CHAPTER-I

INTRODUCTION AND DESIGN OF THE STUDY

INTRODUCTION
ATM can offer significant benefits to bank and their deposits. Today the ATM interface part
of a bank’s communications and market strategy. The machine can enable depositors to
withdraw cash at more convenient times and pace than during banking hours at branches. At the
same by automating services that were previously completed manually, ATMs can reduce the
costs of servicing some depositor demands.

The ATM centers are working around 24 hours. The card holders can withdraw money at any
time. Using the ATM facility the banks reduce over crowd. The public have security and free
from evils of theft and cheating as the ATM centers are mainly in the crowded areas.

Now a day ATM card is used for all commercial dealing and most of the commercial
establishment accepted ATM cards of their customers.

Banks introduced ATM in the 1970’s to automate tow functions, namely Deposits and
withdraw (extraction).

Citicorp first, installed ATMs to serve customers with low bank balances. Initially the
thinking in banking circles was that the high balance customers would do business with bank
tellers and ATMs would be used by the less wealthy.

As ATMs proliferated, banks saw the business need for a network that could be accessed by a
broader range of people transacting from non-traditional place like airports and supermarkets and
for a wider array of activities, such as bank balance inquires or loan application.

In this situation, this project was taken to study the customers’ option about Ambasamudram
SBI’s ATM centre which is opened.

Also this projects deals with the uses of the centre and difficulties faced by customers in
getting money.
1.1 STATEMENT OF THE PROBLEM
This project deals with the uses of the centre and difficulties faced and usage of ATM card,
the user face any problem at the time of using ATM and customers’ satisfaction security system
in the ATM.

1.2 OBJECTIVES OF THE STUDY

 To study the ATM cards services to customers.
 To analyze the user’s satisfaction on toward the ATM cards.
 To study the users problems of using ATM card.
 To provide suggestions to improve the ATM services of bank.

1.3 SCOPE OF THE STUDY

The present study covers the ATM cardholders of Alangulam SBI. Further the study covers
the different schemes of State Bank of India , ATM facilities, working of ATM and the level of
satisfaction of customer using the ATM card provided by the State Bank of India branch,
Alangulam.

1.4 METHODOLOGY
The methodology comprises of

(i) Collection of data

Primary data work collected from 75 respondents selected at random basis. Secondary
data work collected from SBI’s website, books, journals etc., appropriate of the study.
(ii) Sampling design
The researcher has adopted simple random sampling technique for selecting 75
respondents.
(iii) Tools and Techniques used
The researcher used questionnaire to collect the necessary information from the
ATM cardholders of SBI in Alangulam. The tool used is Chi-Square test.

1.5 FIELD WORK AND DATA COLLECTION

Field work for the study was carried out by researcher himself. It was conducted during the
year 2020-2021 from the month of December to April. The researcher used interview schedule
(Appendix-‘A’) for collecting data from the ATM cardholders. Data were collected through
interviewers with prior appointments. The interview was quite informal. The cardholders’
responses are recorded by the researcher in the interview schedules. Opinion was taken to ensure
completeness and accuracy in the interviews.

The present study is an empirical based on survey method. Primary data were collected
directly from the ATM cardholders by adopting the interview schedule (Appendix-‘A’). The
secondary data had been collected from the Banking theory and practice and text books.

The interview schedule which was used in the study had been structured by the researcher.
The variables to be studied have been identified in the primary interview with some selected
cardholders. The variable thus indentified by the researcher has been converted into appropriate
questions. The schedule was redrafted again in the light of the comments received from the
experts.

1.6 LIMITATIONS OF THE STUDY

The population of the study i.e., the total number of the ATM users is very Large. But the
researcher has selected only 75 respondents on random basis according to the convenience of the
researcher. The answers given by the respondents were subject to exaggeration and suppression
on their part. This study is subjected to the above conditions more over the stratification of
respondents was not done properly by the researcher.

1.7 SCHEME OF REPORT

The project has been organized and presented in four chapters.

