Automated Teller Machine of Commercial Banks

BACHELOR OF COMMERCE
BANKING AND INSURANCE
SEMESTER V
2015-16

SUBMITTED BY:

Sumit .S. Gaikwad

ROLL NO - ……

GUIDE NAME
PROF= Naziya
NALANDA EDUCATIONAL FOUNDATION (SANCHALIT)

Dr.Babasaheb Ambedkar College.

Of Arts,Science & Commerce.
Oppsite Railway Station.
Chembur (W) , Mumbai- 400089
1
Automated Teller Machine of Commercial Banks

BACHELOR OF COMMERCE
BANKING AND INSURANCE
SEMESTER V

Submitted
In Partial Fulfillment of the requirements
For the Award of the Degree of
Bachelor of Commerce – Banking & Insurance

.By.

Sumit Gaikwad
ROLL NO. – ….

Dr.Babasaheb Ambedkar College.

Of Arts,Science & Commerce.
Oppsite Railway Station.
Chembur (W) , Mumbai- 400089
2
NALANDA EDUCATIONAL FOUNDATION (SANCHALIT)

Dr.Babasaheb Ambedkar College.

Of Arts,Science & Commerce.
Oppsite Railway Station.
Chembur (W) , Mumbai- 400089

CERTIFICATE

This is to certify that Mr. Sumit S Gaikwad, Third year of

B.Com. Banking & Insurance – Semester V (Academic Year) has
successfully completed the project on Automated teller machine of
Commercial banks under the guidance of Miss. ………………...

Prof Dr..CHHAYA BAKANE (Principal)

3
PROF= NAZIYA (Project guide)

External Examiner

DECLARATION

I, Mr. Sumit .S. Gaikwad the student of B.Com. Banking &

Insurance – Semester V 2015-16 hereby declare that I have
completed this Project on Automated Teller Machine of
Commercial Banks.

The information submitted is true and original to the best of my

knowledge.

_____________________

Student’s Signature Sumit Gaikwad

Roll No. - ……

4
Acknowledgement

I,Mr. Mr. Sumit .S. Gaikwad the student of B.Com. Banking & Insurance –
Semester V 2015-16 hereby thank to Mumbai university to gave me this project.

I also thank my principal of Dr.Babashab Ambedkar college of Arts, Science and

Commerce to find me eligible to do this project.

I also thank my stream co-ordinator, Prof. …………………….who gave me this

opportunity to perform this project.

I thank my guide PROF= NAZIYA who gave me guidance in making of this

project.

Lastly, I thank my friends and relatives who directly or indirectly helped me in

collecting information on this project.

5
Executive summary:

An automated teller machine (ATM), commonly called a cash point and a hole in
the wall in UK English after the trademark of the same name, is a computerized
telecommunications device that provides the clients of a financial institution with
access to financial transactions in a public space without the need for a cashier,
human clerk or bank teller. ATMs are known by various other names
including automatic banking machine, cash machine, and various regional variants
derived from trademarks on ATM systems held by particular banks.
ATMs are placed not only near or inside the premises of banks, but also in
locations such as shopping centers/malls, airports, grocery stores, petrol/gas
stations, restaurants, or anywhere frequented by large numbers of people.
Most ATMs are connected to interbank networks, enabling people to withdraw and
deposit money from machines not belonging to the bank where they have their
account or in the country where their accounts are held .
An ATM is typically made up of devices like CPU, magnetic card reader, display
screen, key buttons, record printer, vault and cash dispenser.
Today the vast majority of ATMs worldwide use a Microsoft OS,
primarily Windows XP Professional or Windows XP Embedded.
Security facilities like camera, CCTVs, fire alarm, thief alarm etc. are also
provided in ATM cabins for securities and safety of users.
As with any device containing objects of value, ATMs and the systems they
depend on to function are the targets of fraud. Fraud against ATMs and people's
attempts to use them takes several forms.

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Contents

Chapter 1........................................................................................................................................................................... 11
INTRODUCTION ........................................................................................................................................................... 11
History of ATM ............................................................................................................................................................... 15
Chapter 2............................................................................................................................................................................ 16
Advantages of ATMs ....................................................................................................................................................... 17
Disadvantages of ATMs .................................................................................................................................................. 18
Chapter 3............................................................................................................................................................................ 19
Financial networks........................................................................................................................................................... 19
Chapter 4............................................................................................................................................................................ 21
Global use of ATM’s ...................................................................................................................................................... 21
Chapter 5............................................................................................................................................................................ 22
Hardware and software of ATM machine. ................................................................................................................ 22
Hardware ........................................................................................................................................................................... 22
Software ............................................................................................................................................................................. 25
Chapter 6............................................................................................................................................................................ 27
Security .............................................................................................................................................................................. 27
Transactional secrecy and integrity ............................................................................................................................. 29
Customer identity integrity ............................................................................................................................................ 30
Device operation integrity ............................................................................................................................................. 31
Customer security ............................................................................................................................................................ 32
Alternative uses ................................................................................................................................................................ 34
Reliability .......................................................................................................................................................................... 37
Chapter 7............................................................................................................................................................................ 39
Fraud made in ATMs ...................................................................................................................................................... 39
Card fraud .......................................................................................................................................................................... 40
Conclusion:........................................................................................................................................................................ 43
Recommendations and suggestions ............................................................................................................................. 44
Annexure : ......................................................................................................................................................................... 45
SBI ATM fraud ............................................................................................................................................................... 45
Fraudulent transaction on lost ICICI debit card .............................................................................................. 46
ICICI Bank ......................................................................................................................................................................... 47

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HISTORY ........................................................................................................................................................................... 48
PRODUCTS AND SERVICES OFFERED BY THE BANK..................................................................................... 50
Deposits ............................................................................................................................................................................. 51
Loans ................................................................................................................................................................................... 54
Cards .................................................................................................................................................................................. 55
Investments ....................................................................................................................................................................... 57
Insurance ............................................................................................................................................................................ 58
NRI Services...................................................................................................................................................................... 60
Controversy ...................................................................................................................................................................... 61
SUBSIDIARY COMPANIES ........................................................................................................................................... 64
Address .............................................................................................................................................................................. 64
Bibliography ....................................................................................................................................................................... 65

