"Study of Atm Revolution in India: " Submitted by Pathari Hemangi Kishor

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]
PADMASHREE ANNASAHEB JADHAV BHARTIYA SAMAJ UNNATI MANDALS
B.N.N. COLLEGE
DHAMANKAR NAKA, BHIWANDI, 421302

SUBMITTED TO
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2016-2017
UNDER THE GUIDANCE OF
Ms. SHRIVANI YENNAM
1
A PROJECT REPORT
ON
STUDY OF ATM REVOLUTION IN INDIA
SUBMITTED BY
T.Y.B.Com (B&I) [Semester V]
PADMASHREE ANNASAHEB JADHAV BHARTIYA SAMAJ UNNATI MANDALS
B.N.N. COLLEGE
DHAMANKAR NAKA, BHIWANDI, 421302

SUBMITTED TO
UNIVERSITY OF MUMBAI
ACADEMIC YEAR
2016-2017
UNDER THE GUIDANCE OF
Ms. SHRIVANI YENNAM
2
Padmashree Annasaheb Jadhav Bhartiya Samaj Unnati Mandals
B.N.N.College, Bhiwandi.
(Arts, Science & Commerce) Dist.Thane 421 305
SELF FUNDED COURSES
Bachelor of Banking and Insurance (B.B.I.)
Est. June 1966
CERTIFICATE
This is to certify that, MISS. PATHARI HEMANGI KISHOR . (Roll

No.11) of T.Y.B Com (B&I), B.N.N College, Semester V (Academic Year 2016
- 2017) has successfully completed the project entitled STUDY OF ATM
REVOLUTION IN INDIA and submitted the Project Report in partial
fulfillment of the requirement for the award of the Degree of B.Com (Banking &
Insurance sem.-V) of University of Mumbai.
Ms. Shrivani Yennam Dr. Suvarna T. Rawal Dr. Ashok D. Wagh

(Project Guide) (Co-ordinator) (Principal)
Examiner: - 1._______________________
College Seal
3
DECLARATION
I, Miss PATHARI HEMANGI KISHOR (Roll No.11) of

TY.B.Com.(Banking and Insurance) Semester V, studying in B.N.N.
College, Bhiwandi, hereby declare that the information contained in
the project titled STUDY OF ATM REVOLUTION IN INDIA is
true and correct to the best of my knowledge and belief.
________________________

T.Y.B Com (B&I)
PLACE: BHIWANDI
DATE:
4
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
debt of gratitude. It is my foremost duty to express my sincere gratitude towards my mentor,
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
successful completion of my project work.
5
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
6
7
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.
8
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.
9
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.
10
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?
Reasons for ATM

Increased bandwidth and real-time responsiveness.
Advantages over Ethernet networks.
Limitations of Token Ring and FDDI networks.
High performance of ATM networks.
ATM is a world wide recognized standard, with which a universal information
exchange can be realized for the first time, independent of the type of end system and
service (data, video, audio).
ATM is suitable for LANs as well as WANs.
ATM is able to handle all existing information services simultaneously and efficiently.
Since ATM is scalable and therefore available in all speed classes.
As a general rule the maximum achievable BW for copper
11
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.
The literature available to the researcher on the application of Information technology in

Indian banks are classified according to the related topics as mentioned below: 1.
Technological development in banking sector 1. Application of IT in banking 2. IT framework
for Indian banking 3. Technological developments in cooperative banks 4. Indian banking
sector : challenges and opportunities
1) Dr. C. Rangarajan Committee [1983] [5]

Dr. Rangarajan committee had drawn up in 1983-84 the first blue print for
computerisation and mechanisation in banking industry and looked into
modalities of drawing up a phased plan for mechanisation for the banking
industry covering period 1985-89. The committee in its report in 1984
recommended introduction of computerisation and mechanisation at
branch, regional office / zonal office and head office levels of banks.
In 1988[6] another committee was constituted under the chairmanship of

