PROJECT REPORT

ON
____ATM FACILITY OF BANK
BACHELOR OF COMMERCE (BANKING & INSURANCE)
SEMESTER – V
(2017-2018)

SUBMITTED
IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE
AWARD OF DEGREE OF
B.Com (Banking & Insurance)

BY

UPADHYAY SEJAL SANTOSH

ROLL NO. -___44____

BIRLA COLLEGE OF ARTS, SCIENCE &COMMERCE

MURBAD ROAD KALYAN (W)
CERTIFICATE

ii
 BIRLACOLLEGE OF ARTS, SCIENCE, & COMMERCE, KALYAN
(Conducted by Kalyan Citizens’ Education Society)
(Affiliated by University of Mumbai)

BACHELOR OF COMMERCE (BANKING& INSURANCE)

CERTIFICATE
This is to certify that SEJAL SANTOSH UPADHYAY OF T.Y B.COM
(BANKING & INSURANCE) Semester V (2017-2018) has
successfully completed the project on “ATM facility of bank” under the
guidance of Mr. ANIL TIWARI

PROJECT SUPERVISOR:

COURSE CO-ORDINATOR:

INTERNAL EXAMINER

EXTERNAL EXAMINER

PRINCIPAL

iii
 DECLARATION
I, _SEJAL SANTOSH UPADHYAY student of T.Y B.COM (BANKING & INSURANCE)

semester V (2017-2018) hereby declare that I have completed the project on “ATM

FACILITY OF BANK”. I further declare that the information imparted is true and

fair to the best of my knowledge.

SIGNATURE

Name: SEJAL SANTOSH UPADHYAY

ROLL NO. _44__________

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 ACKNOWLEDGEMENT
I hereby express my heartiest thanks to all sources who have contributed to

the making of this project. I oblige thanks to all who supported, provided

their valuable guidance and helped for the accomplishment of this

project.

I am thankful to Mumbai University for giving me such a challenging task

to explore the urbanization which includes not only thinking and

analyzing various facts and updates about real work, our principal Dr.

(Mr.) NARESH CHANDRA and the course coordinator having such

wonderful course.

I am very much grateful to my project guide Mr. ANIL TIWARI who in

spite of busy schedule spent valuable time to guide me and helped in

completion of this project.

I also extent my hearty thanks to all my family, friends and all the well-

wisher.

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 Project synopsis

 BACKGROUND OF THE STUDY

On September 2, 1969, Chemical Bank installed the first ATM in the U.S. at its

branch in Rockville Centre, New York. The first ATM’s were designed to dispense a

fixed amount of cash when a user inserted a specially coded card. An automated teller

machine, also known as an ATM The idea of out-of-hours cash distribution developed

from bankers' needs in Asia (Japan), Europe (Sweden and the United Kingdom) and

North America (the United States). Little is known of the Japanese device other than

it was called "Computer Loan Machine" and supplied cash as a three-month loan at

5% p.a. after inserting a credit card. The device was operational in 1966. The idea of

a PIN stored on the card was developed by a British engineer. The essence of this

system was that it enabled the verification of the customer with the debited account

without human intervention. (Webster, 2017)

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 An old Nixdorf ATM

 SIGNIFICANCE OF THE STUDY

ATM offer the convenience of multiple locations. You can withdraw cash at any bank

that is part of the system which your ATM card is linked. Your ATM card is protected

by a PIN, keeping your money safe. You don't need to fill out withdrawal and deposit

slips as is required at the bank. Automated teller machine placed in well trafficked

locations have been shown to offer several business benefits.

 RESEARCH PROBLEMS

The major problem is some of the non-educated peoples don’t know about the ATM services

they should know about the facilities of the ATM’s and also in rural area there are some

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 places where there are no ATM machines so they are not aware about the ATM facilities

hence, there should be some awareness about the ATM machines and also how to use this

ATM because ATM facilities are very helpful and everyone should know about this.

 OBJECTIVE OF THE STUDY

The objective study is:

(1) The primary objective of this research paper is to provide a complete knowledge of ATM and

its benefits.

(2) To have a knowledge of the problems of ATM.

(3) To make observation about the concepts and functions of ATM.

(4) To analyses and discuss the strategic issues present in ATM.

(5) To understand the nature and structure of ATM.

(6) To provide anytime banking services to the bank customers without the customer having to

make a trip (Munim, 2014)

 SAMPLING MEHTOD

Method used for sampling is survey method. A questionnaire is generated from the

from the reviews and circulated to 50 candidates.

 ANALYSIS OF DATA

Data taken from the candidates is analyzed in the Microsoft excel.

 KEY FINDINGS

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 For small companies that can feasibly have them installed and maintained, automatic

teller machines (ATMs) placed in well-trafficked locations shown to offer several

business benefits. Those include opportunities for the business to obtain revenue

through transaction fees; higher rates of on-premises spending by consumers using the

machines; reductions in costs and service time related to processing credit and debit

card transactions; and additional ways to interact with the consumer through the ATM

itself.

 SUGGESTIONS

After doing the research I found that, banks should install loud emergency alarm

switches which send strong signals to police stations in case of such incidents like

frauds, card skimming, pin data compromise, keypad jamming etc. Also there should

be more safety at ATM’s, and provide inside ATM’s switches which can act as a door

lock once a person enters in it to make a transaction. As there is need for ATM 24x7

so there is an urgent need to provide security guards at ATM 24x7.

 CONCLUSION

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It is concluded that most of the services performed by banks for ATM are beyond the

expectation of the customers. As the banking sector computerize day to day and ATM

have become a part of modern banking system. The banks in developing country

adopt ATM’s to improve their own internal process and also for increase facilities and

services of their customers. Now customers become aware of this machine .The

growth of ATM rapidly high at the worldwide level also in India. This technology is

simple safe and secure and people feel satisfaction to use this.