8
9
ATM- Automated Teller
Machine
2011

Sumit Gaikwad
ROLL NUMBER :
TY B.Com BBI

10
Chapter 1

INTRODUCTION
An automated teller machine (ATM), commonly called a cash point and a hole in
the wall in UK English after the trademark of the same name, is a computerized
telecommunications device that provides the clients of a financial institution with
access to financial transactions in a public space without the need for a cashier,
human clerk or bank teller. ATMs are known by various other names
including automatic banking machine, cash machine, and various regional variants
derived from trademarks on ATM systems held by particular banks.
On most modern ATMs, the customer is identified by inserting a plastic ATM
card with a magnetic stripe or a plastic smart card with a chip, that contains a
unique card number and some security information such as an expiration date.
Authentication is provided by the customer entering a personal pin.
Using an ATM, customers can access their bank accounts in order to
make cash withdrawals, credit card cash advances, and check their account
balances as well as purchase prepaid cellphone credit. If the currency being
withdrawn from the ATM is different from that which the bank account is
denominated in (e.g.: Withdrawing Japanese Yen from a bank account containing
US Dollars), the money will be converted at a wholesale exchange rate. Thus,
ATMs often provide the best possible exchange rate for foreign travelers and are
heavily used for this purpose as well.
The idea of self-service in retail banking developed through independent and
simultaneous efforts in Japan, Sweden, the United States and the United Kingdom.
In the USA, Luther George Simjian has been credited with developing and
building the first cash dispenser machine. There is strong evidence to suggest that
Simjian worked on this device before 1959. The rollout of this machine, called
Bankograph, was delayed a couple of years. This was due in part to Simjian's
Reflectone Electronics Inc. being acquired by Universal Match Corporation. An
11
experimental Bankograph was installed in New York City in 1961 by the City
Bank of New York, but removed after 6 months due to the lack of customer
acceptance. The Bankograph was an automated envelope deposit machine
(accepting coins, cash and cheques) and it did not have cash dispensing features.
A first cash dispensing device was used in Tokyo in 1966. Although little is known
of this first device, it seems to have been activated with a credit card rather than
accessing current account balances.

Reg Varney, first to use a cashpoint in the UK

Plaque commemorating installation of world's first bank cash machine

In simultaneous and independent efforts, engineers in Sweden and Britain

developed their own cash machines during the early 1960s. The first of these that
was put into use was by Barclays Bank in Enfield Town in North London, United
Kingdom, on 27 June 1967. This machine was the first in the UK and was used by
English comedy actor Reg Varney, at the time so as to ensure maximum publicity
for the machines that were to become mainstream in the UK. This instance of
the invention has been credited to John Shepherd-Barron of printing firm De La
Rue, who was awarded an OBE in the 2005 New Year's Honours List. His design

12
used special cheques that were matched with a personal identification number, as
plastic bank cards had not yet been invented.
The Barclays-De La Rue machine (called De La Rue Automatic Cash System or
DACS) beat the Swedish saving banks' and a company called Metior's (a device
called Bankomat) by nine days and Westminster Bank’s-Smith Industries-
Chubb system (called Chubb MD2) by a month. The collaboration of a small start-
up called Speytec and Midland Bank developed a third machine which was
marketed after 1969 in Europe and the USA by the Burroughs Corporation. The
patent for this device (GB1329964) was filed on September 1969 (and granted in
1973) by John David Edwards, Leonard Perkins, John Henry Donald, Peter Lee
Chappell, Sean Benjamin Newcombe & Malcom David Roe.
Both the DACS and MD2 accepted only a single-use token or voucher which was
retained by the machine while the Speytec worked with a card with a magnetic
stripe at the back. Hence all this these worked on various principles
including Carbon-14 and low-coercivity magnetism in order to make fraud more
difficult. The idea of a PIN stored on the card was developed by a British engineer
working in the MD2 named James Goodfellow in 1965 (patent GB1197183 filed
on 2 May 1966 with Anthony Davies). The essence of this system was that is it
enabled the verification of the customer with the debited account without human
intervention. This patent is also the earliest instance of a complete “currency
dispenser system” in the patent record. This patent was filled on 5 March 1968 in
the USA (US 3543904) and granted on 1 December 1970. It had a profound
influence on the industry as a whole. Not only did future entrants into the cash
dispenser market such as NCR Corporation and IBM licence Goodfellow’s PIN
system, but a number of later patents references this patent as “Prior Art Device”.
After looking first hand at the experiences in Europe, in 1968 the networked ATM
was pioneered in the US, in Dallas, Texas, by Donald Wetzel, who was a
department head at an automated baggage-handling company called Docutel. On
September 2, 1969, Chemical Bank installed the first ATM in the U.S. at its branch
in Rockville Centre, New York. The first ATMs were designed to dispense a fixed
amount of cash when a user inserted a specially coded card. A Chemical Bank
advertisement boasted "On Sept. 2 our bank will open at 9:00 and never close
again." Chemicals' ATM, initially known as a Docuteller was designed by Donald
Wetzel and his company Docutel. Chemical executives were initially hesitant
about the electronic banking transition given the high cost of the early machines.
13
Another one of the first ATMs was located in Columbus, Ohio at the Buckeye
Federal Savings and Loan Bank. Additionally, executives were concerned that
customers would resist having machines handling their money. In 1995,
the Smithsonian National Museum of American History recognised Docutel and
Wetzel as the inventors of the networked ATM.
ATMs first came into use in December 1972 in the UK; the IBM 2984 was
designed at the request of Lloyds Bank. The 2984 CIT (Cash Issuing Terminal)
was the first true Cashpoint, similar in function to today's machines; Cashpoint is
still a registered trademark of Lloyds TSB in the UK. All were online and issued a
variable amount which was immediately deducted from the account. A small
number of 2984s were supplied to a US bank. Notable historical models of ATMs
include the IBM 3624 and 473x series, Diebold 10xx and TABS 9000 series,
and NCR 50xx series.

14
History of ATM

The first mechanical cash dispense was built and developed by Luther George
simjian and installed in 1939 in New York, city bank of New York.

Thereafter the history of ATMs for every 25 years, De La Rue developed the first
electronic ATM, which was installed first in Enfield town in North London on 27 th
June 1967 by Barclays Bank.

The idea of a pin stored in a card was developed by the British engineer James
Goodfellow in 1965.

15
Chapter 2

LOCATION OF ATM’S

ATMs are placed not only near or inside the premises of banks, but also in
locations such as shopping centers/malls, airports, grocery stores, petrol/gas
stations, restaurants, or anywhere frequented by large numbers of people. There are
two types of ATM installations: on- and off-premise. On-premise ATMs are
typically more advanced, multi-function machines that complement a bank
branch's capabilities, and are thus more expensive. Off-premise machines are
deployed by financial institutions and Independent Sales Organizations (ISOs)
where there is a simple need for cash, so they are generally cheaper mono-function
devices. In Canada, ABMs not operated by a financial institution are known
as "White Label ABMs".
In North America, banks often have drive-thru lanes providing access to ATMs.
Many ATMs have a sign above them called a topper, indicating the name of the
bank or organization owning the ATM, and possibly including the list of ATM
networks to which that machine is connected.

