:
The customer change the Personal Identification Number (PIN) of the ATM or debit
card.
Payments:
This is the latest feature on banks ATMs, its functionality can be used for payment of
bills, donating to temples/ trusts or making airtime recharges for prepaid mobile
phones.
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ATM REVOLUTION IN INDIA
ATM cards comes in two types debit cards and credit cards.
Debit cards are mostly used in ATMs, and it offers you to withdrawal cash which you have in
your savings account. Vise versa from credit card you could credit money from your account.
But in todays topic we will discourse about the process of withdrawal money from ATM
through your card.
Now first insert your ATM card in the ATM machine.(you may see a blinking green light in
the machine, where you have to put your card.) please mind to insert your card as the picture
shows; otherwise the machine could not be able to read your card.
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ATM REVOLUTION IN INDIA
Step 2 : Select your language. This is the most easiest task to do I think. ...
This is the most easiest task to do I think. Select the language you like.
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ATM REVOLUTION IN INDIA
You can see now many types of options like Withdraw Money, Deposit Money,
Balance Enquiry, Bill Pay etc. For withdrawal cash you have to chose Withdraw
Money option.
ATM screen will show various types of account. Select your account type that may be
saving or current etc.
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ATM REVOLUTION IN INDIA
It is also a easy task. Chose the amount you want to withdrawal. But make sure that the
amount you are entering is not more than your main balance.And press correct option.
Now comes the most interesting part. The money comes from the cash dispenser
machine. Take your money before 30 second.
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8 Principle of ATM
ATM - originally designed for WAN communications, but quickly adapted for LANs
as well, ends this historical separation and forms a universal platform for data communication,
In both ATM LAN AND ATM WAN networks the data transport is achieved via connection-
oriented communication paths, which are set up though high-speed switching systems. These
ATM switches perform the cell routing from the input ports of the switch to the destination
port in real time and in parallel for the ports.
For data transport ATM uses packets with a fixed length of 53 bytes, the so-called
cells. These cells can be processed significantly faster and more efficiently in switching
systems than data packets of variable length. Because of the cell structure, a massive parallel
architecture of ATM switching systems is possible. Since all cells have the same length, all
data units which wait at the input ports of a switch for transportation at a given time, can be
routed simultaneously to their destination port.
ATM can handle all of today's data services (telephone, data, video-broadcast and
interactive) in an efficient way.
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ATM REVOLUTION IN INDIA
8 Function of ATM
The first ATM cards gave consumers access to their checking, savings, and share draft
accounts only at teller machines owned by their bank, credit union, or savings and loan.
People commonly call this kind of card an ATM card, cash card, or banking card, or they use
the name that their bank, credit union, or regional network has given to the card.
When regional ATM networks were created, they linked together the ATMs of different
institutions and offered consumers access to their money in other neighborhoods and nearby
cities, towns, and states. (A list of many ATM networks names and where they operate appears
near the end of this brochure.) At the same time, two national networks -Cirrus and plus -
emerged, expanding ATM card access to cash, first nationwide, then around the world.
Currently, these are the only two brands that offer a full range of ATM services worldwide.
ATM cards provide a convenient way of getting cash, making deposits and transfers, and
verifying account balances. It is also easy to tell where you can use the card by simply
matching the logos on your ATM card with those displayed on the ATM itself.
More recently, many ATM cards have been enhanced so that you can shop with the cards at
merchants that sign up with the same networks that give the cards wide access to ATMs. (A
list of many of these shopping networks also appears near the end of this brochure.) Currently
there is only one international service, called Maestro*, that lets card work at participating
merchants both in the United States and in more than 50 countries.
Grocery stores and gas stations were among the first retailers in the United States to install the
small number pads, also called PIN pads that you may have noticed at the checkout counter or
on the gas pump. It is these devices that make shopping with many ATM cards possible.
Another ATM card service makes ATM cards more useful by greatly expanding the number of
retail locations that accept the cards for payment. ATM cards with the logo of one of two of
the major card brands MasterCard or Visa- can be used to make purchases anywhere these
cards are accepted. Today, these kinds of cards are accepted at some 3 minion places in the
United States and 9 million more worldwide. Currently, these are the only two major
card brands that offer this service.