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Contents
1 Chapter 1: Introduction ( 8-10 Pages) ................................................................................ 1

1.1 Introduction: Meaning and definition .......................... Error! Bookmark not defined.

1.2 Features/Characteristics ................................................................................................. 2

1.3 Origin and growth .......................................................................................................... 5

1.4 Advantages/Disadvantages/Benefits/Limitations .......................................................... 6

1.5 Recent trends and growing importance........................................................................ 10

1.6 Key challenges ............................................................................................................. 11

1.7 Statement of research problems ................................... Error! Bookmark not defined.

1.8 Objective of the study .................................................................................................. 12

1.9 Chapterisation scheme ................................................. Error! Bookmark not defined.

2 Chapter 2: Review of literature (3-5 Pages) .................................................................... 13

2.1 13

2.2 13

2.3 18

2.4 Error! Bookmark not defined.

3 Chapter 3: Research methodology (3-5 pages) ................................................................ 18

3.1 Research design ........................................................................................................... 18

3.2 Sampling design ........................................................................................................... 18

3.2.1 Target population ......................................................................................................... 18

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3.2.2 Sampling frame ............................................................................................................ 18

3.2.3 Period of study ............................................................................................................. 19

3.3 Sample size .................................................................................................................. 19

3.4 Data collection ............................................................................................................. 19

3.5 Structure of questionnaire ............................................................................................ 19

3.6 Format of questionnaire designed ................................................................................ 21

3.7 Analytical Tools applied for the study ......................................................................... 24

3. Research ethics..................................................................................................................... 24

4 Chapter 4: Data analysis (26- 36 pages) .......................................................................... 25

4.1 Average score............................................................................................................... 25

4.2 Percentage analysis ...................................................................................................... 27

5 Chapter 5: Summary of findings (2-4 Pages) .................. Error! Bookmark not defined.

6 Chapter 6: Suggestions and conclusion (2-3 Pages) ........................................................ 36

List of figures

List of Tables

xii
1

xiii
 1. Chapter 1: Introduction ( 8-10 Pages)

1.1 Introduction: Meaning and definition

1. An Automated teller machine (ATM) is an electronic banking outlet, which allows customers to

complete basic transactions without the aid of a branch representative or teller. Anyone with a

credit or debit card can access most ATM’s. According to the ATM Industry Association, there

are now 3 million ATM’s installed worldwide. On most modern ATM’s 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 expiration date.

Authentication is provided by the customer entering a personal identification number (PIN) which

must match the PIN stored in the chip on the card ( if the card is so equipped) or in the issuing

financial institution’s database.

2 Using an ATM, 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 ATM is

different from that in which the bank account is denominated the money will be

converted at an official exchange rate. Thus, ATMs often provide the best

possible exchange rates for foreign travelers, and are widely used for this

purpose. (Sarah, 2011)

Meaning:

A machine that dispenses cash or performs other banking services when an account holder

inserts a bank card.

Definition:

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 According to “Business dictionary”

a machine that dispenses cash or performs other banking services when an account holder inserts a

bank card.

 According to “Merriam-Webster”

a computerized electronic machine that performs basic banking functions (such as handling check

deposits or issuing cash withdrawals) —called also automated teller machine, automatic

teller, automatic teller machine (Webster, 2017)

1.2 Features/Characteristics

ATMs are convenient way to manage your money, they are worldwide and available 24\7

 Withdrawal cash

You can withdraw cash at thousands of ATMs, in the UK or abroad.

 Pay-in cash

Paying in your cash is easy with our self-service tills.

 Get a balance or mini statement

Need a balance or mini statement? You can request one at an ATM

 Pay bills or transfer money

Set up a payment online and use an ATM to make the payment.

 Change or unlock your PIN

Find it hard to remember your PIN? Why not change it at an ATM.

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1) A customer must be able to make a cash withdrawal from any suitable account linked

to the card, in multiples of rupees 100. Approval must be obtained from the bank

before cash is dispensed.

2) A customer must be able to make a deposit to any account linked to the cards. The

customer will enter the amount of the deposit into the ATM, subject to manual

verification when the envelope is removed from the machine by an operator.

Approval must be obtained by the bank before physically accepting the envelope.

3) A customer must be able to transfer of money between any two accounts linked to the

card.

4) A customer must be able to make a balance inquiry of any account linked to the card.

(Munim, 2014)

ATM Cards

Characteristics:

 Quick Cash Withdrawal

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 As the name suggests and is well known to all, just insert your ATM Debit Card into
the Automated Teller Machine, punch the code and the amount you want to withdraw
and you get the cash in your hands.

In addition to the above there are many lesser known but useful features such as:

 Anyone Can Have Bank Card

All you need is a Bank Account to get a debit card cum ATM card issued to you. This
is much easier than applying for a credit card as a debit card is simply linked to your
bank account.

 Account balance inquiry

You can check your account balance at the ATM. Also there is a facility to get mini
statement of your bank account.

 Details of recent transactions

Through the ATM card you can quickly get the mini statement giving the details of
recent transactions carried out in your bank account. Not only that, you can print this
statement too.

Of course, the information would be in brief and limited to the last 8 or 10

transactions only.

 Deposit cash

Did you miss the banking hours or are you far away from the bank branch? Now
there is no need to go the branch to deposit cash. Just go to the nearest ATM and do
the needful. The ATM clearing times are displayed at the ATM.

 Transfer funds between accounts within the same Bank

If you are holding the ATM card then most of the banks allow you to transfer the
funds from one account to another account on a real time basis. Some banks also let
you transfer funds from your accounts to any third party provided the account is with
the same bank.