16
Advantages of ATMs

ATM provides 24hours money transactions service.

Saves time and money.

Easy to access.

From anywhere withdraw and deposit money.

High speed transaction.

Secure transaction.

17
Disadvantages of ATMs

Chances of fraud.

Sometimes network is not proper.

Sometimes we cannot withdraw money for lack of money in cartridge.

The technology is not reached in many places.

Difficult to use by people in rural areas.

18
Chapter 3

Financial networks

Most ATMs are connected to interbank networks, enabling people to withdraw and
deposit money from machines not belonging to the bank where they have their
account or in the country where their accounts are held (enabling cash withdrawals
in local currency).

ATMs rely on authorization of a financial transaction by the card issuer or other

authorizing institution via the communications network. This is often performed
through an ISO 8583 messaging system.

Many banks charge ATM usage fees. In some cases, these fees are charged solely
to users who are not customers of the bank where the ATM is installed; in other
cases, they apply to all users.

In order to allow a more diverse range of devices to attach to their networks, some
interbank networks have passed rules expanding the definition of an ATM to be a
terminal that either has the vault within its footprint or utilizes the vault or cash
drawer within the merchant establishment, which allows for the use of a scrip cash
dispenser.

19
A Diebold 1063ix with a dial-up modem visible at the base

ATMs typically connect directly to their host or ATM Controller via

either ADSL or dial-up modem over a telephone line or directly via a leased line.
Leased lines are preferable to POTS lines because they require less time to
establish a connection. Leased lines may be comparatively expensive to operate
versus a POTS line, meaning less-trafficked machines will usually rely on a dial-up
modem. That dilemma may be solved as high-speed Internet VPN connections
become more ubiquitous.

20
Chapter 4

Global use of ATMs

There are no hard international or government-compiled numbers totaling the
complete number of ATMs in use worldwide. Estimates developed
by ATMIA place the number of ATMs in use currently at over 1.8 million.
For the purpose of analyzing ATM usage around the world, financial institutions
generally divide the world into seven regions, due to the penetration rates, usage
statistics, and features deployed. Four regions (USA, Canada, Europe, and Japan)
have high numbers of ATMs per million people. and generally slowing growth
rates. Despite the large number of ATMs, there is additional demand for machines
in the Asia/Pacific area as well as in Latin America. ATMs have yet to reach high
numbers in the Near East/Africa.
The world's most northerly installed ATM is located
at Longyearbyen, Svalbard, Norway.
The world's most southerly installed ATM is located at McMurdo
Station, Antarctica.
While India claims to have the world's highest installed ATM at Nathu La
Pass, India installed by the Union Bank of India at 4310 meters, there are higher
ATMs installed in Nagchu County, Tibet at 4500 meters by Agricultural Bank of
China.
Israel has the world's lowest installed ATM at Ein Bokek at the Dead Sea, installed
independently by a grocery store at 421 meters below (Mediterranean) Sea level.
While ATMs are ubiquitous on modern cruise ships, ATMs can also be found on
some US Navy ships.

21
Chapter 5

Hardware and software of ATM machine.

Hardware

A block diagram of an ATM

An ATM is typically made up of the following devices:

CPU (to control the user interface and transaction devices)
Magnetic card reader (to identify the customer)
PIN Pad (similar in layout to a Touch tone or Calculator keypad), often
manufactured as part of a secure enclosure.
Secure cryptoprocessor, generally within a secure enclosure.
Display (used by the customer for performing the transaction)
Function key buttons (usually close to the display) or a Touchscreen (used to select
the various aspects of the transaction)
Record Printer (to provide the customer with a record of their transaction)
Vault (to store the parts of the machinery requiring restricted access)

22
Housing (for aesthetics and to attach signage to)
Recently, due to heavier computing demands and the falling price of computer-like
architectures, ATMs have moved away from custom hardware architectures
using microcontrollers and/or application-specific integrated circuits to adopting
the hardware architecture of a personal computer, such as, USB connections for
peripherals, ethernet and IP communications, and use personal computer operating
systems.
Business owners often lease ATM terminals from ATM service providers.

Two Loomis employees refilling an ATM at the Downtown SeattleREI

The vault of an ATM is within the footprint of the device itself and is where items
of value are kept. Scrip cash dispensers do not incorporate a vault.
Mechanisms found inside the vault may include:
Dispensing mechanism (to provide cash or other items of value)
Deposit mechanism including a Check Processing Module and Bulk Note Acceptor
(to allow the customer to make deposits)
Security sensors (Magnetic, Thermal, Seismic, gas)
Locks: (to ensure controlled access to the contents of the vault)
Journaling systems; many are electronic (a sealed flash memory device based on
proprietary standards) or a solid-state device (an actual printer) which accrues all
records of activity including access timestamps, number of bills dispensed, etc. -

23
This is considered sensitive data and is secured in similar fashion to the cash as it
is a similar liability.
ATM vaults are supplied by manufacturers in several grades. Factors influencing
vault grade selection include cost, weight, regulatory requirements, ATM type,
operator risk avoidance practices, and internal volume requirements.
ATM manufacturers recommend that vaults be attached to the floor to prevent
theft.

24
Software

A Suncorp Metway TM running OS/2

With the migration to commodity PC hardware, standard commercial "off-the-
shelf" operating systems and programming environments can be used inside of
ATMs. Typical platforms previously used in ATM development
include RMX or OS/2. Today the vast majority of ATMs worldwide use
a Microsoft OS, primarily Windows XP Professional or Windows XP Embedded.
A small number of deployments may still be running older versions such
as Windows NT, Windows CE or Windows 2000. Notably, Vista was not widely
adopted in ATMs. There is a computer industry security view or consensus that
desktop operating systems have greater risks as operating systems for cash
dispensing machines than other types of operating systems like (secure) real-time
operating systems (RTOS). RISKS Digest has many articles about cash machine
operating system vulnerabilities.

A Wincor Nixdorf ATM running Windows 2000.

Linux is also finding some reception in the ATM marketplace. An example of this
is Banrisul, the largest bank in the south of Brazil, which has replaced theMS-

25
DOS operating systems in its ATMs with Linux. Banco do Brasil is also migrating
ATMs to Linux.

With the move to a more standardized software base, financial institutions have
been increasingly interested in the ability to pick and choose the application
programs that drive their equipment.

With the onset of Windows operating systems and XFS on ATM's, the software
applications have the ability to become more intelligent. This has created a new
breed of ATM applications commonly referred to as programmable applications.
These types of applications allows for an entirely new host of applications in which
the ATM terminal can do more than only communicate with the ATM switch. It is
now empowered to connected to other content servers and video banking systems.