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9 ATM On Internet
ATM will become an increasingly important technology not only in corporate environments
but also within the realm of the Internet. Graphics-and video-intensive applications
necessitates higher speeds. By current standards , high -speed refers to networks that operate
at 155Mbps.A typical ATM switch can between 16 and 64 ATM devices. Although a single
ATM switch has finite capacity, switches can be interconnected to form a larger network.
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10. Limitation Of ATM
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RECORD KEEPING REQUIREMENTS:
ATM cards make it possible to overdraft your bank accounts so they require that you keep
careful record of your spending. With an ATM card it is vital to know what your checking
account balance is at all times. The overdraft fees associated with bank accounts are high
enough that the consequences of overdrafting even by a small amount are quite serious.
HIDDEN FEES:
Hidden fees seen to be lurking around every corner of the financial world. If you are not using
an ATM that is affillated with your bank or credit union then you will likely have to pay a fee.
Although many banks strive to have conveniently located ATM machines. Using any ATM
machine not associated with your bank can deplete your bank account balance.
EASE OF OVERSPENDING:
While ATM cards make shopping simple by boiling the process down to the simple swipe of a
card, they also promote overspending. When you shop with cash you know instantly where
you stand financially and how much money remains with a debt or ATM card it becomes
difficult to monitor how much is being spent and how much money is left until the dreaded
card decline or you are hit with an overdraft charge.
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11. Advantages Of ATM
MAKING A PURCHASE:
Lets say you have planned to buy a desk lamp. You need all your cash for other things and
dont have your checkbook with you. At the entrance to the store, you notice an ATM
network logo that matches the logo on you card. You decide to use your ATM card to pay.
When you present the lamp to the cashier, you will be asked how you would like to pay for
the purchase. You offer your ATM card. The cashier will confirm that your card is accepted
by the store, and if it is, the following will occur:
1. You will be asked to slide your card through a dot that reads the information contained
in the magnetic stripe on the back of your card.
2. The cashier will then enter the amount of the purchase.
3. You will punch in your PIN, or secret code.
4. The cashier will press a key that initiates an automatic phone call to your bank or
credit union. This confirmed, your bank or credit union automatically deducts the
purchase amount from your account, just like a check. You will receive a receipt of the
transaction, if you want one, when the sale is completed. Make sure you record and
subtract this amount from your account immediately.
AN ATM CARD WILL BE ACCEPTED FAR MORE READILY THAN
AN OUT-OF-STATE CHECK:
When you use an ATM card to make purchases, its easy to tell where it is accepted just
by matching the logos on your card with those at stores that accepted the cards. And the
number of locations that accept ATM cards is constantly expanding, enabling you to stop
in more and more places without cash and cheque.
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Your ATM cards can be a useful tool in helping you develop good money management
habits if you follow these five simple steps:
Established a monthly budget.
1. Stick to your spending limits and track your expenses routinely and carefully.
2. Save your sales and ATM receipts and immediate- deduct purchases and other
transactions from your chequebook or your account register. Be sure to note any fees.
3. Promptly balance your chequebook against your monthly account statement, which lists
all of your purchases and fees.
4. Use your monthly itemized statement as a systematic way to manage your spending
habits, and determine whether your budget is realistic.
If you use your ATM card to shop, you can get all the convenience of using a card for
purchases, but without being charged interest. However, if you have an ATM card
thats attached ton a checking account with an overdraft line of credit and you
overdraw your account using the card, your bank or credit union will charge interest on
the amount you overdraw, just as they would with a check. If your overdraft protection
is provided by a link to your savings or other account, you may not incur interest
charges. Check with your bank or credit union.
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WHETHER YOU USE YOUR PIN OR SIGN A SALES SLIP, YOURE
ASSURED CONFIDENTIALITY:
The only information provided to the store by your bank or credit union when you
make a purchase with your ATM card is whether or not the transaction is approved and
the amount of the purchase. The store does not have access to your account
information, address or telephone number, or any other information that may be
printed on your check.