Dr. Rangarajan for making plans for computerisation for the next five years
from 1990-94 for the banking industry. It identified the purpose of
computerisation as improvement in customer service, decision making,
house keeping and profitability. The committee observed that banking is a
service industry and improved efficiency will lead to a faster rate of growth
in output and help to expand employment all around. The work force in the
banking industry must, therefore, look upon computerisation as a means to
improve customer service and must welcome it in that spirit.
2) W.S. Saraf Committee [1994] [7] [8] In 1994
, the Governor, Reserve bank of India had appointed a committee on
technology issues under the chairmanship of W. S. Saraf. The committee
looked into technological issues related to the payment system and to
make recommendations for widening the use of modern technology in the
banking industry. The Saraf committee recommended to set up institutions
for electronic funds transfer system in India. The committee also reviewed
the telecommunication system like use of BANKNET and optimum
utilization of SWIFT by the banks in India.
12
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 committee dealt with the issues on technology upgradation and

observed that the most of the technology that could be considered suitable
for India in some form or the other has been introduced in some diluted
form or as a pilot project, but the desired success has not been achieved
because of the reasons inter-alia lack of clarity and certainty on legal
issues. The committee also suggested implementation of the necessary
legislative changes, keeping in the view the recommendations of Shere
committee.
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.
13
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.
Cash Technologies Inc. Introduces New Transaction Processing

System to Revolutionize the Traditional 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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Important reason for possessing ATM Card
Dichotomy Label Count Responses % of cases
Bank offered free 34 18.7 34

Emergency purpose 54 29.7 54
Availability of many
50 27.5 50
ATM centers
24 hours availability
42 23.1 42
of cash
Other reasons 2 1.1 2
Total Responses 180 100 182
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.
Reason for possessing ATM Card
Bank offered free 19%

1% Emergency purpose 30%
19%
23% Availability of many ATM
centeres 27%
24 hours availability of
cash 23%
30% Other reasons 1%
27%
15
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.
ATM INDUSTRY STATUS IN INDIA

In India ATM is still a new technology. With the emergence of private sector banks like
ICICI bank, IDBI bank, HDFC bank, etc. the number of ATM centers has increased
tremendously. There are presently all types of banks offering ATM services. For
example State Bank Of India (a public sector bank), ICICI bank (a private
bank), Citibank (a foreign bank), Greater Bombay CO-OP Bank (a co-op
bank).
The banks are offering various services like cash withdrawal, fund transfer,
balance enquiry, etc.
6 Services of ATM
16
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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7.How To Use ATM
ATMS, which stands for Automated Teller Machine , are an easy

Way to access your bank account from almost anywhere. If your
new to them,dont worry. Although they may appear
Daunting to use, all the instructions needed to operate them appear
Right on the machine.
There are few steps to withdrawal cash from ATM:
Step 1 : Insert Card. Insert Card. ...
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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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.
Step 3 : Enter your PIN. Enter your pin. ...
19
Step 4 : Transaction Type. ...
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.
Step 5 : Account Type. ...
ATM screen will show various types of account. Select your account type that may be
saving or current etc.
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Step 6 : Enter Amount. ...
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.
Step 7 : Take Your Money. ...
Now comes the most interesting part. The money comes from the cash dispenser
machine. Take your money before 30 second.
Step 8: Another Transactions.
If you want another transaction, chose that option.
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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.
22
8 Function of ATM
THE BEGINNING GETTING CASH AT ATMs:
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.
THE NEXT STEP PAYING WITH ATM CARDS:
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.
THE LATEST NEWS SHOPPING WHEREVER SOME MAJOR CARD

BRANDS ARE ACCEPTED:
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.
IP address Binding In An ATM network as in technologies, ATM assigns to each

attached computer a physical address that must used when establishing a virtual circuit .On
one hand because an ATM physical address is larger than an IP address. Thus IP cannot use
static address binding for ATM networks ATM hardware does not support broadcast. Thus IP
cannot use conventional ARP to bind addresses on ATM networks
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10. Limitation Of ATM
YOU CAN ONLY SPEND WHAT YOU HAVE:

When you use your ATM card, whether to withdraw cash or make purchases, you are using
your own money that is on deposit at your bank or credit union. Naturally, you can only use
as much money as you have available. If you have an overdraft line of credit attached to your
account and your purchase with the card exceeds the amount available on deposit, your bank
or credit union will charge interest on the amount you borrow from your overdraft
THERE MAY BE DAILY SPENDING & WITHDRAWAL LIMITS:
Many banks and credit unions set daily limits on ATM purchases and cash withdrawals, as a
deterrent to the use of stolen or fraudulent cards. Often, these two limits are different and
each may vary widely, from a few hundred dollars a day to the entire amount available in
your account. You should ask your bank or credit union whether your ATM card will have
daily withdrawal and spending limits and, if so, what they will be.
While limits of this kind may seem like an inconvenience, they are
there to safeguard you and your money from unauthorized use of your account. They can also
serve to govern your daily spending, helping you to be more disciplined in managing your
money and your spending habits.
25
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.
LOST OR STOLEN CARDS:

Although there are protections out there for identity theft victims, when an ATM card is lost or
stolen it can spell disaster for the card owner. ATM card fell into the wrong hands and be used to
rob your account or make purchases without your knowledge. A the if could use your ATM card
as a Credit card by forging your signature or online purchases simply by knowing your card
number and expiration date. Bank do not offer the same protections on ATM cards as Credit card
so check your financial institution for its policy on unauthorized transactions.
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.
26
11. Advantages Of ATM
USING YOUR ATM CARD TO SHOP MATCHING THE LOGOS:

If you have the logo of one of these card brands on your ATM card and want to use it for
shopping, your ATM card basically works like a check. This kind of card is often called a
money card, cash and check card, check card, or debit card, or it can have a special name
given to it by your bank or credit union. Regardless of its name, this kind of card is still
also your ATM card. Typically, this kind of card does not require the use of a PIN to make
a purchase. You may already carry one of these cards. Look at your card to find out.
Just as the various logos that appear on ATM cards tell you where they can be used to get
cash or make banking can be used to make purchases. Simply match the logos on the store
or at the cash register or just ask whether the store accepts your ATM card. Depending on
which logos you find on your card and whether the store has installed PIN pads, your
purchases can be handled in your PIN, just as you would with a credit card.
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.
27
SMARTER ABOUT ATM CARDS:

As you read this brochure, youll gain a better understanding of how to take advantage
of the conveniences and features of shopping with your ATM card. And youll find the
information you need to use the new service wisely. If you have one of the more than
200 minion ATM cards in circulation today in the United States, yo0u may want to take
it out of your wallet and refer to it as you read along.
USING AN ATM CARD CAN GIVE YOU THE TOOLS TO BE A

SMARTER MONEY MANAGER:
All ATM card purchases and transactions appear as line items on the monthly account
statement you receive from your bank or credit union. Youll find the date of purchases,
the transaction total, and the merchants name. When combined with the receipt that
accompanies each purchase, these clear and complete records make it easier to track
your spending than when you use cash alone.
SMART MONEY MANAGEMENT HABITS:
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.
ATM CARD PURCHASES CAN OFFER CONVENIENCE WITHOUT

INTEREST CHARGES:
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.
28
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.
12. Safety And Security Of ATM

29
1.HOW TO GET A BASIC ATM CARD & ONE YOU CAN USE
TO SHOP
30
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.
2.YOU MAY NEED TO APPLY FOR SOME ATM CARDS:

In the case of an ATM card with a credit card logo on it, your ability to obtain this card will
depend on the practices of the individual bank or credit union. The list below contains the
kinds of things a bank or credit union considers to determine whether you qualify for this
kind of service. You may be required to provide additional information on an application and
undergo a credit check. The length of your relationship with the bank or credit union
The average balance and status of your account
The number of times per year, if any, you overdraw your account
The number of banking products and services you use
Your credit history
3.COSTS INVOLVED IN USING ATM CARDS

The use of ATM cards naturally involves costs to provide the services. As a result, there may
be fees associated with your use of the card. These vary, depending on your relationship with
the institution and whether you are withdrawing cash or making purchases.
If a fee is charged at all, it can vary widely. For example, you could be charged a few cents,
such as a dime, every time you use the card, or you could be charged a flat monthly fee, such
as one dollar per month, or a combination of such fees. In some cases, fees are waived on the
amount you keep on deposit at your bank or credit union. But, keep in mind that fees
can be higher or lower than those cited here. Check with your bank or credit
union.
4.FEES MUST BE DISCLOSED TO YOU:

Along with knowing your available balance, you should be aware of any charges for using the
card. Fees are established band charged by the banks and credit unions that issue the ATM
cards. If a fee is charged, your bank or credit union must filly detail these fees when get your
31
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.
5.QUESTIONS TO ASK WHEN YOU SIGN UP FOR A CARD:

Before you use your ATM card to withdraw cash or shop, you should ask your bank or credit
union about the costs associated with ownership and use of the card. Here are some questions
you might ask:
What are the monthly or annual fees for this card?
What are the per use fees when using this banks or other banks or credit unions
ATMs?
How can I avoid any of these fees?
6.SAFEGUARD THAT PROTECT YOUR CARD AND ITS USE
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.
7. YOURE PROTECTED IF YOUR CARD IS LOST OR STOLEN

AND IF SOMEONE USES YOUR CARD FRADULENT.
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.
8.YOURE PROTECTED FROM BOOKKEEPING ERRORS:
32
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.
33
13. Nature Of ATM
1.ATM NETWORKS
In recent years, computer systems have achieved an almost explosive increase in

performance, such that developments in the field of data communications have been unable to
keep up. Where the processor performance and memory capacity of PCs have grown over the
past ten years by a factor of a hundred, transfer speeds in wide area networks have risen 'only'
by a factor of ten, and in LANs they have been stayed much the same.
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.
34
2 ATM - ASYNCHRONOUS TRANSFER MODE:
Asynchronous Transfer Mode is a communication standard that uses a high-speed form

of packet switching network as the transmission media ATM was developed as a part of the
Broad band Integrated Services Digital Network (BISDN). ATM is intended to utilize the
synchronous optical network (SONET).
Conventional electronic switching machines currently utilize a central processor to
establish switching paths and route traffic though a network. ATM switches, however, will
include self-routing procedures where individual cells containing subscriber data will route
their own way through the ATM switching network in real time using their own address
instead of relying on an external process to establish the switching path (a cell is a short, fixed
length packet of data)
3The ATM layer:
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.
The ATM Adaptation layer (AAL):

The job of the AAL layer is to 'segment' the data streams from the higher
applications layer into 48_byte units of information and to reassemble the original data
streams from ATM from cells .the functions of the ATM, layer depend on the
characteristics of the governing applications -that is, the AAL layer is service
-dependent .it consists of two sub-layers: Convergence Layer (CS) and the
Segmentation and reassemble of Sub-layer(SAR).
35
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.
Real time requirements

Bit rate (constant or variable )
Connection type (connection oriented or Non-connection oriented)
AAL TYPE 0:
AAL type 0 denotes an absence of any AAL function, meaning that AALO is not really an
AAL type in the true sense of the term. The functions of the applications layer are infact
superfluous for any service if the transfer mechanism already based on cells and can therefore
be dispensed with.
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.
14. Scope for ATM in India
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.
36
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.
Purpose for using ATM card

Dichotomy
Name Count Response % of Cases
Label
Cash withdrawal PURCH 97 65.5 97
Balance Inquiry PUR_BAL 24 16.2 24
Balance Transfer PUR_BTRF 22 14.9 22
Others PUR_OTH 5 3.4 5
37
Purpose for using ATM card
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.
How much time customer spends waiting in the queue at ATM

centre
Time spend in queue

Cumulative
Frequency Percent Valid Percent
Percent
Less then 5 min 62 62 62 62
5 to 10 min 35 35 35 97
More than 10
3 3 3 100
min
Total 100 100 100
38
Time spend in queue
3%
Less then 5 min 62%
35% 5 to 10 min 35%

more than 10 min 3%
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.
3.7 Additional services provided by ATM Centre

Dichotomy
Name Count Response % of Cases
Label
Cash Deposit ADD_CD 71 36.8 72.4
Cheque Deposit ADD_CHQ 54 28 55.1
Bill Payment ADD_BP 34 17.6 34.7
Phone Banking ADD_PHB 33 17.1 33.7
Others ADD_OTH 1 0.5 1
Total Response 193 100 196.9
39
Additional Service
1% Cash Deposit 36%