Introduction

 The First Chapter deals with the introduction and design of the study. It includes
introduction, scope of the study, and objective of the study, sampling design, fieldwork
and collection of data, tool and techniques used, and chapter scheme.
 The Second Chapter deals with profile of State Bank of India and ATM services of SBI.
 The Third Chapter deals with the various ATM services.
 The Fourth Chapter deals with the Analysis and Interpretation of the collected data.
 The Fifth Chapter deals with the finding of the earlier chapter as well as provides
valuable suggestions to for the betterment of ATM services.
 CHAPTER – II
PROFILE OF STATE BANK OF INDIA

INTRODUCTION
State Bank of India is that country’s largest commercial bank. The government controlled
bank – the Indian government maintains a stake of nearly 60 percent in SBI through the Central
Reserve Bank of India --- also operates the world’s largest branch network, with more than
13,500 branch offices throughout India, staffed by nearly 2,20,000 employees, SBI is also
present worldwide, with seven international subsidiaries in the United Stated, Canada, Nepal,
Bhutan, Nigeria, Mauritius and the United Kingdom, and more than 50 branch offices in 30
countries. Long an arm of the Indian government’s infrastructure, agricultural, and industrial
development policies, SBI has been forced to revamp its operations since competition was
introduced into the country’s commercial banking system. As part of that effort, SBI has been
rolling out its own network of automated teller machines, as well as developing anytime ---
anywhere banking services through internet and other technologies. SBI also has taken
advantage of the deregulation of the Indian banking sectors to enter the bank assurance, assets
management, and securities brokering sectors. In addition to, SBI has been working on reigning
in its branch network, reducing its payroll, and strengthening its loan portfolio. In 2003, SBI
reported revenue of $10.36 billion and total assets of $104.81 billion.

The establishment of the British colonial government in India brought with it calls for the
formation of a western-style banking system, if only to serve the needs and interests of the
British imperial government and of the European trading houses doing business there. The
creation of a national banking system began at the beginning of the 19th century.

2.1 EVOLUTION OF SBI

The origin of the State Bank of India goes back to the first of the nineteenth century with
the establishment of the Bank of Calcutta in Calcutta on (2 June 1806). Three Years later the
bank received its character and was re-designed as the Bank of Bengal (2 January 1806). A
unique institution, it was the first joint stock of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed
the Bank of Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either
as a result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India’s
economy. Their evolution was, however, shaped by ideas called from similar developments in
Europe and England, and was influenced by changed occurring in the structure of both the local
trading environment and those in those in the relation of the Indian economy of Europe and the
global economic frame work.

2.2 ESTABLISHMENT
The establishment of the Bank of Bengal marked the advent of limited liability, joint-
stock banking in India. So was the associated innovation in banking, viz. the decision to allow
the Bank of Bengal to issue notes, which would be accepted for payment of public revenues
within a restricted geographical area. This right of note issue was very valuable not only for the
Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an
accretion to the capital of the banks, a capital on which the proprietors did not have to pay any
interest. The concept of deposit banking was also an innovation because the practice of accepting
money for safe keeping (and in some cases, even investment on behalf of the clients) by the
indigenous bankers had not spread as a general habit in most parts of India. But, for a long time,
and especially up to the time that the three presidency banks had a right of note issue, bank notes
and government balances made up the bulk of the investible resources of the banks.

The three banks were governed by royal charters, which were revised from time to time.
Each character provided for a share capital, four-fifth of which were privately subscribed and the
rest owned by the provincial government. The members of the board of directors, which
managed the affairs of each bank, were mostly proprietary directors representing the large
European managing agency houses in India. The rest were government nominees, invariably
civil servants, one of whom elected as the president of the board.
2.3 BUSINESS
The business of the banks was initially confined to discounting of bills of exchange or
other negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes. Loans were restricted to Rs.1 lakhs and the period of accommodation
confined to three months only. The security of such loans was public securities, commonly called
Company’s Paper bullion, treasure, plate, jewels, or goods ‘not of a perishable nature’ and no
interest and no interest could be charged beyond a rate of twelve percent. Loans against goods
like opium, indigo salt woolens, cotton, cotton piece goods, mule twist and ilk goods were also
granted but such finance by way of cash credits gained momentum only from the third decade of
the nineteenth century. All commodities, including tea, sugar and jute, which began to be
financed later, were either pledged or hypothecated to the bank. Demand promissory notes were
signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank.
Lending against shares of the banks or on the mortgage of houses, land or other real property
was, however, forbidden.