WHEN A MAJOR CREDIT CARD LOGO IS ON YOUR ATM CARD :
If you have an ATM card that also has on it one of two of the major credit card logos
mentioned previously, your purchase will be handled as if you were using a credit card,
except for three important differences:
I. First, the purchase amount will be deducted automatically from your account
like when you write a check rather than being billed to you at the of the
month.
II. Secondly, typically, youll pay not interest charges, since youre using your
own money on deposit, not borrowing it. (However, there may be other fees
associated with using this card, an issue addressed later in this brochure.)
III. Third, you will usually sign for the purchase instead of punching in your PIN.
However, since this is your ATM card, if a store has installed PIN pads to
accept your PIN, and it accepts one of the other logos on your card, the store
clerk may ask to use your PIN instead of signing.
ATM CARDS CAN GIVE YOU MORE CONTROL IF USED WISELY:
With an ATM card and a PIN or personal identification number you can virtually set
your own branch hours depositing and withdrawing money from your accounts
whenever you wish at your bank or credit union. Whats more ATM cards already give
you access to your money at ATMs located not only at all of your banks locations, but
also at other banks and in stores, airports, office buildings, and street corners across the
United States and worldwide.
YOUR ATM CARD IS BECOMING EVEN MORE USEFUL:
But wide access to ATMs is just the beginning. Technology is enabling banks and credit
unions to introduced new services that allow you to pay for things by making your ATM
card work like a check. This latest improvement can offer conveniences and money
management benefits over cash and checks.
SO KEEP TRACK OF YOUR SPENDING:
Always make sure to keep your receipts, and record your purchases in your checkbook
immediately to prevent overdrawing your account. Its important to remember that
regardless of whether you see your PIN or sign your name, all of your withdrawals and
purchases will be automatically deducted from your account.
1.HOW TO GET A BASIC ATM CARD & ONE YOU CAN USE
TO SHOP
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IF ITS NOT OFFERED AUTOMATICALLY, YOU CAN ASK
ABOUT IT:
Most banks and credit unions across the country offer ATM cards. They are usually connected
to a checking or share draft account. When you open an account, you may automatically be
given an ATM card. But if you havent been offered a card, you can ask for one.
You may also want to ask about any additional services available on the card. For example,
most ATM cards can be used for cash withdrawals and other transactions at ATMs in the
United States and around the world. Your bank or credit union may offer with your account the
additional service that allows you to see your ATM card to make purchases by using your PIN
or signing a receipt.
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ATM REVOLUTION IN INDIA
card. Every time a fee is charged by the bank or credit union issuing the card, the feel with
appear on your monthly statement.
When an ATM card is used to make purchases, a retailer may add a free to your purchase total.
If this happens, the store is required by law to disclose this to you in a display at the checkout
counter. In this case, the fee is added to your purchase amount, not listed separately on your
statement.
Two features can make using ATM cards safer than cash and checks.
First, their use is covered by federal regulations that protect both consumers and the
institutions that issue the cards.
Second, technology protects the information about your account.
Its smart to be aware of these regulations and protections. Here a brief summary of the
safeguards that come with your ATM card and what you must do to take advantage of them.
If you report a lost or stolen ATM card within two business days of discovering the loss or
theft, and report immediately any unauthorized uses of your ATM card that you find on your
monthly statement, your liability is limited by federal regulations to $50. If you do not report
the loss or theft within two days, you could be responsible for up to$500.
If you suspect that your ATM card has been used fraudulently, you must report it to your bank
or credit union within 60 days of receiving the statement on which the questionable activity
appears. If you dont act promptly, you could be liable for the full amount that the
unauthorized user was able to withdraw.
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ATM REVOLUTION IN INDIA
Federal regulations also protect you against errors that may occur in your bank account during
or as the result of an electronic transfer of funds. Such errors could include:
Omission of a transaction on your statement. For example, a deposit you make at an
ATM does not appear on your next statement.
Incorrect amount deducted from your account. For example, you discover that a
$14.25 purchase that you made last month your ATM card appears on your ATM card
appears on your monthly statement as $142.50.