Using your ATM card you can now make payment for your Credit Card Bill, Pay
Taxes, do Mobile Phone re charge etc. (Munim, 2014)

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 1.3 Origin and growth

Origin of ATM

The ATM finds its origins in the 1950s and 1960s, when self-service gas stations,

supermarkets, automated public-transportation ticketing, and candy dispensers were

popularized. The first cash machine seems to have been deployed in Japan in the mid-

1960s, according to a Pacific Stars and Stripes account at the time, but little has been

published about it since. The most successful early deployments took place in Europe,

where bankers responded to increasing unionization and rising labor costs by

soliciting engineers to develop a solution for after-hours cash distribution. This

resulted in three independent efforts, each of which entered use in 1967. (webster,

2016)

Growth:

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ATM channel provides opportunity for banks to go for competent and cost effective models.

There was a belief that internet banking channel will make the ATM channel

irrelevant.

However, ATM Channel has dominated the public technology segment, and future of ATM

industry is also quite bright in India. New technological innovations emerge in our

society on a continuous basis. But the diffusion of this technological innovation by the

members of the society determines its success and continuation. In that sense,

Automated Teller Machine (ATM) is not an exception. With the advent of ATMs,

banks are able to serve customers outside the banking halls. The most exciting

experience for the customers as well as the bankers, is that the plastic card is replacing

all the hassles of bank transactions, personal attendance of the customers, banking

hour constraints, and paper based validations (Webster, 2017)

2.4 Advantages/Disadvantages/Benefits/Limitations

Advantages:

To operate an ATM machine, the customer has to insert the card in the machine. Later he has

to enter the password, if the password is correct, the ATM machine permits the

customer to make entries for the withdrawal or for deposit.

1. 24 hours service:

ATM machine provide service round the clock. The customer can withdraw cash up

to a certain limit during any time of the day or night.

2. Convenience to bank customers:

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Now-a-days ATMs are located at convenient places, such as the airports, railway stations,

etc. and not necessarily at the Bank’s premises. It is to be noted that ATMs are

installed off site as well as on site. ATM provides mobility in banking services for

withdrawal.

3. Reduced the work load of bank’s staff:

ATM reduces work pressure from bank staff and avoids queues in bank premises.

4. Provide services without any error:

The customer can obtain exact amount. There is no human error as far as ATMs are

concern.

5. Beneficial for the one who travel:

The one who travel do not need to carry large amount of cash with them. They can

withdraw cash from any city or state across the country and even from outside the

country with the help of ATM

6. New currency notes:

The customer also get new currency notes from ATM’s customer do not get soiled

notes from ATM’s.

7. Privacy:

Most of all, ATM,s provide privacy in banking transactions of the customer. (Akrani,

2011)

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Disadvantages:

1. Fraud

The potential for identity theft is a major disadvantage related to automatic teller machines.
Fraudulent card readers, called skimmers, are placed over the authentic reader to
transfer numbers and codes to nearby thieves. Spy cameras are also used by
password voyeurs to collect access codes. Lost access cards are another potential
for fraud. The Federal Trade Commission states that people are not responsible for
unauthorized use of a card, if it is reported immediately. If the loss is not noticed
immediately, consumers may lose all funds in an account, if notice is not given before
money transfers are made. Incorrect withdrawals noted on monthly statements must
be reported, or else consumers are responsible for the amounts, even when removed
by fraudulent means, according to the U.S. Federal Trade Commission.

2. Theft

ATMs are a magnet for easy theft. Robbers are guaranteed cash from consumers visiting the
money machines. Although ATM robberies are not common (only one attack in every
2.5 million transactions), according to the California Banking Industry, the U.S.
Department of Justice (DOJ) reports that approximately 15 percent of people attacked
and robbed at ATM stations are killed or injured. The DOJ claims the average loss is
between $100 and $200.

3. Fiscal Planning Issues

As a safety measure, many ATMs list only the deposit or withdrawal amount and omit the
balance from the account. People using an ATM for frequent banking are not
informed of the total amount in the account when funds are withdrawn or deposited,
as opposed to traditional checking which provides a register to maintain a running
account of the balance. This lack of recording allows some customers to overdraw
accounts, adding penalty charges.

4. Operation Issues

ATMs located in busy locations may not have adequate funds for busy holiday weekends
when large numbers of people are taking out cash. Most machines require envelopes
to deposit checks and cash, and these may also be in short supply, preventing
customers from depositing funds. Damaged machines leave the bank client with no
alternative during non-banking hours.

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5. Bank Fees

As bank consolidation continues, fewer companies own ATMs, and they limit access to
automated banking. U.S. Senator John Kerry states that two banks, Fleet Bank and
BankBoston, operate nearly two thirds of all the ATMs in New England. This
monopoly reduces competition. Kerry warns that "policy makers should be watchful
of the capacity to which ATM surcharges become more prevalent." Reliance on
automatic teller machines for personal banking means increases in bank fees. Most
banks allow an unlimited number of withdrawals from same system ATMs, but
charge a fee between $2 and $5 for withdrawals from machines outside the system.
(Globe, February 19, 2008)

Benefits:

 ATMs cards are generally preferred for their 24hrs service and for comfort in carry card.

 Other preferences of the card being used are online transactions, trading and paying bills

 ATM provides errors without any error.

 It reduces the hustle and bustle which is involved in a transaction when done through teller.

 ATM provides privacy while conducting bank transactions.

 There is no need of filling forms because ATM requires no such document.

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Limitations:

 Safety issues are the main concern for many of the customers under analysis.

 Hence the banks have come up with safety measures that could be of beneficial for
many of the customers, such as changing of PIN often, provision for blocking the card
and one time password for online transactions

 Pin crack

 The ATM machine doesn’t give 100% availability of cash. It may run low of funds
and cardholders have to wait till the management takes care of it.

 The cost levied to a customer using ATM can be higher.

 Robbers preyed on people using money machines in poorly lit or otherwise unsafe

locations and criminals also devised ways to steal customer’s PIN’s.