17%
Cheque Deposit 28%
36% Bill Payment 18%
Phone Banking 17%
18%
Others 1%
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
Percent
Highly Satisfied 6 6 6 6
Very Satisfied 36 36 36 42
Satisfied 56 56 56 98
Less Satisfied 1 1 1 99
Not Satisfied 1 1 1 100
Total 100 100 100
40
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.
Do the ATM centers provide the denomination of currency you

require
Provide the denomination of currency
Cumulative
Percent
Always 37 37 37 37
Sometimes 52 52 52 89
Never 11 11 11 100
Total 100 100 100
Provide the denomination of currency

37% of the respondents are satisfied with the denomination of currency provided by the ATM
centers; they say they always receive the denomination of currency they want. However 52%
of the respondents say they sometimes receives the denomination of currency they want, while
11% of respondents say they never get the denomination of currency they want.
41
42
Do the ATM centers run out of cash frequency
Cumulative
Percent
Always 10 10 10 10
Sometimes 41 41 41 51
Never 49 49 49 100
Total 100 100 100
Do the ATM's run out of cash frequently
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.
Express how you feel about ATM centers

Express feeling
Cumulative
Percent
Highly Satisfied 29 29 29 29
Satisfied 56 56 56 85
43
Neutral 14 14 14 99
Unsatisfied 1 1 1 100
Total 100 100 100
Express feeling
1%
14% Highly Satisfied 29 %
29%
Satisfied 56%
Neutral 14%
Unsatisfied 1%
56%
Cash withdrawal * how much satisfied cross tablation count

Highly Very Less
Satisfied Total
Satisfied Satisfied Satisfied
Cash
withdrawal Yes 11 38 41 7 97
No 1 2 3
Total 11 39 43 7 100
44
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.
Balance transfer * how much satisfied Cross

tabulation count
How much Satisfied
Highly Very Less
Satisfied Total
Satisfied Satisfied Satisfied
Balance
Transfer Yes 9 11 2 22
No 11 30 32 5 78
Total 11 39 43 7 100
45
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.
15. Bankers View On ATM

1 ICICI BANK
Information sought from Mr. Sachin Jadhav

1. Major recent frauds in ATMs
If the ATM card is missed and the cardholder have written the code on the pouch then
the person who gets it can misuse it. Its a kind of fraud as the person can take out the
money from the internet. The cardholder must inform the police and must lodge an
FIR.
2. How location of ATMs are decided?
It is decided on the basis of the customer base. It is decided by the management team.
3. Do you provide ATM sharing facility?
Yes they do provide ATM sharing facility. They provide facilities to the customers of
HDFC Bank, DENA Bank etc.
4. ATM service charges
They charge 28 Rs. from their customers as service charges.
46
5. CCTV cameras in ATMs

Yes they have fitted CCTV cameras in their ATM centers.
6. How cash is loaded in ATM machines
it consists of sockets of various denominations loading and unloading takes place from
back office and have some specific programming for it they have inbuilt programs.
2 DHANLAXMI BANK
Information sought from Mr. Abdul Rahman

No any cases of frauds uptil now took place.
Yes they do provide ATM sharing facility.
They not charge anything from their customers as service charges. They provide this
facility free of cost.
Yes they have fitted CCTV cameras in their ATM centers.
They appoint the CMS (Cash Management Service) who loads the cash in the ATM
machines.
7. On what technology does the ATM works?
It does works through the ATM networks such as Euronet. They usually work through
the VISA and MASTERCARD.
47
48
3 AXIS BANK
Information sought from Mr. Darshak shah

No any cases of frauds uptil now took place.
Yes they do provide ATM sharing facility. They provide facilities to all the banks
except the co-operative banks.
They do not charge anything from their customers as service charges. They have card
issuing charges as 107 Rs. that is maintenance fees.
Yes they have inbuilt CCTV cameras in their ATM centers.
They appoint the Cash Management service (CMS) who load 20 lakhs on daily basis in
their ATM machines.
7. On what technology does the ATM works?