Bookkeeping error. You pay for your $36 grocery order with your ATM card and find
that the total amount has been deducted from your account twice.
Receipt of incorrect amount. You request $100 from your checking account at an
ATM, but receive only $90.
If you suspect that a mistake has been made in your account, immediately call the bank
or credit union where you have the account. You may be asked to follow up your
phone call with a written report of the suspect error.
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13. Nature Of ATM
1.ATM NETWORKS
ATM is a standard recognized throughout the world, which provides for the first time a
method for universal information exchange, independent of the end-system and the type of
information (data, audio, and video).The architecture of ATM (53 byte cells) supports the
design of massive parallel
Communication architectures and enables the implementation of networks with transfer rates
in the gigabit range. With the high-speed networks, it is possible to send huge quantities of
data generated by the latest applications (video mail, interactive TV, virtual reality, etc)
ATM is suitable for local area networks as well as wide area networks. The ability of
ATM to emulate traditional LAN and WAN architectures will ensure a smooth transition from
today's computer network infrastructure to ATM-based high-speed technology.
The intense development efforts being made all major manufacturers of data
communication systems in the area of ATM/B-ISDN are evidence of the strategic importance
to the industry of this new transmission technology. ATM is increasingly being adopted as the
central strategic technology for data communication throughout the industry today.
ATM opens the possibility of designing networks with transmission speeds up to the
physical limits. ATM networks with bandwidths approaching the bandwidth of light (30
Terahertz) are imaginable and ATM switches with processing speeds of up to 1
Tbit/s have already been demonstrated in research laboratories. In ATM we may
have on our doorstep the ultimate transfer mechanism in data communications.
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ATM REVOLUTION IN INDIA
2 ATM - ASYNCHRONOUS TRANSFER MODE:
The main task of the ATM layer is to transport the data passed down to it by the adaptation
layer(AAL) to its intended destination .this makes the ATM layer the transport mechanism in
B-ISDN networks, the information in the ATM layer are 53-byte cells, each of which includes
in its cell header a numerical identifier allocating it to a specific connection .these cell streams
are divided in to two logical hierarchies :Virtual channels and virtual paths. Each cell can be
assigned to be a specific path or channel by reference to their numerical path (VPI,VCI)
contained in its header . VPI/VCI Conversion:
If cells are routed via ATM switches or cross connects ,the VCCI and VPI values applying up
to that point need to converted in to new VPIs or VCIs specifying the cells new destination .
If ATM layer receives n information unit from the AAL layer above it must generate an
appropriate ATM header .It is a central task of the ATM layer to convert network addresses in
the higher levels into the corresponding VPIs and VCI values, the number subscribers are
accessing the physical medium,the GFC field in an ATM cell can be used to control cell
transfer.
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The different AAL types:
To limit the number of different AAL implementations, four service classes have
been defined for the AAL Layer: AALl, AAL2, AAL3/4 and AAL5. The definition of
the various AAL types is based on the following three parameters.
AAL TYPE 1:
The type 1 adaptation layer is used to transmit applications with constant bit rate via
the B-ISDN network. In addition AAL type 1 protocol can transfer structured data in
structured form. Lost or erroneous data is not corrected or repeated. As with all other AAL
types the type 1 ATM adaptation layers consists of segmentation and reassembles sub layer
and convergence of layer.
Mumbai, May 30: 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 ATM 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 utilized 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 ATM network
within the country.
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ATM REVOLUTION IN INDIA
The need of 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 program, he added.
UTI Bank senior VP Hemant Kaul felt that the days of viewing ATM as a propreitory 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 world ATMs, security guards who man the ATMs can be cut down, and
networking obviously is a big cost-cutter, he advised.
Moving on ABN Ambro 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, although currently, there is a restriction in that area.
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ATM REVOLUTION IN INDIA
3%
15% Cash withdrawal 66%
Bal. Inquiry 16%
Bal. Transfer 15%
16% Others 3%
66%
66 out of the 100respondents ie.66% of respondents use the card mainly for cash withdrawal.