With the move of ATMs to industry-standard computing environments, concern

has risen about the integrity of the ATM's software stack.

26
Chapter 6

Security
Security, as it relates to ATMs, has several dimensions. ATMs also provide a
practical demonstration of a number of security systems and concepts operating
together and how various security concerns are dealt with.
Physical

A Wincor Nixdorf Procash 2100xe Frontload that was opened with an angle
grinder
Early ATM security focused on making the ATMs invulnerable to physical attack;
they were effectively safes with dispenser mechanisms. A number of attacks on
ATMs resulted, with thieves attempting to steal entire ATMs by ram-raiding. Since
late 1990s, criminal groups operating in Japan improved ram-raiding by stealing
and using a truck loaded with a heavy construction machinery to effectively
demolish or uproot an entire ATM and any housing to steal its cash.
Another attack method, plofkraak, is to seal all openings of the ATM
with silicone and fill the vault with a combustible gas or to place an explosive
inside, attached, or near the ATM. This gas or explosive is ignited and the vault is
opened or distorted by the force of the resulting explosion and the criminals can
break in. This type of theft has occurred in
the Netherlands, Belgium, France, Denmark, Germany and Australia. This type of
attack can be completely prevented by using gas explosion prevention devices.

27
Modern ATM physical security, per other modern money-handling security,
concentrates on denying the use of the money inside the machine to a thief, by
means of techniques such as dye packs and smoke canisters.
A common method is to simply rob the staff filling the machine with money. To
avoid this, the schedule for filling them is kept secret, varying and random. The
money is often kept in cassettes, which will dye the money if incorrectly opened.

28
Transactional secrecy and integrity

A Triton brand ATM with a dip style card reader and a triple DES keypad

The security of ATM transactions relies mostly on the integrity of the

secure cryptoprocessor: the ATM often uses commodity components that are not
considered to be "trusted systems".
Encryption of personal information, required by law in many jurisdictions, is used
to prevent fraud. Sensitive data in ATM transactions are
usually encryptedwith DES, but transaction processors now usually require the use
of Triple DES. Remote Key Loading techniques may be used to ensure the secrecy
of the initialization of the encryption keys in the ATM. Message Authentication
Code (MAC) or Partial MAC may also be used to ensure messages have not been
tampered with while in transit between the ATM and the financial network.

29
Customer identity integrity

A BTMU ATM with a palm scanner (to the right of the screen)

There have also been a number of incidents of fraud by Man-in-the-middle attacks,

where criminals have attached fake keypads or card readers to existing machines.
These have then been used to record customers' PINs and bank card information in
order to gain unauthorized access to their accounts. Various ATM manufacturers
have put in place countermeasures to protect the equipment they manufacture from
these threats.
Alternate methods to verify cardholder identities have been tested and deployed in
some countries, such as finger and palm vein patterns, and facial
recognition technologies. However, recently, cheaper mass production equipment
has been developed and is being installed in machines globally that detect the
presence of foreign objects on the front of ATMs, current tests have shown 99%
detection success for all types of skimming devices.

30
Device operation integrity

ATMs that are exposed to the outside must be vandal and weather resistant
Openings on the customer-side of ATMs are often covered by mechanical shutters
to prevent tampering with the mechanisms when they are not in use. Alarm sensors
are placed inside the ATM and in ATM servicing areas to alert their operators
when doors have been opened by unauthorized personnel.
Rules are usually set by the government or ATM operating body that dictate what
happens when integrity systems fail. Depending on the jurisdiction, a bank may or
may not be liable when an attempt is made to dispense a customer's money from an
ATM and the money either gets outside of the ATM's vault, or was exposed in a
non-secure fashion, or they are unable to determine the state of the money after a
failed transaction. Bank customers often complain that banks have made it
difficult to recover money lost in this way, but this is often complicated by the
bank's own internal policies regarding suspicious activities typical of the criminal
element.

31
Customer security

Dunbar Armored ATM Techs watching over ATMs that have been installed in
a van

In some countries, multiple security cameras and security guards are a common
feature. In the United States, The New York State Comptroller's Office has
criticized the New York State Department of Banking for not following through on
safety inspections of ATMs in high crime areas.
Critics of ATM operators assert that the issue of customer security appears to have
been abandoned by the banking industry; it has been suggested that efforts are
now more concentrated on deterrent legislation than on solving the problem of
forced withdrawals.
At least as far back as July 30, 1986, critics of the industry have called for the
adoption of an emergency PIN system for ATMs, where the user is able to send
a silent alarm in response to a threat. Legislative efforts to require an emergency
PIN system have appeared in Illinois, Kansas and Georgia, but none have
succeeded as of yet. In January 2009, Senate Bill 1355 was proposed in the Illinois
Senate that revisits the issue of the reverse emergency PIN system. The bill is
again resisted by the banking lobby and supported by the police.
In 1998 three towns outside of Cleveland Ohio, in response to an ATM crime
wave, adopted ATM Consumer Security Legislation requiring that a 9-1-1 switch
be installed at all outside ATMs within their jurisdiction. Since the passing of these
laws 11 years ago, there have been no repeat crimes. In the wake of an ATM
Murder in Sharon Hill, Pennsylvania, The City Council of Sharon Hill passed an
ATM Consumer Security Bill as well, with the same result. As of July 2009, ATM

32
Consumer Security Legislation is currently pending in New York, New Jersey, and
Washington D.C.
In China, many efforts to promote security have been made. On-premises ATMs
are often located inside the bank's lobby which may be accessible 24 hours a day.
These lobbies have extensive CCTV coverage, an emergency telephone and a
security guard on the premises. Bank lobbies that are not guarded 24 hours a day
may also have secure doors that can only be opened from outside by swiping your
bank card against a wall-mounted scanner, allowing the bank to identify who
enters the building. Most ATMs will also display on-screen safety warnings and
may also be fitted with convex mirrors above

33
Alternative uses

Two NCR Personas 84 ATMs at a bank inJersey dispensing two types of pound
sterling banknotes: Bank of England noteson the left, and States of Jersey notes on
the right
Although ATMs were originally developed as just cash dispensers, they have
evolved to include many other bank-related functions. In some countries,
especially those which benefit from a fully integrated cross-bank ATM network
(e.g.: Multibanco in Portugal), ATMs include many functions which are not
directly related to the management of one's own bank account, such as:
Deposit currency recognition, acceptance, and recycling
Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal
fees, taxes, etc.)
Printing bank statements
Updating passbooks
Loading monetary value into stored value cards
Purchasing
Postage stamps.
Lottery tickets
Train tickets
Concert tickets
Movie tickets
Shopping mall gift certificates.