Indians were the principal borrowers against deposit of Company’s paper, while the
business of discounts on private as well as salary bills was almost the exclusive monopoly of
individuals Europeans and their partnership firms. But the main function of the three banks, as
far as the government was concerned, was to the prices of government securities.

2.4 MAJOR CHANGES IN THE CONDITIONS

A major change in the conditions of operation of the Banks of Bengal, Bombay and
Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of
note issue of the presidency banks and the Government undertook to transfer the Treasury
balances to the bank at places where the banks would open branches. None of the three banks
had till then any branches (except the sole attempt and that too a short-lived one by the Bank of
Bengal at Mirzapore in 1839) although balances at places where they would open branches, they
embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies
of the three presidency banks covered most of the major parts and many of the inland trade
centers in India. While the bank of Bengal had eighteen branches including its head office,
seasonal branches and sub agencies, the Banks of Bombay and had fifteen each.
2.5 IMPERIAL BANK
The Imperial Bank during the three and a half decades of its existence recorded an
impressive growth in terms of offices, reserves, deposits, investments and advances, the increase
in some cases amounting no doubt provided a firm and durable platform. But the lofty its
traditions of banking which the imperial Bank consistently maintained and the high standard of
integrity it observed in its operations inspired confidence in its depositors that no other bank in
India could perhaps than equal. All these enabled the Imperial Bank to acquire a pre-eminent
position in the Indian Banking industry and also secure a vital place in the country’s economic
life.

2.6 PRESIDENCY BANKS ACT

The Presidency Bank Act, which came into operation on 1 May 1876, brought the three
presidency banks under a common statue with similar restrictions on business. The proprietary
connection of the Government was, however terminated, though the banks continued to hold
charge of the public debt offices in the three presidency towns and the custody of a part of the
government balances.

The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay and
Madras into which sums above the specified minimum balances promised to the presidency
banks at only their head offices were to be lodged. The Government could lend to the presidency
banks from such Reserve Treasuries but the latter could upon them more as a favor than as a
right.

2.7 PRESIDENCY BANKS OF BENGAL

The Presidency Banks of Bengal, Bombay and Madras with their 70 branches were
merged in 1921 to form the Imperial Bank of India. The triad had been transformed into
monolith and a giant among Indian commercial bank, a banker’s bank and a banker to the
government.

But this creation was preceded by years of deliberations on the need for a ‘State Bank of
India’. What eventually emerged was a ‘half-way house’ combining the functions of a
commercial bank and a quasi-central bank.
 The establishment of the Reserve Bank of India as the central bank of country in 1935
ended the quasi-central banking role of the Imperial Bank. The latter ceased to be bankers to the
Government of India and instead became agent of the Reserve Bank for the transaction of
government business at centers at which the central bank was not established. But it continued to
maintain currency chests and small coin depots and operate the remittance facilities scheme for
other banks and the public on terms stipulated by the Reserve Bank. It also acted as a bankers’
bank by holding their surplus cash and granting them advances against authorized securities. The
management of the bank clearing house also continued with it at many places where the Reserve
Bank did not have offices. The establishment of the Reserve Bank simultaneously saw important
amendments being made to the constitution of the Imperial Bank converting it into a purely
commercial bank.

2.8 STATE BANK OF INDIA

The State Bank of India (SBI) is the largest Indian banking and financial services
company (by turnover and total assets) with its headquarters in Mumbai, India. It is state-owned.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding
in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidency banks, Bank of Calcutta and
Bank of Bombay to form Imperial Bank of India, which in turn became State Bank of India. The
government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of
India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took
over the stake held by the Reserve Bank of India.

SBI provides a range of banking products through its vast network of branches in India
overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with
over 16,000 branches, has the largest banking branch network in India. SBI has Local Head
Offices and 57 Zone Offices that are located at important cities throughout the country, it also
has around 130 branches overseas.

With an asset base of $352 billion and $285 billion in deposits, SBI is a regional banking
behemoth and is one of the largest financial institutions in the world. It has a market share among
Indian commercial banks of about 20% in deposits and loans. The State Bank of India is the 29 th
most reputed company in the world according to Forbes. Also SBI is the only bank featured in
the coveted “Top 10 Banks of India” list in an annual survey conducted by Brand Finance and
The Economic Times in 2010.