16% of the respondents use the card for balance inquiry. Out of 100 respondents 22 customers
use their ATM card for balance transfer ie.22% of the respondents.
5 to 10 min 35 35 35 97
More than 10
3 3 3 100
min
Total 100 100 100
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ATM REVOLUTION IN INDIA
3%
Less then 5 min 62%
62 out of 100 respondents ie.62% of respondents spend less than 5minutes in the queue at
ATM Centres.35% of respondents spend 5 to 10 minutes in the queue at the ATM centre.
It can be analyzed that 71% of respondents take less than 5minutes for transaction at ATM
centre.25% respondents spend 5 to 10 minutes at ATM centre. Only 4 out 100 respondents
ie.4% spend more than 10 minutes for transaction at ATM centre.
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ATM REVOLUTION IN INDIA
Additional Service
28%
36% of the respondents recognize the cash deposit service at their ATM centre deposit service
at their ATM centre.18% of respondents recognize bill payment and 17% recognize phone
banking service at their ATM centre.
From the table and the graph the analysis that can be made are those only 11 respondents that
is only 11% of the respondents were highly satisfied with the ATM service. 39% were very
satisfied 43% were satisfied while 7% were less satisfied. One should work hard to improve
this situation.
Measurement of the secured feeling
How secured you feel
Cumulative
Frequency Percent Valid Percent
Percent
Highly Satisfied 6 6 6 6
Very Satisfied 36 36 36 42
Satisfied 56 56 56 98
Less Satisfied 1 1 1 99
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ATM REVOLUTION IN INDIA
1% 1% 6% Highly Satisfied 6%
Very Satisfied 36%
Satisfied 56%
36% Less Satisfied 1%
56% Not Satisfied 1%
From the graph and the table it was evident that largest share of respondents were satisfied
with the services of ATM. While people who were highly satisfied were 36% and highly
satisfied were a 6%. However the number of respondents who were less satisfied and not
satisfied was 15 respectively.
Sometimes 52 52 52 89
Never 11 11 11 100
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ATM REVOLUTION IN INDIA
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ATM REVOLUTION IN INDIA
Do the ATM centers run out of cash frequency
Cumulative
Frequency Percent Valid Percent
Percent
Always 10 10 10 10
Sometimes 41 41 41 51
Never 49 49 49 100
10%
Always
Sometimes
49% Never
41%
The table and the graph suggest that a whopping 49% respondents say ATM never runs out of
cash, while v41% say it sometimes run out of cash compared to that only a meager 10% say it
runs out of cash always.
Satisfied 56 56 56 85
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ATM REVOLUTION IN INDIA
Neutral 14 14 14 99
Unsatisfied 1 1 1 100
Express feeling
1%
14% Highly Satisfied 29 %
29%
Satisfied 56%
Neutral 14%
Unsatisfied 1%
56%
No 1 2 3
Total 11 39 43 7 100
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ATM REVOLUTION IN INDIA
Cash Withdrawal
45
40
35
Highly Satisfied
30 Very Satisfied
25 Satisfied
20 Less Satisfied
15
10
5
0
Yes No
Out of 22 respondents who use balance inquiry facility are 8 satisfied and are 12 very satisfied
with ATM service; however 2 respondents are less satisfied with ATM service.
No 11 30 32 5 78
Total 11 39 43 7 100
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ATM REVOLUTION IN INDIA
Balance Transfer
35
30
25 Highly Satisfied
Very Satisfied
20 Satisfied
Less Satisfied
15
10
0
Yes No
Out of 11 respondents who are highly satisfied with the ATM service of no one uses balance
transfer facility. Out of 22 respondents who use balance transfer facility 11 are satisfied with
ATM service.
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ATM REVOLUTION IN INDIA
2 DHANLAXMI BANK
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ATM REVOLUTION IN INDIA
48
ATM REVOLUTION IN INDIA
3 AXIS BANK
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ATM REVOLUTION IN INDIA
Summary
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ATM REVOLUTION IN INDIA
FINDINGS AND CONCLUSION
This project was a great experience for me and I really learnt a lot of things from this project.