It does works on the dibold technology. The two major ATM networks are VISA and
MASTERCARD.
49
Summary
One of the important services provided by the banks today is of ATM

To briefly summarize the process, an automatic teller machine or ATM allows a bank customer
to conduct their banking transactions from almost every other ATM machine in the world. In
the introductory stages, of the ATM, Don Wetzel invented the first successful and modern
ATM in the USA. However he was not the first inventor to create an ATM. In 1939, Luther
George Simjian started patenting an earlier and not so successful version of an ATM. The
concept of the modern ATM first began in 1968, a working prototype came about in 1969 and
Docutel was installed a patent in 1973. The first working ATM was installed in a New York
based chemical bank
50
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.
51
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.
Bank can bring all its services on the ATM machines.

Facilities like cash deposit should also start at the ATM centers.
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.
52
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.
53
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.
Common Service Charges

Common ICICI Bank savings account facilities for all products except for Wealth Management / ICICI Bank Private Bank
unless specified product-wise
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.
Issue of duplicate pass

Rs 100 for issuance and Rs 25 per page for updation
book
Issue of loose cheque

Rs 125 for cheque book of 5 leaves (Rs 25 per leaf)
leaves
Remittance Facilities through own bank
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
DD- Issue by deposit

Rs.4 per thousand rupees or part thereof, subject to a minimum of Rs.100 and maximum of Rs.
of cash
54
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
Upto Rs.10,000 Rs. 2.50 per transaction.

NEFT Charges - Rs.10.001 to Rs.1 lakh Rs. 5 per transaction.
Outward Above Rs. 1 lakh to Rs. 2 lakhs Rs. 15 per transaction.
Above Rs. 2 lakhs - Rs. 25 per transaction.
Rs. 2 lakhs to Rs.5 lakhs Rs. 25 per transaction.

RTGS-Outward
Above Rs. 5 lakhs Rs. 50 per transaction
RTGS-Inward Nil
Upto Rs.1 lakh Rs. 5 per transaction.

IMPS-Outward Rs. 1 lakh to Rs. 2 lakhs Rs. 15 per transaction.
( Max limit per transaction - Rs. 2 lakhs)
IMPS-Inward Nil
Remittance Facilities through other bank
Rs. 50 per DD for amounts upto Rs.1

For DD above Rs.10,000 - Rs.3 per thousand rupees or part thereof subject to minimum
75
DD- Issue and maximum of Rs. 15000
For Rural locations - For amounts upto Rs.10,000-Rs.40, For amounts above Rs.10
Rs.50,000-Rs.60, For amounts above Rs.50,000-Rs.3 per thousand or part thereof (ma
of Rs.15,000)
DD- Issue by deposit

Rs.5 per thousand rupees or part thereof, subject to minimum of Rs.100 and maximum of Rs. 1
of cash
DD - Cancellation /
Duplicate / Rs 100 per DD
Revalidation
55
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:
DD greater than Rs. 10

lac, payable at semi- Re. 1 per thousand rupees
urban location

lac, payable at urban Re. 1 per thousand rupees
location

lac, payable at RBI Re. 1 per thousand rupees
centres
EFT Charges- inward Nil
EFT Charges- outward Nil
ECS charges
Rs.350 for one return in a month; thereafter, Rs.750 per return (financial reasons) in the
ECS Debit Returns
month.
ECS Credit Returns Nil
Charges for certifying

or verifying customer Nil
mandates
Cheque Collection
Nil
Local
Cheque Returns
Local cheque deposited

Rs.100 for every cheque return for financial reasons
by customer
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
Late Payment Charges NA
Replacement Card fees

Rs 200 per card
(Lost / Damaged card)
Surcharge on Fuel At HPCL outlets: (Only HPCL Debit Card)
56
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:
2.5 % of Purchase or Rs. 10 per transaction whichever is higher
Debit Card PIN re-

Rs. 25. [Not applicable if request through Instapin at Branch / Customer Care (IVR)]
generation Charges
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
Cash@POS Rs. 10 per transaction
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
Photo attestation Rs 100 per application/letter
Signature attestation Rs 50 per application/letter
Address confirmation Rs.50 per request
Inoperative account Nil
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).
57
Lien marking and

unmarking of savings Rs.50 for marking of lien. Rs 50 for unmarking of lien.
account
Reissue of Internet user

id or password (Branch
Rs.50 per request
or non IVR Customer
Care)
Standing Instructions
Setting-up-charge Rs. 150 per standing instruction
Amendment charge Rs 25 per amendment
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
1 yr 2yr 3yr 1 yr 2yr 3yr
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.
58
With ICICI Bank Mobile Banking discover quick, simple and convenient way to take command of your
bank account, on your mobile phone.
Mobile Banking has the following advantages:
Convenient way to access your account
Safe and Secure Banking
Convenient way to pay bills (Telephone, electricity & other utilities)
Get exciting offers and discounts
Banking services without internet (SMS Banking & NUUP)
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!
59
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
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.
60
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.
DMRC Metro Card Recharge
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.
61
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.
62
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