34
Games and promotional features
Fastloans
CRM at the ATM
Donating to charities
Cheque Processing Module
Adding pre-paid cell phone / mobile phone credit.
Paying (in full or partially) the credit balance on a card linked to a specific current
account.
Increasingly banks are seeking to use the ATM as a sales device to deliver pre
approved loans and targeted advertising using products such as ITM (the
Intelligent Teller Machine) from Aptra Relate from NCR. ATMs can also act as an
advertising channel for companies to advertise their own products or third-party
products and services.
In Canada, ATMs are called guichets automatiques in French and sometimes
"Bank Machines" in English. The Interac shared cash network does not allow for
the selling of goods from ATMs due to specific security requirements for PIN
entry when buying goods. CIBC machines in Canada, are able to top-up the
minutes on certain pay as you go phones.

A South Korean ATM with mobile bank port and bar code reader
35
Manufacturers have demonstrated and have deployed several different
technologies on ATMs that have not yet reached worldwide acceptance, such as:
Biometrics, where authorization of transactions is based on the scanning of a
customer's fingerprint, iris, face, etc. Biometrics on ATMs can be found in Asia.
Cheque/Cash Acceptance, where the ATM accepts and recognise cheques and/or
currency without using envelopes Expected to grow in importance in the US
through Check 21 legislation.
Bar code scanning
On-demand printing of "items of value" (such as movie tickets, traveler's cheques,
etc.)
Dispensing additional media (such as phone cards)
Co-ordination of ATMs with mobile phones
Customer-specific advertising
Integration with non-banking equipment

36
Reliability

An ATM running Microsoft Windows that has crashed

Before an ATM is placed in a public place, it typically has undergone extensive
testing with both test money and the backend computer systems that allow it to
perform transactions. Banking customers also have come to expect high reliability
in their ATMs, which provides incentives to ATM providers to minimize machine
and network failures. Financial consequences of incorrect machine operation also
provide high degrees of incentive to minimize malfunctions.
ATMs and the supporting electronic financial networks are generally very reliable,
with industry benchmarks typically producing 98.25% customer availability for
ATMs and up to 99.999% availability for host systems. If ATMs do go out of
service, customers could be left without the ability to make transactions until the
beginning of their bank's next time of opening hours.
This said, not all errors are to the detriment of customers; there have been cases of
machines giving out money without debiting the account, or giving out higher
value notes as a result of incorrect denomination of banknote being loaded in the
money cassettes. Errors that can occur may be mechanical (such as card transport
mechanisms; keypads; hard disk failures; envelope deposit
mechanisms); software (such as operating system; device
driver; application);communications; or purely down to operator error.

37
An ATM running OS/2 that has crashed
To aid in reliability, some ATMs print each transaction to a roll paper journal that
is stored inside the ATM, which allows both the users of the ATMs and the related
financial institutions to settle things based on the records in the journal in case
there is a dispute. In some cases, transactions are posted to an electronic journal to
remove the cost of supplying journal paper to the ATM and for more convenient
searching of data.
Improper money checking can cause the possibility of a customer
receiving counterfeit banknotes from an ATM. While bank personnel are generally
trained better at spotting and removing counterfeit cash, the resulting ATM money
supplies used by banks provide no absolute guarantee for proper banknotes, as
the Federal Criminal Police Office of Germany has confirmed that there are
regularly incidents of false banknotes having been dispensed through bank
ATMs. Some ATMs may be stocked and wholly owned by outside companies,
which can further complicate this problem. Bill validationtechnology can be used
by ATM providers to help ensure the authenticity of the cash before it is stocked in
an ATM; ATMs that have cash recycling capabilities include this capability.

38
Chapter 7

Fraud made in ATMs

As with any device containing objects of value, ATMs and the systems they
depend on to function are the targets of fraud. Fraud against ATMs and people's
attempts to use them takes several forms.
The first known instance of a fake ATM was installed at a shopping mall
in Manchester, Connecticut in 1993. By modifying the inner workings of
a Fujitsu model 7020 ATM, a criminal gang known as The Bucklands Boys were
able to steal information from cards inserted into the machine by customers.
In some cases, bank fraud could occur at ATMs where by the bank accidentally
stocks the ATM with bills in the wrong denomination, therefore giving the
customer more money than should be dispensed. The result of receiving too much
money may be influenced by the card holder agreement in place between the
customer and the bank.
In a variation of this, WAVY-TV reported an incident in Virginia Beach of
September 2006 where a hacker who had probably obtained a factory-default
admin password for a gas station's white label ATM caused the unit to assume it
was loaded with $5 USD bills instead of $20s, enabling himself—and many
subsequent customers—to walk away with four times the money they said they
wanted to withdraw. This type of scam was featured on the TV series The Real
Hustle.
ATM behavior can change during what is called "stand-in" time, where the bank's
cash dispensing network is unable to access databases that contain account
information (possibly for database maintenance). In order to give customers access
to cash, customers may be allowed to withdraw cash up to a certain amount that
may be less than their usual daily withdrawal limit, but may still exceed the
amount of available money in their account, which could result in fraud.

39
Card fraud

ATM lineup

A big queue at an ATM in Masalli,Azerbaijan

In an attempt to prevent criminals from shoulder surfing the customer's PINs, some
banks draw privacy areas on the floor.
For a low-tech form of fraud, the easiest is to simply steal a customer's card. A
later variant of this approach is to trap the card inside of the ATM's card reader
with a device often referred to as a Lebanese loop. When the customer gets
frustrated by not getting the card back and walks away from the machine, the
criminal is able to remove the card and withdraw cash from the customer's account.
Another simple form of fraud involves attempting to get the customer's bank to
issue a new card and stealing it from their mail.

40
Some ATMs may put up warning messages to customers to not use them when it
detects possible tampering
The concept and various methods of copying the contents of an ATM card's
magnetic stripe on to a duplicate card to access other people's financial information
was well known in the hacking communities by late 1990.
In 1996 Andrew Stone, a computer security consultant from Hampshire in the UK,
was convicted of stealing more than £1 million by pointing high definition video
cameras at ATMs from a considerable distance, and by recording the card
numbers, expiry dates, etc. from the embossed detail on the ATM cards along with
video footage of the PINs being entered. After getting all the information from the
videotapes, he was able to produce clone cards which not only allowed him to
withdraw the full daily limit for each account, but also allowed him to sidestep
withdrawal limits by using multiple copied cards. In court, it was shown that he
could withdraw as much as £10,000 per hour by using this method. Stone was
sentenced to five years and six months in prison.
By contrast, a newer high-tech method of operating sometimes called card
skimming or card cloning involves the installation of a magnetic card reader over
the real ATM's card slot and the use of a wireless surveillance camera or a
modified digital camera to observe the user's PIN. Card data is then cloned onto a
second card and the criminal attempts a standard cash withdrawal. The availability