1.5 Recent trends and growing importance

The most important development of 2015 was the acceleration of the deployment of other
revenue streams at the ATM — direct currency conversion, charitable donations,
lottery, etc.

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The headlining issue in 2016 will be the decision by sponsor banks to turn off as many as half
of all retail ATMs due to the financial inability of owners to cover the estimated liability shift
losses.[The future holds] enormous potential for both financial institutions and independent
ATM bank staff— especially those whose business model is flexible, adaptive and nimble
and whose employee culture is collaborative, creative and, above all, service-driven.
Automated teller machine (ATM) market is poised to grow on account of
technological advancements in wireless communicating device integration. Rising
integration of wireless communication services with ATM in order to reduce
transaction frauds is a major factor driving demand over the forecast period.
Furthermore, advancements in ATM’s such as solar ATM’s, smart ATMs is expected
to fuel industry growth.
Over past few years, the definition of ATM has changed from a mere cash
withdrawing machine to an automated machine with multiple functionalities. Growing
number of services at ATM kiosks increases consumer convenience, thus is
expected to have a positive impact on market growth. In addition, leading banks are
integrating their services with technology companies in order to deliver a seamless
consumer experience. (Hanna, 2007)

1.6 Key challenges

1: Decreasing profits

Decreasing ATM profitability is one of the biggest challenges facing the industry today.
Contributing factors include an oversaturated ATM marketplace, skyrocketing costs,
increased government regulations, decrease in the number of ATM transactions and
more.

2: Soaring expenses
It costs more than ever to run and manage an ATM business. Regulatory upgrades also add to
the increased expenses incurred by IADs. ATMs no longer in compliance with
government regulations must be upgraded, or in some cases, replaced entirely.

3:Cut-throat competition

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Low barriers to entry have dramatically decreased ATM deployments. The average retail
prices of an ATM have decreased more than 600 percent in the past 13 years.
Saturation of distributors increases the level of competition. (Sarah, 2011)

1.7 Objective of the study

 To design a more secure ATM system.

 .System requirements analysis.

 To develop an ATM simulator

 To configure the fingerprint scanner to capture and store fingerprints

 To originally create for use to dispense cash to customers and to help customers check

their account balance

 To allow you to do the same things as you would at a bank

 To examine the impact of ATM on customer satisfaction by appearising the problems

face by the customers.

 To examine the factor affecting the choice of ATM

1.8 Chapterisation scheme

This project is all about ATM facilities of bank and its majority divided into 6 chapters that

is given below

 Introduction

 Review of literature

 Research methodology

 Data analysis

 Summary of endings

 Suggestion and conclusion

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2 Chapter 2: Review of literature (5-10 Pages)

2.1 R. Renuka (2014), in the study “Customers satisfaction towards

ATM” focuses on customer satisfaction towards ATM services offered by
the banks and tries to suggest ways to improve services. Amongst other
suggestions, the authors have suggested increasing awareness about
various facilities and enhancing the withdrawal limit of cash per day. 24
hours access got the first rank while quality of receipt got the second
rank for level of satisfaction. To find out the level of satisfaction
respondents were provided a list of fourteen factors which were to be
ranked. Likert scale was used for the purpose. The study considers only
customer perceptions towards ATMs. (Shodhganga)

From the above literature we identified the variable “level of satisfaction”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.1 Do customer’s are satisfied through the facility of ATM?

2.2 Sisat S. et al (2014), in the paper “Secured Automatic Teller Machine

(ATM) and Cash Deposit machine (CDM)” has segmented ATM threats
into three types of attacks : card and currency fraud, logical attacks and
physical attacks. The paper gives an idea about the basic ATM and its
major security issues and basic requirements. Since, ATMs deal with
currency notes, focus should be on note security while designing ATM.
This paper is more theoretical in nature and is not backed by primary
data. (Shodhganga)

From the above literature we identified the variable “card and currency fraud, logical

attacks and physical attacks”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.2 There are threats in withdrawing money from ATM.

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2.3Dr. Islam et al (2007), have attempted a case study entitled “Customer
Satisfaction of ATM services : A case study of HSBC ATM” in
Bangladesh. The study aims at investigating the satisfaction levels of
HSBC ATM cardholders with respect to various aspects of service
delivery. Both, staff and customer cardholders have been considered in
this study to find out the performance of HSBC ATM, service quality of
ATM personnel, recommendations to improve the service quality. The
study highlights that machine complexity, machine breakdown, poor
quality notes are the major problems faced by ATM users which are
similar to problems reported by users in the present research study.
Similarly, customers have recommended increase in number of ATM
locations, new ATMs, better currency quality, increase in safety-security etc.

From the above literature we identified the variable “service quality”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.3 How will you rate ATMs in India?

2.4 Sai Krishna (2009), in his study of “ATM cards in banks” has attempted
to find out why customers are increasingly using ATM cards. The
objectives of the study was to draw a profile of a urban ATM
cardholders, to identify the factors influencing the people to use ATM
cards, to assess the benefits of ATM cards to the cardholders, and to
assess how, where and when ATM cards are used. This study certainly
helps the banks to concentrate on increasing the volume of the number of
ATM card holders by providing various user-friendly schemes. The
author suggests that banks must concentrate more on promotional
activities in order to create bank’s image in the minds of the card holders
and try to balance the quality and service to remain as market leader.
Though, this study is based on primary data and considers respondents
from only one bank viz. State Bank of Hyderabad, Vishakapattanam, has
focused on only public sector banks leaving out private and co-operative
banks. Hence, it is not a comparative study of different types of banks.

From the above literature we identified the variable “benefits of ATM cards”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

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Q.4 ATM cardholders are provided with various user-friendly schemes.