This project gave us the knowledge and information about ATM machines, banks offering
ATM services and also about the people and their attitudes and perceptions towards ATMs.
I have found,
People want the ATM centers to be very close to their houses or place of work.
People want that they should not be made to wait in queues in front of ATM centers.
If possible the banks should improve the software they use and reduce the time required by the
customers.
ATM centers do not provide additional services like cash deposits, cheques deposits, bill
payments, etc, at all its centers, which many people want but they dont get it and leads to
their dissatisfaction and wherever it is available it is charged.
I have also found in this survey that many of the respondents felt that they were feeling
secured using the ATM card, services and this has led to increased satisfaction level of these
respondents which is a good sign.
I also found from this survey that the almost 70% people are satisfied with the number and
location of the ATM centers. But they still insisted that the number should be increased to give
enhanced service and satisfaction to its customers.
People were happy to say that the ATM centers provides the currency in the denomination they
want and this was as good as dealing with the cashier of the bank where you can tell him
which denomination you want.
Another good finding from this survey was that the ATM centers of bank rarely run out of cash
even though it is one of the largest used ATM centers. About 49% of the respondents said that
it never runs out of cash.
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ATM REVOLUTION IN INDIA
RECOMMENDATIONS
The findings and the conclusions reveal that there is a lot of changes which can be brought
about to improve the perception and satisfaction of the customers towards banks ATM centers.
I recommend that,
Bank should increase the number of ATM centers and at strategic positions.
Software used by the bank should be updated and fast so that people are not made to wait in
the queue.
To increase the customer base and the customer satisfaction the ATM facility should be made
as secured and safe as possible. ICICI ATM is one of the safest but still there is scope for
improvement.
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ATM REVOLUTION IN INDIA
INTRODUCTION TO ICICI BANK - October 12th, 2010
INTRODUCTION TO ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at
March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005 (Rs.
1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches and extension
counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries and affiliates in the areas of investment banking, life and
non-life insurance, venture capital and asset management.
ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border
needs of clients and leverage on its domestic banking strengths to offer products
internationally. ICICI Bank currently has subsidiaries in the United Kingdom and Canada,
branches in Singapore and Bahrain and representative offices in the United States, China,
United Arab Emirates, Bangladesh and South Africa.
ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).
As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct
and Ethics for its directors and employees.
At April 4, 2005, ICICI Bank, with free float market capitalization of about Rs. 308.00 billion
(US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock
exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited
in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the
initiative of the World Bank, the Government of India and representatives of Indian industry.
The principal objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI
transformed its business from a development financial institution offering only project finance
to a diversified financial services group offering a wide variety of products and services, both
directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI
become the first Indian company and the first bank or financial institution from non-Japan
Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities, and would create the
optimal legal structure for the ICICI group's universal banking strategy.
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ATM REVOLUTION IN INDIA
The merger would enhance value for ICICI shareholders through the merged entity's access to
low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services.
The merger would enhance value for ICICI Bank shareholders through a large capital base and
scale of operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank.
The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the
High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI
group's financing and banking operations, both wholesale and retail, have been integrated in a
single entity.
Mode of calculation of
minimum Monthly
MAB is the simple average of day-end balances for a calendar month.
average balance
(MAB)
Issue of Duplicate
Rs.100 per statement at branch or Customer Care (non-IVR), Rs. 50 per statement through Net b
Statement
Issue of pass book Nil on request at base branch where account is maintained.
Rs.50 per D.D. up to Rs.10,000;Rs.3 per thousand rupees or part thereof for DD of more than Rs.