41
of low-cost commodity wireless cameras and card readers has made it a relatively
simple form of fraud, with comparatively low risk to the fraudsters.
In an attempt to stop these practices, countermeasures against card cloning have
been developed by the banking industry, in particular by the use of smart
cards which cannot easily be copied or spoofed by unauthenticated devices, and by
attempting to make the outside of their ATMs tamper evident. Older chip-card
security systems include the French Carte Bleue, Visa Cash, Mondex, Blue from
American Express[93] and EMV '96 or EMV 3.11. The most actively developed
form of smart card security in the industry today is known as EMV 2000 or EMV
4.x.
EMV is widely used in the UK (Chip and PIN) and other parts of Europe, but when
it is not available in a specific area, ATMs must fallback to using the easy–to–copy
magnetic stripe to perform transactions. This fallback behaviour can be exploited.
However the fallback option has been removed by several UK banks, meaning if
the chip is not read, the transaction will be declined.
In February 2009, a group of criminals used counterfeit ATM cards to steal $9
million from 130 ATMs in 49 cities around the world all within a time period of 30
minutes.
Card cloning and skimming can be detected by the implementation of magnetic
card reader heads and firmware that can read a signature embedded in all magnetic
stripes during the card production process. This signature known as a
"MagnePrint" or "BluPrint" can be used in conjunction with common two factor
authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card
applications.[citation needed]
Another ATM fraud issue is ATM card theft which includes credit card trapping
and debit card trapping at ATMs. Originating in South America this type of ATM
fraud has spread globally. Although somewhat replaced in terms of volume by
ATM skimming incidents, a re-emergence of card trapping has been noticed in
regions such as Europe where EMV Chip and PIN cards have increased in
circulation.

42
Conclusion:

Many technology have been introduced in the planet which gives comfort and ease
to a common man. ATM is one of this research.ATM is a very good technology
which gives comfort to common man by accessing his/her bank accounts rather
going to the bank and standing in a long queue. The response of this technology is
very good. People prefer this technology. It is also much useful for the people who
have their bank branch far than their place. People take many advantages of it.

ATM installed in public places like shopping mall, railway station, airport etc.
helps in increasing the standard of living of people and improve their lifestyle.

43
Recommendations and suggestions

As we can see that the technology over the worldwide is increasing day by day but
with these increments, number of frauds is also increasing. ATMs are also a part of
these technologies and so till now there are many frauds taken place regarding
ATMs. I suggest the concerned authorities to improve the security system and to
also maintain it regularly and properly as there are many ATMs in which a camera
is there but not working or can he hacked or stopped easily by anyone. So this
should be prevented by taking proper measures.

Secondly, there are many areas in our country where ATMs are there but people
residing there do not know to use it. So proper steps should be taken to educate
people to use ATM machine and ATM machine in such areas should be made
simplified in using it. Rural areas are the example of such places.

44
Annexure :

SBI ATM fraud

May 22, 2010

/By p.l.choudhary

I am operating SB account no xxxxxxxxxxx in SBI Kathua (J&K). On 7 Apr 2010

I have gone to Jammu on few days leave. I used my ATM card to withdraw money
from ATM at Bahu Plaza Jammu. Since my ATM card was not being accepted
by the ATM machine AND THE ATM machine was showing as “INVALID
CARD” repeatedly, a smart young boy came to me and asked me whether I need
help. I gave the card to this boy who put some saliva on the back side of the card
and put it in ATM machine but the machine again did not accept. He tried
two three times and finally the card was accepted by the atm mCHINE. He told me
to enter the PIN and did so. In this process he replaced my ATM card and gave me
SBI atm card of some other person. I did not notice any fraud at that point of time.
I used the card again on third day and found that the card which I was having has
been blocked. The details of the card are CTM CUM DEBIT CARD NO
xxxxxxxxxxxxxxxxxxx and its owner is Mr MAHABIR. I immediately contacted
my Bank Manager of SBI Kathua, who informed me that a sum of Rs 80,000/- has
been withdrawn from my account on 07 Apr 10 and 09 Apr 10. I instructed my
bank to block the card immediately and lodged an FIR with Police Station Trikutta
Nagar Jammu on 09 Apr10. I have handed over the Photographs AND videos of
the boy who withdraw money from account but no action has been taken by the
police so far.

On 18 May 10 I got a call from Mr Ramji from Allhabad that his card has been
replaced in the same process and the thief has handed him over my card.

Today one of my Jawan who had gone on leave at Jammu has lost Rs 1,35,000/- in
the same process.

There are a large number of army personnel who are being duped by such people.
The sad state of affairs is that these fraud are taking place in SBI ATMs only as
most of the Army personnel are having salary accounts in SBI only on introduction
of Monthly Pay System through SBI bank.

45
Fraudulent transaction on lost ICICI debit card
April 9, 2010

/By aruna.sree

I forgot my debit card at 9.11 am at Kompally Axis Bank ATM Center.

Immediately after realising the card lost, I have tried so many times to contact
ICICI Bank call center on 040-23128000 to block my card from 10.46am , they
kept me hold for the 1st time 8.00 minutes, 2nd call 2.00 minutes, 3rd call 16.00
minutes and fourth call for 38.00 minutes, after this abruptly call disconnected.
(enclsoing my mobile bill scan copy) After login into my ICICI internet account I
have sent mail to block my card immediately at 10.52 am. After that I have placed
a request for fresh issue of card vide their service request No. SR135246034 at
around 12.10 pm.

I have received sms from the bank that I have made a debit card purchase of
Rs.2,469.00 at around 3.30 pm. Immediately I tried call center of ICICI bank and
registered complaint vide complaint No. 135273066 was lucky enought to get them
on line.

As advised by Bank, I hv lodged complaint at the Madhapur Police station. As

informed by call center I hv courierd my complaint letter along with copy of
complaint given at the police station to their Debit Recon Team, Mumbai. I hv
sent all the details from my mail, i hv received a call that the courier not reached
them. I tracked this document which was delivered to them on 22.03.10 at 12.55
pm.

Eventhough i forgot the debit card, had I got the call center people on line in time
or if they hv taken the action on my mail to block the card immediately sent at
10.52 am, I wouldnot have lost this money.