2.5 R.MelbaKani et al (2013), in their research paper “Issues and

challenges faced by ATM customers of State Bank of India in South
Tamil Nadu” mention that increasing use of ATMs prompted the authors
to study the issues and challenges towards use of ATM services in South
Tamil Nadu. The objectives of the study was to examine the awareness
level of ATM services at South Tamil Nadu, to study the level of
customer satisfaction on various aspects of ATM services in South Tamil
Nadu, to identify customer problems while using ATM services and to
offer suggestions to overcome the problems in ATM services in the near
future. Primary data was collected from customers of State Bank of India
in South Tamil Nadu which included three districts Kanyakumari,
Trinevelli and Thothukody. The study concludes that young people are
drivers of emerging technology in developing areas and that SBI has
been successful in the arena of ATM cards. This study has used statistical
tools such as chi-square test and weighted average score. However, this
study pertains only to the public sector banks and is not a comparative
study

From the above literature we identified the variable “awareness the level of ATM services”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.5 Are the rural area people aware of the ATM facilities

2.6 Banknet Publications (2007), published the “Report on Indian ATM

Industry in 2007”, is based on online survey of 316 respondents who
were in the age range of 20-60 years, from cities spread across India. The
objectives of the study were to get an insight into ATM users
perceptions, requirements and problems, and to help banks and vendors
in making ATM transactions user friendly and satisfying. The results of
the survey showed an increase in the monthly usage of ATMs mainly
due to large number of services offered by banks which are now being
used by consumers. Limit on daily cash withdrawal was another major
problem identified by this survey. Cash in ATM was depleted at a
faster rate than what banks expected, due to inadequate cash
management and the need for better forecasting of daily cash
requirements at various locations by banks. The methodology consisted
of only primary data collection using an internet based survey. This
survey was open to all ATM users irrespective of which bank they
belonged to. Hence, the findings cannot be related to a particular bank or
any banking sector, thereby limiting the applicability of the

15
recommendations. Whereas in the present research study a comparison of
banks belonging to three different sectors has been done. As a result it
will be easier for bankers to implement recommendations the problems faced by customers
the study does not consider the cost effectiveness aspect.

From the above literature we identified the variable “limit on daily cash withdrawal”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.6 Limit on daily cash withdrawal is major problem for people.

2.7 Ogbuji et al (2012), in their research paper “Analysis of the negative effects of Automated
Teller Machine (ATM) as a channel for delivering banking services in Nigeria”
proposed that the ATM system of delivering banking services not only contribute to
increasing rate of fraud but equally lures Nigerians into profligate expenditure. The
study reveals that ATM was lauded by several customers as an alternative to standing
in long Q’s. But today, this has become a source of worry to customers and banks.
This study concludes that ATMs have contributed to the alarming rate of fraud in
Nigerian banking industry. ATM fraud could be reduced but cannot be wiped out
completely. The study comes out with the conclusion that out of various services of
ATMs, inability of the machine to deliver seamless service, poor maintenance by
management, frustrating network, irregular deductions from customer accounts were
problems faced by customers. However, problem of network failure was the most
outstanding problem
.
From the above literature we identified the variable “problem of network failure”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.7 There are problems and frauds and also poor services in ATM

2.8 Dr. Choodambigai (2010) in the research paper “Customer satisfaction of credit cards
and ATM services of SBI in Coimbatore” attempts to study customer satisfaction of
credit cards and ATM services of State Bank of India in Coimbatore. The objectives
of the study in relation to ATM cards were to study the awareness and usage of ATM
services, to examine the difficulty faced by the samples using ATM cards, to identify
the association between age and purpose of using ATM cards and to rank the reasons
to choose the ATM card facility among the selected samples. According to this study
majority people prefer to use ATM services for withdrawal of cash, followed by
withdrawal and balance enquiry. A tiny number of people use ATM services for

16
 withdrawal and statement of receipt and balance enquiry and withdrawal and
statement of receipt. Though this study is a good attempt to ascertain customer
satisfaction of credit cards and ATM services, it is based on customer perceptions of
only one PSB bank. Thus, there is no comparison available with customer perceptions
of other PSB banks or banks belonging to private sector or co-operative sector which
the present piece of research has ensured.
From the above literature we identified the variable “using of ATM cards”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.8 There are difficulties in using ATM cards for non educated people

2.9 Sakthivel N. (2008), in the case study “Customers’ Perception of ATM services
comparative analysis” analyzes the levels of satisfaction of
the ATM customers of ICICI Bank and SBI. The objectives of the study
were to find out the factors influencing customers to select ATM
services, to understand their levels of satisfaction of ATM services, to
analyze the problems faced by the ATM customers in Tamil Nadu. The analysis
showed that convenience was ranked first. Nearness was ranked second followed by round
the clock facility. Prestige was ranked fourth and minimum balance was ranked fifth. From
the analysis of customer satisfaction of ATM services, 72 percent of ICICI customers were
highly satisfied and 78 percent of SBI customers were highly satisfied.

From the above literature we identified the variable “customer satisfaction of ATM

services”

From the above literature review, keeping the objective of study in focus the following

statement can be framed.

Q.9 Do ATM facility vary from customer to customer?

17
 6. Chapter 3: Research methodology (3-5 pages)

This Chapter concentrates on the research methodology. The research design, sampling

design, data collection method, tools applied for the study geographical coverage and

Research Ethics are detailed.

a. Research design

The research design is defined by Fouche (2002) as “the plan or blue print of the study”.

This research is Qualitative research which allows the researcher to gather

information and do an in-depth exploration of issues, and therefore follows a less

structured format with fewer respondents than quantitative methods.

b. Sampling design

i. Target population

ii. Sampling frame

Quota sampling was adopted by researcher. Quota sampling is where the researcher ensures

that certain groups of people, who are knowledgeable about the research problems,

are adequately represented in the research through the assignment of a fixed quota for

each sub group.