The State Bank of India is the largest of the Big Four Banks of India, along with ICICI
Bank, Punjab National Bank and HDFC Bank – its main competitors.

2.8.1 NON BANKING SUBSIDIARIES

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

1. SBI capital markets ltd.,

2. SBI funds management Pvt. ltd.,
3. SBI factors & commercial services Pvt. ltd.,
4. SBI cards & payments services Pvt. ltd., (SBICPSL)
5. SBI DFHI ltd.,

2.8.2 BOARD OF DIRECTORS

After the end of O.P. Bhatt’s reign as SBI chairman on 31st March 2011, the post was
taken over by Pratip Chaudhuri, who is the former Deputy Managing Director of the
International Division of SBI. As on 4th August, 2011, there are twelve members in the SBI
Board of Directors, including Subir Gokarn, who is also one of the four Deputy Governors of the
Reserve Bank of India.

The complete lists of Board Members are:

1. Pratip Chaudhuri (Chairman)

2. Hemant G.Contractor (Managing Director)
3. Diwakar Gupta (Managing Director)
4. A. Krishna Kumar (Managing Director)
5. Dileep C. Choksi (Director)
6. S. Venkatachalam (Director)
7. D. Sundaram (Director)
8. Parthasarathy Iyengar (Director)
9. G.D. Nadaf (Officer Employee Director)
10. Rashpal Malhotra (Director)
 11. D.K. Mittal (Director)
12. Subir V. Gokarn (Director)

2.8.3 BRANCHES OF SBI

 State Bank of India has 137 foreign offices in 32 countries across the globe.
 SBI has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman of
State Bank Shri O.P. Bhatt on 31 st March 2011, the day of his retirement); and SBI group
(including associate banks) has about 45,000 ATMs.
 SBI has 21,500 branches, including branches that belong to its associate banks.
 SBI includes 99345 offices in India.
 India’s number one ADB is in bellary i.e. State Bank of India bellary ADB.

2.8.4 SYMBOL AND SLOGAN

 The symbol of the State Bank of India is a circle and not key hole and a small man at the
centre of the circle. A circle depicts perfection and the common man being the centre of
the bank’s business.
 Slogans: “Pure banking nothing else”

2.8.5 RECENT AWARDS AND RECOGNITIONS

 Best online banking award, Best Customer Initiative Award & Best Risk Management
Award (Runner Up) by IBA Banking Technology Awards 2010.
 The Bank of the year 2009, India (won the second year in a row) by The Banker
Magazine.
 Best Bank – Large and most socially responsible bank by the business bank award 2009
 Best bank 2009 by business India.
 The most trusted brand 2009 by the Economic Times.
 Most preferred bank & most preferred home loan provider by CNBC.
 Visionaries of Financial Inclusion by FINO.
 Technology bank of the year by IBA banking technology awards.
 SKOCH Award 2010 for virtual corporation category for its e-payment solution.
 CHAPTER – III
ATM SERVICES

SBI ATMs offers a host of services, check them out below

1. Cash Withdrawal: The most popular service on SBI ATMs enables customers to
withdraw up to a daily limit of Rs. 40,000 (limit on classic debit card. Higher value cards
permit daily withdrawal limits of up to Rs. 1 lakh per day)
2. Fast Cash: This service which enables you to withdraw your preferred amount with just
a touch. The options in the denomination of 100, 200, 500, 1,000, 2,000, 3,000, 5,000,
and 10,000 are available.
3. Pin Change: Use this service to change your password at regular intervals.
4. Balance Enquiry: Expecting an inflow of funds in your account? Use this service to
check the current available balance in your account. This service is also available on the
main option screen after swiping your card.
5. Mini Statement: Keep track of the transactions in your account by availing this service.
Mini-statement gives you an insight into the last 10 transactions in your account.