46
ICICI Bank

ICICI Bank (formerly Industrial Credit and Investment Corporation of India

is a major banking and financial services organization in India. It is the second
largest bank in India and the largest private sector bank in India by market
capitalization. The bank also has a network of 2,016 branches (as on 31 March
2010) and about 5,219 ATMs in India and presence in 18 countries, as well as
some 24 million customers (at the end of July 2007). ICICI Bank offers a wide
range of banking products and financial services to corporate and retail customers
through a variety of delivery channels and specialization subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance, venture capital and
asset management. (These data are dynamic.) ICICI Bank is also the largest issuer
of credit cards in India. ICICI Bank's shares are listed on the stock exchanges
at BSE, NSE, Kolkata and Vadodara (formerly Baroda) ; its ADRstrade on
the New York Stock Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international
balance sheet among Indian banks. ICICI Bank now has wholly owned
subsidiaries, branches and representatives offices in 19 countries, including an
offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada,
Russia and the UK (the subsidiary through which the HiSAVE savings brand is
operated), offshore banking units in Bahrain and Singapore, an advisory branch in
Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices
in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United
Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident
Indian) population in particular.
ICICI reported a 1.15% rise in net profit to 1,014.21 crore on a 1.29% increase in
total income to 9,712.31 crore in Q2 September 2008 over Q2 September 2007.
The bank's CASA ratio increased to 30% in 2008 from 25% in 2007.

47
HISTORY

In 1954, The Industrial Credit and Investment Corporation of India Limited

(ICICI) was incorporated at the initiative of World Bank, the Government of India
and representatives of Indian industry, with the objective of creating a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. In 1994, ICICI established Banking Corporation as
a banking subsidiary. Formerly known as Industrial Credit and Investment
Corporation of India, ICICI Banking Corporation was later renamed as 'ICICI
Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake
normal banking operations - taking deposits, credit cards, car loans etc. In 2001,
ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank,
and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji
Bank (established 1904) in the 1960s. In 2002, The Boards of Directors of ICICI
and ICICI Bank approved the reverse merger of ICICI, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, into ICICI Bank. After
receiving all necessary regulatory approvals, ICICI integrated the group's financing
and banking operations, both wholesale and retail, into a single entity. At the same
time, ICICI started its international expansion by opening representative offices
in New York andLondon. In India, ICICI Bank bought
the Shimla and Darjeeling branches that Standard Chartered Bank had inherited
when it acquired Grindlays Bank.
In 2003, ICICI opened subsidiaries in Canada and the United Kingdom (UK), and
in the UK it established an alliance with Lloyds TSB. It also opened an Offshore
Banking Unit (OBU) in Singapore and representative offices in Dubai and
Shanghai. In 2004, ICICI opened a representative office in Bangladesh to tap the
extensive trade between that country, India and South Africa. In 2005, ICICI
acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn
in assets, head office in Balabanovo in the Kaluga region, and with a branch
in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established
a branch in Dubai International Financial Centre and in Hong Kong. In 2006,
ICICI Bank UK opened a branch in Antwerp, inBelgium. ICICI opened
representative offices in Bangkok, Jakarta, and Kuala Lumpur. In 2007, ICICI
amalgamated Sangli Bank, which was headquartered in Sangli,

48
in Maharashtra State, and which had 158 branches in Maharashtra and another 31
in Karnataka State. Sangli Bank had been founded in 1916 and was particularly
strong in rural areas. With respect to the international sphere, ICICI also received
permission from the government of Qatar to open a branch in Doha. Also, ICICI
Bank Eurasia opened a second branch, this time in St. Petersburg. In 2008, The US
Federal Reservepermitted ICICI to convert its representative office in New
York into a branch. ICICI also established a branch in Frankfurt. In 2009, ICICI
made huge changes in its organisation like elimination of loss making department
and restreching outsourced staff or renegotiate their charges in consequent to the
recession. In addition to this, ICICI adopted a massive approach aims for cost
control and cost cutting. In consequent of it, compesation to staff was not increased
and no bonus declared for 2008-09.
On 23 May ICICI Bank announced that it would merge with Bank of
Rajasthan through a share-swap in a non-cash deal that values the Bank of
Rajasthan at about 3,000 crore. ICICI announced that the merger expand ICICI
Bank's branch network by 25%.
On 18h October 2010, ICICI will inaugurate I-Express, an instant cross-border
money transfer option for Non-Resident Indians (NRIs). This service will be
available through the ICICI Bank's select partners in the Gulf Cooperation Council.

49
PRODUCTS AND SERVICES OFFERED BY
THE BANK

ICICI Bank provides a wide array of banking products and financial services to its
retail and corporate customers. It has a wide variety of delivery channels and
specialized affiliates and subsidiaries that ensure the flow of its offerings in the
areas like investment banking, venture capital, life and non-life insurance and asset
management. This bank is also India's largest credit card issuer. The equity share
of ICICI Bank is listed on various stock exchanges like NSE, BSE, Kolkata Stock
Exchange and Vadodara Stock Exchange etc. Its ADRs are also listed on the New
York Stock Exchange.

ICICI Bank also has the largest international balance sheet among all the banks in
India. It is also expanding its business in the overseas market at an enviable pace.
In Q2 September 2008, ICICI Bank recorded a 1.15% growth in net profit over Q2
September 2007 to reach at Rs. 1,014.21 crores. The current and savings account
(CASA) ratio of the bank also went up from 25% in 2007 to 30% in 2008.

ICICI Bank offers a host of products and services to its clients, which include
Deposits, Loans, Cards, Investments, Insurance, Demat, NRI Services and Online
Services etc.

50
Deposits

Following deposits are offered:

 Savings Account

 Advantage Deposit

 Special Savings Account

 Life Plus Senior Citizens Savings Account

 Fixed Deposits

 Security Deposits

 Recurring Deposits

 Tax-Saver Fixed Deposit

 Young Stars Savings Account

51
 Child Education Plan

 Bank@Campus

 Salary Account

 Advantage Woman Savings Account

 EEFC Account

 Resident Foreign Currency (Domestic) Account

 Privilege Banking

 No Frills Account

 Rural Savings Account

 People's Savings Account

52
 Self Help Group Accounts

 Outward Remittance

 Freedom Savings Account

 Family Banking

53
Loans

ICICI Bank offers following loan facilities:

 Home Loans

 Loan Against Property

 Personal Loans

 Car Loans

 Two Wheeler Loans

 Commercial Vehicle Loans

 Loans Against Securities

 Loan Against Gold Ornaments

 Pre-approved Loans

54
Cards

ICICI Bank is India's largest issuer of credit cards. It also offers other types of
cards.