DD- Issue
subject to a minimum of Rs.75 and maximum of Rs. 15,000
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ATM REVOLUTION IN INDIA
Common ICICI Bank savings account facilities for all products except for Wealth Management / ICICI Bank Private Bank
unless specified product-wise
DD - Cancellation /
For Instrument value upto Rs.200 Nil
Duplicate /
For Instrument value above Rs.200 - Rs.100
Revalidation
Rs.50 for PO of upto Rs.10,000, For PO above Rs.10,000- Rs.2.50 per thousand rupees or part t
subject to a minimum of Rs.75 and maximum of Rs.15000
PO-Issue
For Senior Citizen, Student & Rural locations : For amounts upto Rs.10,000 Rs.40, For am
above Rs.10,000 till Rs.50,000 Rs.60, For amounts above Rs.50,000 Rs.2.50 per thousand ru
part thereof (maximum of Rs.15,000)
PO - Issue by deposit Rs.150 per PO for amounts up to Rs.50,000, For PO above Rs. 50,000 Rs.4 per thousand rupees
of cash thereof, subject to a minimum of Rs.150 and maximum of Rs.15000
PO - Cancellation /
For Instrument value upto Rs.200 Nil
Duplicate /
For Instrument value above Rs.200 - Rs.100
Revalidation
NEFT Charges -
Nil
Inward
RTGS-Inward Nil
IMPS-Inward Nil
DD - Cancellation /
Duplicate / Rs 100 per DD
Revalidation
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ATM REVOLUTION IN INDIA
Common ICICI Bank savings account facilities for all products except for Wealth Management / ICICI Bank Private Bank
unless specified product-wise
Additional charges for DD issued on Correspondent Banks when the amount of DD purchased by a single purchaser in a day at a
location exceeds certain limits:
ECS charges
Rs.350 for one return in a month; thereafter, Rs.750 per return (financial reasons) in the
ECS Debit Returns
month.
Cheque Collection
Nil
Local
Cheque Returns
Cheque issued by Rs.350 for one cheque return per month; Thereafter, Rs.750 per return in the same month for fin
customer reasons Rs.50 for non-financial reasons except for signature verification
Outstation cheque
Rs.150 plus other bank charges at actuals per cheque.
deposited by customer
Debit Card
For Coral Debit Card Joining Fee of Rs 499/- plus service tax and annual fee of Rs 499/- plus ser
Enrolment fee
Nil For All Other Debit Card
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ATM REVOLUTION IN INDIA
Common ICICI Bank savings account facilities for all products except for Wealth Management / ICICI Bank Private Bank
unless specified product-wise
Nil for transactions above Rs. 400; 2.5% subject to a minimum of Rs. 2 for transactions up to Rs.
(Applicable only when ICICI Bank HPCL Debit Card is swiped on ICICI Bank terminals)
purchases
At non-HPCL outlets:
Decline of transaction
at other bank ATMs or
point of sale (POS) due Rs. 25 per transaction
to insufficient balance
in the account
Debit Card de -
Rs. 100 per request
hotlisting
Rs. 50 per certificate for balance in Savings Account and Fixed Deposit Account
Balance Certificate
Rs.100 per certificate for balance in INR and the equivalent amount in USD in Savings Account a
Fixed Deposit Account
Interest Certificate Rs 50 per certificate for more than one copy for a financial year.
Nil for closure within 30 days of account opening, Rs.500 for closure during 31 days to one yea
Account closure
after one year of account opening
Retrival of old
transactional
Upto 1 year old Rs 50/- per record; More than 1 year old Rs 100/- per record
documents / Enquiries
related to old records
Use of
Rs 100 or actuals whichever is higher
Fax/Telephone/Modem
A charge of Rs. 100/- will be levied. The charge will be Rs. 300/- in case the deposit amount is ab
Penalty on Deposit of 500/-. Repeat instances of cash deposits through cheque drop box will attract an enhanced charge
cash in collector box 500/- for any amount. For any other exceptional transactions which are not part of the services o
by ICICI Bank, a charge will be levied as specified by the bank from time to time.
Rs 50 per cheque and Rs100 for range of cheques covered in single mandate.No charge is levied
Stop Payment charges
payment request is made through Internet Banking and Customer care (IVR).
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ATM REVOLUTION IN INDIA
Common ICICI Bank savings account facilities for all products except for Wealth Management / ICICI Bank Private Bank
unless specified product-wise
Standing Instructions
Execution charge
involving payment As per remittance, plus Rs. 25 towards out-of -pocket expenses
through DD/PO, etc.