18
iii. Period of study

The period of study was from April 2017 to September 2017 .The study is mainly based on

primary data collected by Study of review of literature. The secondary data were

collected from various sources throughout the period of this study.

c. Sample size

30 samples were collected from

d. Data collection

This section discusses the techniques of gathering primary data for the testing of the research

propositions that were crafted in Chapter I and II. The choice of the data instruments

depends on the availability of facilities, time, costs, the degree of accuracy required,

the expertise of the researcher, and other resources associated with the gathering of

the data.

The questionnaire was given to the respondent directly by the students and was collected later

as per respondents preference as to giving filling the preprinted form.

e. Structure of questionnaire

The structured questionnaire was divided into different sections as felt suitable. The first

section covers personal variables, which are independent based on the assumption that

there were measurable differences amount the levels with regard to the perception of

dependent variables. The second to study factors section of questionnaire covers the

factors of study with dependent variables viz:

19
20
f. Format of questionnaire designed

Title: ___________________________________________________
Researcher : ________________________________
Personal details

Respondents Name: _________________________________________

Gender:  Male  Female

Age  Below 20  20-30 30-40  40-50  Above 50

Education  Below graduate graduate Post graduate  Professional  Others

Experience:  Below 5 years  05-10 years 10-15 years  15-20 years  Above 20 years

Study factor:

Q.1 Do customer’s are satisfied through the facility of ATM?

 Highly yesYesCan,t say  No Highly no

Q.2 There are threats in withdrawing money from ATM.

Highly AgreeAgree Neutral Disagree Highly Disagree

Q.3 How will you rate ATMs in India?

 Very poor PoorAverage Good  Very good

Q.4 ATM cardholders are provided with various user-friendly schemes.

 Highly Agree Agree  Neutral Disagree Highly Disagree

Q.5 Are the rural area people aware of the ATM facilities?

Yes NoCan’t Say  NoHighly No

21
Q.6 Limit on daily cash withdrawal is major problem for people.

Highly Agree Agree Neutral  Disagree  Highly disagree

Q.7 There are problems and frauds and also poor services in ATM

 Highly Agree Agree Neutral  Disagree  Highly disagree

Q.8 There are difficulties in using ATM cards for non educated people

 Highly Agree AgreeNeutral  Disagree  Highly disagree

Q.9 Do ATM facility vary from customer to customer?

Highly yes Yes Can’t say No

 Format of expert questionnaire designed

NAME

DEZIGNATION
ORGANIZATION

22
Q.1 How do you provide ATM services to your customer?
___________________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
__________________

Q.2 Do bank gets profit from ATM’s?

___________________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
__________________

Q.3Is there any transaction fee when using the ATM machine?
___________________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
__________________

Q.4 What are common problems with ATM machines?

___________________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
__________________

23
g. Analytical Tools applied for the study

Data analysis gives meaning to the data that has been collected. More than ____ respondents

were given questionnaire. After verification as to completeness of collected

questionnaire, samples were finalized. The data corresponding to the values in the

Likert Scale were entered for each statement in the questionnaire. It was then checked

for accuracy, through three rounds of visual and hardcopy inspections. The MS Excel

data analysis tool was used for statistical data analysis. The statistical analytical tools

applied include:

 The Average score analysis is mainly used in any study is to assess the level of

opinion/awareness/satisfaction of the different category of respondents on the various aspects

relating to the study. First the opinion of the respondents are assessed through a scaling

technique and then based on the consolidated opinion of the respondents, the average score is

calculated.

 It is the simple and common method to represent raw streams of data as a percentage for

better understanding of collected data. Percentages are used in making comparison between

two or more variables to find the efficacy of each variable.

2. Research ethics

Research ethics refer to the "appropriate" behavior of the researcher in relation to the norms

of the society. It relates to the three parties involved in this research: the researcher,

the respondents and Research supervisor. Researcher assured Confidentiality to the

respondents and secrecy will be maintained. The researcher, on her/his part

maintained objectivity, presented the true research findings.

24
7. Chapter 4: Data analysis (26- 36 pages)

Here,

V1: Level of satisfaction.

V2: Card and currency fraud logical attacks and physical attacks.

V3: Service quality.

V4: Benefits of ATM cards.

V5: Awareness the level of ATM services.

V6: Limit on daily cash withdrawal.

V7: Problem of network failure.

V8: Using of ATM cards.

V9: Customer satisfaction of ATM services.

And

HY: Highly yes

Y: Yes

C: Can’t say

N: No

HN: Highly no

a. Average score

The Average score analysis is mainly used in any study is to assess the level of
opinion/awareness/satisfaction of the different category of respondents on the various aspects
relating to the study. First the opinion of the respondents are assessed through a scaling
technique and then based on the consolidated opinion of the respondents, the average score is
calculated.

25
 In this study the opinion of the respondents are assessed through a five point scaling
technique and then based on the opinion of respondents the average score is calculated and
the result are presented in different tables.

i. Testing of Hypothesis

Null Hypothesis (H0) :Gender of the respondent does not influence their perception as to
Electronic banking services in bank.