Use the ‘Transfer option on State Bank ATMs and avail of:
1. Card to Card Transfer: Send cash in a flash from one SBI Debit Card to the other.
Using this free and easy service, you can transfer up to Rs. 40,000 per day instantly to
anyone. There is no limit on the number of transactions. The limit of Rs.40,000 per day
will be common across the C2C and Card to Account facility. All you need is your SBI
debit card, your pin and the beneficiary’s debit card number.
2. Credit Card Payment (Visa): Use this service to pay the bill of any Visa credit card.
Use the ‘Services’ option on State Bank ATMs avail of:
3. Credit Card Payment: Make a paperless payment of your SBI credit card bill.
4. SBI Life Premium Payment: Pay Your SBI Life Insurance premium payment using any
of our ATMs.
5. Mobile Top-up: Talk non-stop and recharge your mobile prepaid connection from any of
SBI’s 43000+ ATMs.
 6. Cheque Book Request: Order your cheque book without visiting the branch or filling in
any transaction slips. Remember to update your registered address in the branch as the
cheque book will be delivered at the address registered in the branch.
7. Bill Payment: Use SBI ATMs to pay your utility bills viz. Bangalore, Hubli,
Chamundeshwari Electricity Supply Company, Karnataka and Chattisgarh State
Electricity Board.

Use the ‘Mobile Registration’ option on State Bank ATNs to :

1. Mobile Banking Registration: Register/Deregister your mobile banking application
using SBI ATMs.
2. Inter-mobile Mobile Payment System: You can register for the IMPS service at all SBI
ATMs. This service allows you to transfer money to any other person with a registered
IMPS number instantly.
3. Term Deposit: You can also create a term deposit using ATMs. Just click the
‘TDR/STDR’ option: Minimum amount of Rs.10,000 (valid in singly owned accounts
only).

3.1 SBI CASH TRANSFER

If you want to transfer money from one SBI account to another through a State Bank
ATM, there is no option to transfer directly to a bank account. Instead you can use the card to
card transfer. In card to card transfer the money in your account is transferred to any state bank
group debit card. This is equivalent to transferring to another bank account.

All ATM cum debit card holders of the state bank group can avail the above facilities.

To use this facility when you swipe your card you will see several options. On the right
bottom side of the screen you can see transfer. Select the option and you will be asked to enter
the PIN number. Enter the PIN and you can see the card to card transfer option and select it. You
will be asked to enter the card number twice. Then you will be asked to enter the amount. They
you need to select your account type (Checking or Savings). The recipient’s account will be
credited immediately and the service is free.
3.2 ATM SERVICES
State Bank offers you the convenience of over 26,000 ATMs in India, the largest network
in the country and containing to expand fast! This means that you can transact free of cost at the
ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the
Associate Banks – namely, State Bank of Bikaner & Jaipur, State Bank of Hyderbad, State Bank
of Mysore, State Bank of Patiala, and State Bank of Travancore) and wholly owned subsidiary
viz. SBI commercial and International Bank Ltd., using the State Bank ATM – Cum – Debit
(cash Plus) card.

SBI ATM – Cum – Debit card offers unparallel convenience. With SBI ATM – Cum –
Debit card, there is no need to carry in your wallet. You can now withdraw cash and make
purchase anytime you wish to with your ATM –Cum – Debit card. You can use your ATM-
Cum-Debit card to transact for FREE at any of over 22000 ATMs of any bank in State Bank
Group within the country.

3.2.1 ATM HARDWARE

An ATM is typically made up of the following devices:

 CPU (to control the user interface and transaction devices)

 Magnetic and / or chip card reader (to identify the customer)
 PIN pad (similar in layout to a Touch tone or Calculation Keypad)

Often manufactured as part of a secure enclosure:

 Secure crypto-processor, generally within a secure enclosure.

 Display (used by the customer for performing the transmission)
 Function key buttons (usually close to the display) or a Touch screen
 Record printer (to provide the customer with a record of their transaction)

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 system. Although it is undoubtedly
cheaper to use commercial off-the-shelf hardware, it does make ATMs potentially vulnerable to
the same sort of problems exhibited by conventional computers.

3.2.3 ATM SOFTWARE

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 din ATM development include RMX or OS/2. Today the vast majority
of ATMs worldwide use a Microsoft Office, 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.

Common applications layer transaction protocols, such as Diebold 91x (911 or 912) and
NCR NDC or NDC+ provide emulation of older generations of hardware on newer platforms
with incremental extension made over time to address new capabilities, although companies like
NCR continuously improve these protocols issuing newer versions (e.g. NCR’s AANDC v3.x.y,
where x,y are subversions). Most major ATM manufactures provide software packages that
implement these protocols. Newer protocols such as IFX have yet to find wide acceptance by
transactions processors.