(Note: Setting-up charges,amendment charges and excution charges are not applicable in the case of standing Instructions for tra
from one account of ICICI Bank to another account of ICICI Bank whether the two accounts belong to the same person or to diff
persons.)
Speed clearing charges Upto Rs 1 Lakh Nil; above Rs 1 Lakh Rs 150/- per instrument
Lockers
Type of Locker
Type of Locker
Metro / Urban / Semi Urban Rural
Locker rates vary for different branches, hence customers are requested to get in touch with
respective branch
Locker rates vary for different branches, hence customers are requested to get in touch with respective
branch
Note: Taxes at prevailing rates as per Govt rules shall be applicable over and above the mentioned
charges.The charges indicated above are subject to period revision.
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ATM REVOLUTION IN INDIA
With ICICI Bank Mobile Banking discover quick, simple and convenient way to take command of your
bank account, on your mobile phone.
Our mobile banking services work with almost all types of handsets and help you access your ICICI
Bank account anytime, anywhere.
A quick and easy registration is all you need to avail ICICI Bank Mobile Banking services. Get started
with Mobile Banking. Register Now!
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ATM REVOLUTION IN INDIA
iMobile
Discover the most comprehensive mobile banking app with over 150 services today. Get complete
control of your bank account now on mobile. Transfer funds, pay bills, book tickets, recharges, open a
deposit and do a lot more.
Pockets by ICICI Bank is a unique Digital Bank. Its first offering is a wallet a virtual place to store
your money and use it for various transactions like mobile recharge, send money, send gifts, pay bills
and many more. Whats more, the cool user app interface can be personalised as you like and it lets
you transact in a snap. Furthermore, there is also an option of getting a zero balance savings account.
and users get to try more than 100 servicesmaking it a must-have mobile banking app.
SMS Banking
You do not need a smart phone or a data plan activated on your mobile phone to avail our Mobile
Banking services. Our SMS Banking services allow you to pay bills, recharge prepaid services and
avail banking services by sending a simple SMS.
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ATM REVOLUTION IN INDIA
m.icicibank.com
m.icicibank.com gives you the convenience of banking while on the move. Enjoy Internet banking
services such as fund transfer, bill pay, prepaid mobile /DTH recharge, manage your account and avail
mobile banking services anywhere and at anytime.
Mobile Money
Mobile Money is an account on your mobile phone where your mobile number itself is the account
number. Mobile Money accounts are offered by ICICI Bank in association with telecom network
providers. Some mobile banking features that can be availed through Mobile Money account are
Deposit Money, Prepaid Recharge, Transfer Funds, Pay Bills, Withdraw Cash, Pay Merchants.
ICICI Bank has launched DMRC Metro Card recharge facility through mRupee outlets of MMPL (A
subsidiary of Tata Teleservices Limited) in Delhi & NCR region. This mobile banking service lets you
recharge your metro card instantly!
Call to Pay
A simple phone call is all it takes to pay your utility bills, recharge any prepaid mobile or DTH
connection through our Call to Pay service.
IMPS
Immediate Payment Service is an interbank electronic instant mobile money transfer service through
mobile phones. Our IMPS service helps you access your Bank Account and transfer funds instantly.
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ATM REVOLUTION IN INDIA
Dial *99# (NUUP)
ICICI Bank presents National Unified USSD Platform (NUUP) - a simple and convenient way to access
your account from mobile without internet connection or a smart phone. Using NUUP service, you can
transfer funds and get access to your mobile banking details such as account balance and mini
statement. Simply dial *99# from your mobile to access your account instantly. You will be
required to enter an IFS code, please enter ICIC as IFS code.
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ATM REVOLUTION IN INDIA
Bibiliography
BOOK REFERENCES
Innovation in banking & insurance
Financial services management DIPAK ABHYANKAR
NEWSPAPER
TIMES OF INDIA
DNA (DAILY NEWS ANALYSIS)
WEBILIOGRAPHY:
1. http://www.icicibank.com
2. http://inventors.about.com
3. http://www.techmall.com
4. http://www.swadhan.com
5. http://www.dhanbank.com
6. http://www.axisbank.com
63