"Study of Atm Revolution in India: " Submitted by Pathari Hemangi Kishor

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ATM REVOLUTION IN INDIA

PADMASHREE ANNASAHEB JADHAV BHARTIYA SAMAJ UNNATI MANDALS

DHAMANKAR NAKA, BHIWANDI, 421302

UNDER THE GUIDANCE OF

Ms. SHRIVANI YENNAM

PADMASHREE ANNASAHEB JADHAV BHARTIYA SAMAJ UNNATI MANDALS

DHAMANKAR NAKA, BHIWANDI, 421302

UNDER THE GUIDANCE OF

Ms. SHRIVANI YENNAM

Padmashree Annasaheb Jadhav Bhartiya Samaj Unnati Mandals

Est. June 1966

This is to certify that, MISS. PATHARI HEMANGI KISHOR . (Roll

Ms. Shrivani Yennam Dr. Suvarna T. Rawal Dr. Ashok D. Wagh

I, Miss PATHARI HEMANGI KISHOR (Roll No.11) of

PATHARI HEMANGI KISHOR

debt of gratitude. It is my foremost duty to express my sincere gratitude towards my mentor,

successful completion of my project work.

PATHARI HEMANGI KISHOR

ATM REVOLUTION IN INDIA

Reasons for ATM

As a general rule the maximum achievable BW for copper

The literature available to the researcher on the application of Information technology in

1) Dr. C. Rangarajan Committee [1983] [5]

In 1988[6] another committee was constituted under the chairmanship of

The committee dealt with the issues on technology upgradation and

Cash Technologies Inc. Introduces New Transaction Processing

Important reason for possessing ATM Card

Dichotomy Label Count Responses % of cases

Bank offered free 34 18.7 34

Reason for possessing ATM Card

Bank offered free 19%

ATM INDUSTRY STATUS IN INDIA

7.How To Use ATM

ATMS, which stands for Automated Teller Machine , are an easy

There are few steps to withdrawal cash from ATM:

Step 1 : Insert Card. Insert Card. ...

Step 3 : Enter your PIN. Enter your pin. ...

Step 4 : Transaction Type. ...

Step 5 : Account Type. ...

Step 6 : Enter Amount. ...

Step 7 : Take Your Money. ...

Step 8: Another Transactions.

If you want another transaction, chose that option.

THE BEGINNING GETTING CASH AT ATMs:

THE NEXT STEP PAYING WITH ATM CARDS:

THE LATEST NEWS SHOPPING WHEREVER SOME MAJOR CARD

IP address Binding In An ATM network as in technologies, ATM assigns to each

YOU CAN ONLY SPEND WHAT YOU HAVE:

LOST OR STOLEN CARDS:

USING YOUR ATM CARD TO SHOP MATCHING THE LOGOS:

SMARTER ABOUT ATM CARDS:

USING AN ATM CARD CAN GIVE YOU THE TOOLS TO BE A

SMART MONEY MANAGEMENT HABITS:

ATM CARD PURCHASES CAN OFFER CONVENIENCE WITHOUT

12. Safety And Security Of ATM

2.YOU MAY NEED TO APPLY FOR SOME ATM CARDS:

3.COSTS INVOLVED IN USING ATM CARDS

4.FEES MUST BE DISCLOSED TO YOU:

5.QUESTIONS TO ASK WHEN YOU SIGN UP FOR A CARD:

6.SAFEGUARD THAT PROTECT YOUR CARD AND ITS USE

7. YOURE PROTECTED IF YOUR CARD IS LOST OR STOLEN

8.YOURE PROTECTED FROM BOOKKEEPING ERRORS:

In recent years, computer systems have achieved an almost explosive increase in