Alternative Hypothesis (H1): Gender of the respondent does influence their perception as to
Electronic banking services in bank.
The above testing of hypothesis can be done using the following table:-

Table1 Average score analysis

Total responses

Variable HY=5 Y=4 C=3 N=2 HN=1 Total

V1 16 8 5 1 0 30

V2 2 7 11 9 1 30

V3 0 2 13 4 11 30

V4 7 14 3 5 1 30

V5 3 5 11 8 3 30

V6 3 10 11 3 3 30

V7 3 9 7 8 3 30

V8 7 11 9 2 1 30

V9 4 7 4 12 3 30

Source: Primary data

26
 Table 2: Average score analysis

Source: Primary data

b. Percentage analysis

The percentage analysis/ descriptive analysis describes the distribution of respondents in each
classification as it is expressed in percentage it facilitates comparison.
Table3: Percentage analysis

Variable 5 4 3 2 1 Total "5"% "4"% "3"% "2"% "1"% total%

V01 16 8 5 1 0 30 53% 27% 17% 3% 0% 100%
V02 2 7 11 9 1 30 7% 23% 37% 30% 3% 100%
V03 0 2 13 4 11 30 0% 7% 43% 13% 37% 100%
V04 7 14 3 5 1 30 23% 47% 10% 17% 3% 100%
V05 3 5 11 8 3 30 10% 17% 37% 27% 10% 100%
V06 3 10 11 3 3 30 10% 33% 37% 10% 10% 100%
V07 3 9 7 8 3 30 10% 30% 23% 27% 10% 100%
V08 7 11 9 2 1 30 23% 37% 30% 7% 3% 100%
V09 4 7 4 12 3 30 13% 23% 13% 40% 10% 100%
Source: Primary data

From the above table it is found that:-

27
 With reference to variable V1, it is found that 53% of the respondents think that yes

Customer’s are satisfied through the facility of ATM and 17% have no opinion about the

same.

 With reference to variable V2, it is found that 37% agreed that There are threats in

withdrawing money from ATM and 3% of the respondents are highly disagreed with it.

 With reference to variable V3, it is found that 43% have rated Average for ATM’s in India

and 13% rated good.

 With reference to variable V4, it is found that 47% of the respondents are Agreed with ATM

cardholders are provided with various user-friendly schemes and 3% are disagreed with

the same.

 With reference to variable V5, it is found that 37% of the respondents can’t say about the

Awareness of the ATM facilities in the rural area and 10% are highly no about it.

 With reference to variable V6, it is found that 33% of the respondents are agreed and 10% are

disagreed about the Limit on daily cash withdrawal is the major problem for people.

 According to variable V7, 30% of the respondents are Agreed that There are problems and

frauds and also poor services in ATM and 10% are disagreed with it.

 From variable V8, it is found that 37% are agreed with The difficulties in using ATM cards

for non educated people and 3% of the respondents are highly disagreed with it.

 13% of the respondents says highly yes that ATM facility vary from customer to customer

and 10% of the respondents says highly no in this particular matter concerning variable V9.

c. Gender wise percentage analysis

Gender vise percentage analysis, it is percentage analysis of total respondents but it is

segmented between males and females. We approach 30 respondents in which 7
responses are taken from males and 23 responses from females.

28
 Table 4: Gender wise percentage analysis

Source: Primary data

Table 5: Gender wise average score analysis

Source: Primary data

From the above table we can conclude that:-

29
 From variable V1, we can find that females feel that Customer’s are satisfied through the

facility of the ATM more than male.

 From variable V2, we can find that both female and male feel that There are threats in

withdrawing money from ATM.

 From variable V3, we can find that females feel that ATM’s in India are good more than

male.

 From variable V4, we can find that females feel that ATM cardholders are provided with

various user-friendly schemes more than males.

 From variable V5, we can find that females feel that Rural area people are aware of the

ATM facilities more than males.

 From variable V6, we found that females feel that Limit on daily cash withdrawal is the

major problem for people more than males.

 From variable V7, we found that females feel that There are problems and frauds and

poor services in ATM more than males.

 From variable V8, we found that females feel that There are difficulties in using ATM’s

for non educated people more than males.

 From the variable V9, we found that males feel that ATM facility vary from customer to

customer more than females.

d. Descriptive statistics

Descriptive statistics are statistics that quantitatively describe or summarize features of a

collection of information. Descriptive statistics is the term given to the analysis of the
data that helps describe, show or summarize data in a meaningful way such that, for
example, patterns might emerge from the data

30
 Table 6 : Descriptive statistics

Source: Primary data

Variable V1 has the highest mean that is 4.30

Variable V3 has the lowest mean that is 2.20

All the variable have same average they all are in between 4.30 to 2.20 that means they all

are nearby each other.

Table 7:Age wise Average score analysis

31
Variable V1 has the highest mean that is 4.30
Variable V3 has the lowest mean that is 2.20

All the variable have same average they all are in between 4.30 to 2.20 that means they all are

nearby each other.

Table 8 : Educational qualification wise Average score Analysis

Educational Qualificationwise Average score analysis
Age class Age class Age class Age class Age class
Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Total
1 2 3 4 5
PQ3 1 1 3 2 1 1 2 3 3 1 1 3 1 1 1 2 1 3 2 1 1 3 3 5 5 2 3 3 1 5 13 5 9 0 3 30
V01 3 5 4 5 5 4 5 4 3 5 5 5 3 5 3 5 2 5 5 4 3 5 5 4 5 4 5 4 5 4 4.00 4.80 4.44 #DIV/0! 4.33 4.30
V02 4 2 4 3 3 3 2 3 2 5 4 3 3 2 3 2 4 2 2 2 3 3 3 4 2 5 1 4 4 3 3.23 2.80 2.78 #DIV/0! 3.00 3.00
V03 2 1 3 3 3 3 1 3 2 1 1 1 3 1 1 2 3 3 1 4 3 4 1 1 3 3 1 3 3 2 2.23 2.00 2.33 #DIV/0! 2.00 2.20
V04 4 4 5 4 4 4 5 2 4 2 5 5 3 5 2 4 5 2 4 4 3 4 3 4 1 4 4 2 4 5 3.77 4.20 3.44 #DIV/0! 3.33 3.70
V05 2 5 3 3 3 2 1 2 4 2 4 3 3 5 2 3 3 1 2 2 4 2 1 3 3 3 5 4 4 3 3.15 2.40 2.78 #DIV/0! 3.00 2.90
V06 3 2 5 3 5 4 1 3 4 4 1 2 3 3 3 4 3 4 4 4 1 2 3 4 5 4 4 3 3 3 3.00 3.20 3.33 #DIV/0! 4.00 3.23
V07 4 3 5 4 5 4 2 1 2 3 1 4 3 2 2 4 4 5 2 4 1 2 3 3 2 4 4 3 2 3 2.92 3.20 3.22 #DIV/0! 2.67 3.03
V08 4 5 3 4 4 4 5 4 5 3 3 3 4 4 5 4 2 5 3 3 1 4 4 4 5 2 5 3 3 3 3.46 3.60 4.00 #DIV/0! 4.00 3.70
V09 4 3 4 4 5 4 3 5 4 3 4 2 3 5 4 1 5 2 2 1 1 2 2 2 2 2 2 2 2 2 3.38 2.40 2.78 #DIV/0! 2.00 2.90