3.2.4 ATM SECURITY

Security as it related to ATMs has several dimensions. ATMs also provide a practical
demonstration of a number of security systems and concepts operations together and how various
security concerns are dealt with ATM.

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 housing to steal its
cash.
 The security of ATM transactions relies mostly on the integrity of the secure crypto-
processor the ATM often uses commodity components that are not considered to be “trusted
systems”.

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 Newyork state comptroller’s office has criticized the Newyork state
department of Banking for not following through on safety inspections of ATMs in high crime
areas. 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.

3.2.5 PRECAUTIONAL FOR SECURE CARD TRANSACTIONS

 Change your PIN after first usage & periodically after that.
 Never keep the PIN with the card. Never write it on the card. Best to memorize it.
 Hide keypad with one hand while keying in your PIN at ATM/POS terminals.
 Do not let strangers come in to the ATM room while you are doing your transaction, and
do not take help of strangers at ATM.
 Block and destroy your old card, when you get a new one.
 Insist on swiping your card in your presence in hotels/ shops/ malls etc.,
 Don’t throw your transactions slip in ATM room.
 Don’t transact if you observe any attachments or unusual devices connected to the ATM.
 Check your account statement periodically.
 If you lose your card Hot list it immediately. Call 1800-112211.
 Do not provide ATM card & PIN details to anyone, not even to the Bank/ IBA/ RBI/
Govt. Agency. Bank or any other institution will never ask for this information.
 Register your mobile number at the ATM/Branch to get SMS alerts for all transactions
above Rs.5000.

3.2.6 FRAUD IN ATM

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 Buck lands Boys were able to steal information from cards
inserted into the machine by customers.

In some cases, bank fraud could occur at ATM’s whereby the bank accidentally stocks
the ATM with bills in the wrong denomination, therefore, fiving the customer more money than
should be dispended. The result of receiving too much money may be influenced on the
cardholder agreement in place between the customer and the bank.

CARD FRAUD
The 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.

Another simple form of fraud involves attempting to get the customer’s bank to issue a
new card and stealing it from their mail. Some ATMs may put up warning messages to
customers to not use them when it detects possible tampering.

3.2.7 PERSONAL INDENTIFICATION NUMBER (PIN)

The cardholder is initially allotted a computer generated 4 digit PIN which will be
collected from the card issuing branch in a secured and sealed PIN mailer.

This PIN is used for withdrawing cash at an ATM or for purchasing foods and services at
a Merchant Establishment. The Card Holder is advised in his own interest to change his PIN to
any other four digit number of his or her choice. For this purpose, he may use the PIN charge
option available at networked State Bank Group ATMs. The PIN should be safeguarded
carefully. Usage of wrong PIN three times world invalidated the card for the rest of the day.
While selecting a PIN, the card holder is advised to avoid a PIN which can be easily associated
with him or her.

 A sequence from the associated account number.

 String of the same number.
 Historically significant dates.
3.2.8 SPECIMEN SIGNATURE
The cardholder shall sign the card on the reverse as per the specimen signature given on
the application form for the card. The signature shall tally with the latest signature of the
cardholder as per Bank’s record.
3.2.9 TRANSACTION COSTS
State Bank accepts Debit / Credit cards issued by other banks in India and abroad
affiliated to both VISA and Master Card International at its over 22000 ATMs, in India. Cash
transactions and balance enquires are allowed at these ATMs too which card issuing bank may
levy nominal charges.

Their Bank’s ATM – Cum _ Debit card offering named as State Bank cash Plus – cash
plus offers great service for personal banking user, cash plus also providers online access to
savings or current account and has a tie-up with master car international.

 At merchant establishment numbering over 1,23,000 in Indian displaying Mastro Logo.

 At all networked State Bank ATMs numbering 5500.
 At ATMs of other banks numbering around 12500 across the country displaying cirrus
logo.
 PIN based card.
 No expiry date. Only the and bears “Valid from date”.
 Existing ATM cards automatically upgraded to ATM – Cum – Debit card without
replacement and operable on the same PIN.
 No transaction cost at Merchant Establishment.

3.2.10 CONCLUSION
The chapter deals with Card, Cardholder, Automatic Teller Machine, Personal
Identification Number, Specimen Signature, Fees, Precautions for secure transactions, Terms and
Conditions and Other Important Conditions covering the transactions.