The various cards offered by ICICI bank are as below:

 Consumer Cards

 Credit Cards

 Travel Cards

 Debit Cards

 Commercial Cards

 Corporate Cards

 Prepaid Cards

 Purchase Cards

55
 Distribution Cards

 Business Cards

 Merchant Services

56
Investments

ICICI Bank facilitates a range of investment products including :

 ICICI Bank Tax Saving Bonds

 Mutual Funds

 Government of India Bonds

 Initial Public Offers (IPO) by Corporates

 Foreign Exchange Services

 ICICI Bank Pure Gold

 Senior Citizens Savings Scheme, 2004

57
Insurance

ICICI Bank offers various types of insurance. Customers can choose from the
following:

 Home Insurance

 Health Insurance

 Health Advantage Plus

 Family Floater

 Personal Accident

 Travel Insurance

 Individual Overseas Travel Insurance

 Student Medical Insurance

 Motor Insurance

58
 Car Insurance

 Two Wheeler Insurance

 Life Insurance

 ICICI Pru LifeTime Gold

 ICICI Pru LifeState RP

59
NRI Services

Following services are offered to the NRIs :

 Money Transfer

 Bank Accounts

 Investments

 Home Loans

 Insurance

 Loans Against FD

60
Controversy

ICICI Bank has been in focus in recent years because of alleged harassment of
customers by its recovery agents. Listed below are some of the related news links:

 ICICI Bank was fined 55 lakh for hiring goons (known coloquially as
"goondas") to recover a loan. Recovery agents had, allegedly, forcibly dragged
out a youth (who was not even the borrower) from the car, beaten him up with
iron rods and left him bleeding as they drove away with the vehicle. "We hold
ICICI Bank guilty of the grossest kind of deficiency in service and unfair trade
practice for breach of terms of contract of hire-purchase/loan agreement by
seizing the vehicle illegally","No civilised society governed by the rule of law
can brook such kind of conduct" said Justice Kaleem, who was born in
Laddhawala, Muzaffarnagar is the president of the consumer commission.
 Four ICICI loan employees arrested on theft charges in Punjab
 ICICI Bank told to pay 1 lakh as compensation for using unlawful recovery
methods.
 RBI warns ICICI Bank for coercive methods to recover loans
 ICICI Bank drives customer to suicide - Four men including an employee of
ICICI Bank booked under sections 452, 306, 506 (II) and 34 of IPC for abetting
suicide. According to the suicide note they advised him, "If you cannot repay
the bank loan, sell off your wife, your kids, yourself, sell everything at your
home. Even then if you cannot not pay back the due amount, then it's better if
you commit suicide." India biggest private bank has compensated the life by
money
 ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in car-
jackers to recover loans in Goa. A half an hour investigative report on CNN-
IBN's 30 Minutes. The under cover report was executed by CNN-IBN's Special
Investigations Team from Mumbai, led by Ruksh Chatterji
 Family of Y. Yadaiah alleged that he was beaten to death by ICICI Bank’s
recovery agents, for failing to pay the dues. Four persons were arrested in this
case.

61
 A father while talking to Times of India, alleged that "ICICI Bank recovery
agents visited his house and threatened his family. And his son Nikhil
consumed poison because of the tension".
 Oppressed by ICICI Bank's loan recovery agents, Shakuntala Joshi (38),
committed suicide by hanging. The suicide note stated that she was upset with
the ill-treatment meted out by ICICI Bank's recovery agents and had thus
decided to end her life.
 In another case of a suicide it is alleged that ‘goondas’ sent by ICICI Bank
abused Himanshu and his wife in front of the entire residential colony before
taking away his vehicle. Feeling frustrated and insulted, he reportedly
committed suicide.
 C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of
Chemical Technology, was allegedly tortured by recovery agents of ICICI Bank
after he defaulted on his loan.“They humiliated me no end. They ripped my
shirt, shaved my moustache, cut my hair and gave electric shocks on my chest
and even spat on my face" adds Murthy.
 A dozen recovery agents of ICICI Bank, riding on bikes, allegedly forced a
prominent lawyer, Someshwari Prasad, to stop his car. They held Prasad at
gunpoint and also slapped him to force him. A manager of the ICICI Bank
branch, Rakesh Mehta, along with four other employees were arrested.
 In a landmark case, Allahabad High Court had ordered registration of an FIR
against ICICI Bank's branch manager, President, Chairman and Managing
Director on a complaint of 75-year-old widow Prakash Kaur. She had
complained that “goondas” were sent by the bank to harass her and forcibly
took away her truck. When the Supreme Court wanted to know about the
procedure adopted by the Bank, ICICI Bank counsel said notice would be sent
to a defaulter asking him either to pay the instalments or hand over the vehicle
purchased on loan, failing which the agents would be asked to seize it. When
the Bench pointed out that recovery or seizure could be done only legally,
ICICI Bank counsel said, "If we have to go through the legal process it would
be difficult to recover the instalments as there are millions of defaulters".
 Taking strong exception to ICICI Bank's use of 'goondas' against a defaulter,
the president of Consumer Disputes Redressal Forum said, "The fact leaves us
aghast at the manner of functioning and goondaism in which the bank is
involved for a petty amount of 1,889... such attitude is deplorable and sends

62
 chills down the spine....The bank had the option to recover dues through legal
means. They have no legal right to snatch the vehicle in such a manner which
amounts to robbery,". In this case recovery agents pointed a pistol at a defaulter
when he tried to resist. ICICI bank argued that they had taken peaceful
possession of the vehicle "after due intimation to the complainant as he was
irregular in remitting the monthly instalments". But the court found out that the
records proved otherwise.
 Two senior ICICI Bank officials were booked for abducting one Vikas Porwal
from his house and keeping him hostage in the Bank's premises.
 The credit card division of the ICICI Bank allegedly threatened a senior citizen
in Chandigarh with a fictitious arrest warrant on account of a default that never
was.
 A Consumer Commission has asked ICICI Bank MD K V Kamath to appear
before it in respect a complaint. A borrower on protesting against the forceful
dispossession of his car, as seen in the post-incident photographs, was roughed
up and sustained injuries.
 An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of
ICICI Bank.
 There have been several other minor legal cases accusing harassment by ICICI
Bank
 A consumer court imposed a joint penalty of 25 lakh on ICICI Bank and
American Express Bank for making unsolicited calls.

63
SUBSIDIARY COMPANIES

ICICI DIRECT (WWW.ICICIDIRECT.COM)

ICICI LOMBARD (WWW.ICICILOMBARD.COM)

ICICI MONEY2INDIA

ICICI PREDENTUAL LIFE INSURANCE

ICICI NRI

Address
ICICI Bank
ICICI Bank Towers
C - 15, G - Block, Bandra Kurla Complex
Bandra (E)
Mumbai - 400 051
Tel: +91-22-26531414
Fax: +91-22-26531122 / 368 / 212
Web: www.icicibank.com

64
Bibliography

The information used in this project is taken from the following websites:

www.google.com
www.wikipidea.com

65