Variable V1 has the highest mean that is 4.30

Variable V3 has the lowest mean that is 2.20

All the variable have same average they all are in between 4.30 to 2.20 that means they all are

nearby each other.

32
 Table 9: Experience wise Average score Analysis

Variable V1 has the highest mean that is 4.30

Variable V3 has the lowest mean that is 2.20

All the variable have same average they all are in between 4.30 to 2.20 that means they all are

nearby each other.

33
 Table 10 Correlation analysis on Gender

 Variable V9 has the highest correlation coefficient that is 0.03

 Variable V4 has the lowest correlation coefficient that is -0.38

 All the variable have same average they all are in between 0.03 to -0.38 that correlation

coefficient they all are nearby each other.

4.2.2 Analysis of study variables

 V1 Do customer’s are satisfied through the facility of ATM?

34
 Figure 1

Level of satisfction

HY
Y
CS
N
HN

 V2 There are threats in withdrawing money from ATM.

Figure 2

35
 Card and Currency frauds

HA
A
N
D
HD

 V3 How will you rate ATM’s in India?

Figure 3

Service quality

VP
P
A
G
VG

 V4 ATM cardholders are provided with various user-friendly schemes.

36
 Figure 4

Benefits of ATM cards

HA
A
N
DA
HD

 V5 Are the rural area people aware of the ATM facilities?

Figure 5

Awareness of ATM
40%
35%

30%

25%

20%
15%

10%
5%
0%
HY Y CS N HN

 V6 Limit on daily cash withdrawal is major problem for people.

37
 Figure 6

Limit on daily cash withdrawal

40%
35%
30%
25%
20%
15%
10%
5%
0%
HA A N D HD

 V7 There are problems and frauds and also poor services in ATM.

Figure 7

Problems and Network failure

HA
A
N
D
HD

 V8 There are difficulties in using ATM cards for non educated people.

38
 Figure 8

Using of ATM cards

HA
A
N
D
HD

 V9 Do ATM facility vary from customer to customer?

Figure 9

Customer satisfaction of ATM services

HY
Y
CS
N
HN

39
5: Summary of findings (2-4 Pages)

1. Level of satisfaction:

The study shows that more 53% of the people are satisfied with the facility of ATM

for their day-to-day ATM transactions.

2. Card and Currency fraud:

With respect to the study conducted, more than 37% of the respondents feel that there

are no threats in withdrawing money from ATM for their day to day transactions.

3. Service quality:

Considering the data collected from the study, 43% of the respondents feel that they

are satisfied with the service quality of ATM.

4. Benefits of ATM cardholders:

With reference to the study, more than 47% of the respondents feel that they have

many benefits from the ATM machine.

5. Awareness:

The study shows that more than 37% of the respondents agreed that rural area people

are not aware of the ATM facilities.

6. Limit on daily cash withdrawal:

By observing the statistics of the study, it is seen that more than 33% of the

respondents feel that there are problems while withdrawing money from ATM.

7. Problems of network failure:

With respect to the study conducted, only 30% of the respondents found that there are

network failure problem and also there are poor services in ATM sometimes.

8. Using of ATM cards:

The study shows that more than 37%, of the respondents find that ATM cards are

difficult to use for non-educated prople.

40
 9. Customer satisfaction of ATM services:

Considering the data collected from the study, less than 13% respondents think that

customer facility vary from customer to customer.

Chapter 6: Suggestions and conclusion (2-3 Pages)

OBJECTIVE 1:

 To find out the major problems faced by customers by using ATM machines.

 Lack of awareness among the customers about the ATM services to some people.

 Security issues of fraud.

 Difficulties is using ATM cards for non educated people.

OBJECTIVE 2:

 To study how the banks resolve the problems faced in providing services to the

customers.

 Creating awareness among the customers especially for non educated and rural area

people by taking seminars and meetings or awareness.

 By providing information related how to use ATM for their benefits through

awareness camp.

OBJECTIVE 3

 To study about the strategies implemented by banks to enhance the development of

more ATMs throughout the country so it can be easier for the people to withdraw

cash.

 Providing better services.

OBJECTIVE 4:

41
  To find out how customers satisfaction levels are tracked by banks while providing

banking services.

 By collecting feedback while interacting with the people and knowing what

problems they are facing.

5. Bibliography

Akrani, G. (2011). Automated teller machine advantages. Mumbai: Gaurav.

dictionary, c. (2013).

dictionary, m. w. dictionary.

Globe, B. (February 19, 2008). Withdrawing from ATM habit. John Kerry's.

Hanna, T. H. (2007). banks branching locations. Recent trends in banks and bank branches .

Munim, Y. (2014). chegg study.

Sarah. (2011). Using ATM's travel and tips . Schlichter: online publisher.

Shodhganga. (n.d.). Shodhganga , chapter 3.

Webster, M. (2017).

webster, m. (2016). dictionary. george and charles merriam.

42