A

PROJECT REPORT
ON

A STUDY OF ATM SYSTEM

COMPARISION BETWEEN SBI AND ICICI
A DETAILED STUDY DONE IN

FINANCE
Submitted in partial fulfillment of the requirement for the award of degree of
Bachelor of Business Administration (BBA) under Bharati Vidyapeeth
Deemed University, Pune.
Submitted by
NINAD AMBIKE

ROLL NO:02
BATCH: 20011-2014
Under the guidance of
PROF. VEENA CHAVAN

Bharati Vidyapeeths
Institute of Management & Entrepreneurship Development
Navi Mumbai

DECLARATION
I hereby declare that the dissertation A STUDY OF ATM SYSTEM COMPARISION
BETWEEN SBI AND ICICI submitted for the BBA Degree at Bharati
Vidyapeeths Institute of Management & Entrepreneurship Development Navi
Mumbai is my original work and the dissertation has not formed the basis for the
award of any degree, associate ship, fellowship or any other similar titles.

ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the possibility to complete
this project.
I would like to thank my guide PROF.VEENA CHAVAN for her continuous guidance.
I am thankful to our Director, Dr. DY Patil for providing me a platform and supporting
me towards the successful completion of this project. I also want to thank my class mates
who have helped me in getting acquainted with various aspects during the project.
In the end, I express my gratitude to my family who inspired me in doing this work.
Without their inspirations the completion of this work was almost impossible.

Signature of the student

NINAD AMBIKE

EXECUTIVE SUMMARY
ATM means Automated Teller Machine. Most historians agree that Barclays in the
London was the first to deploy an ATM in 1967. It wasnt until the mid to late 1980s that
ATMs gained wide acceptance. Automated teller machine is those machines, which are
used within, or outside the bank premises for cash payment and other transaction related
services without intervention of human bring. ATM have progressed from being merely
cash dispensers to provide facilities for deposit balance & reporting & inter account
transaction
There are over 1.2 million ATMs installed worldwide. Approximately every 5 minutes a
new ATM is installed. The ATM is one of the most important technological inventions of
the second half of the twentieth century, helping to crate the 24 X 7 all hours access to
their own-anked cash near to where they live, work and shop.
Despite the challenges ATM management poses to banks and credit unions, ATM
networks are proven to help attract new customers and promote self-service banking and
convenience.
If you should ever be forced by a robber to withdraw money from an ATM machine, you
can notify the police by entering Pin # in reverse.
Cash machine crime has risen despite leading banks investing millions of pounds in antiskimming technology.
Reserve Bank Of Indias Guideline for issue of ATM-cum-Debit Cards by UCBs. Banks
which are authorized to install on-site / off- site ATMs, as per the policy in force, may
introduce ATM-cum- Debit cards with the approval of their Board keeping in view the
guidelines as given in Annex I. A report on the operations of these cards issued by banks
should be forwarded to the RBI, Department of payment and Settlement System (DPSS)
with a copy to the Regional office concerned of RBI on a half yearly basis, say at the end
of March & September every year, incorporating information as indicated in Annex II.
Benefits of Biometric supported ATMs Provide strong authentication. Hidden costs of
ATM card management like card personalization, delivery, management, re issuance,
PIN generation, help-desk, and re- issuance can be avoided. Ideal for Indian rural masses.
4

TABLE OF CONTENTS
PARTICULARS

PAGE NO:

Acknowledgement

(i)

Certificates

(ii)

Executive Summary

(iv)

Table of Contents

(v)

Chapter 1: Introduction of the Project

1.1: Concept & Significance of the Study

1.2: Objective of the Study

1.3: Scope and Limitations

1.4: Literature Review

Chapter 2: Introduction Of ATM

2.1Introduction

2.2:History Of ATM

2.3:Invention Of ATM

11

2.4 Types Of ATM Cards

15

2.5 Parts Of ATM

17

2.6 How To Use ATM

21

2.7 Uses Of ATM

24

2.8 Advantages and Disadvantages

27

2.9 ATM Security System

30

2.10 Types of ATM

33

2.11ATM security information

34

Chapter 3: Research Methodology

39

3.1: Research Design

40

3.2: Data Collection Techniques and Tools

41

3.3: Sample Design

43

Chapter 4: Data Analysis and Interpretation

44

Chapter 5: Conclusions and Suggestions

57

Annexure
Bibliography

Chapter1
Introduction Of The
Project

1.1 Concept
7

ATM mean Automated teller machine, which is used within or outside the bank premises
for cash payments and other transaction, related services without intervention of human
being. ATM is installed in different forms as wall unit, window unit or lobby unit
depending upon the location and the need of target customers.

Significance Of The Study

The particular topic is chosen since the ATM concept is new to the market the aim is to
study the product and its awareness in the general public and also the usage rate i.e.,
frequency of usage among the existing users. The study helps to obtain suggestions for
improvement of product and service and also helps for finding out satisfaction level of
customers.

1.2 OBJECTIVE OF THE STUDY:

8

1. To study the functioning of ATM s.

2. To compare the ATM services of SBI and ICICI .
.
3. To study the advantages of using ATM card .
4. To study the services provided through ATMs.
5. To study the risk involved in using ATM card .
.
6. To study the security measure taken by ATMs .
7. T study the future scope of ATMs .
.

1.3 Scope
9

The main purpose of the ATM division and information service is to provide the
customers financial flexibility, worldwide acceptance and round-the clock convenience.
Bank issues only VISA Credit Cards, the renowned Credit Card brand. Cardholders can
purchase goods/services up to the credit limit and can reuse the credit facility upon
repayment. Credit Card is a safer substitute to cash and is the major mode of payment
worldwide. Standard Chartered Bank is the first to introduce the TAKA CREDIT CARD.
The card is issued basically to a persons name and the specific person can use the card in
anywhere in Bangladesh. The business activity of Premier Bank Credit Card section is to
keep the records of all sales and customers requests, the information of cardholders and
reports them to necessary documents.

LIMITATIONS OF THE STUDY

1. Main limitation of the project is the sample size. Only a sample size of 100 is
considered for users of ATM and 50 for non-users of ATM for the project work.
2. The survey is restricted to Navi Mumbai only.
3. Analysis of the data, generated from the questionnaire is done on the assumption
that the respondents divulged correct information.
4. The period allowed is only 60 days which is not enough to study in depth.
5. Questionnaire may produce errors because of the different meanings attached by
the different groups of people to the same question, which leads to
misinterpretation of the data.

1.4 Literature Review

10

It is relevant to refer briefly to the previous studies and research in the related areas of the
subject to find out and to fill up the research gaps, if any. Literature on financial services can
generally be found; a number of books are available on banking related aspects as merchant
banking, loan syndication, securitization, profitability and productivity etc. but, few studies
are undertaken on the role of technology in the banking services

11

Chapter:2
Introduction Of ATM

12

2.1 Introduction of ATM

The growth of technology has changed the payment System world over during the past
two decades. More and more innovations are being introduced in both cash payment
system and non-cash payment systems. Cash in the form of notes and coin was the
principal method of payment system before the introduction of Banking paper
instruments such as Cheques and cash Transfer now have become a part of the
payment system with the popularity of banking. Electronic devices are making the job of
cash payment as well as non-cash payments easy and efficient.
ATM mean Automated teller machine, which is used within or outside the bank premises
for cash payments and other transaction, related services without intervention of human
being. ATM is installed in different forms as wall unit, window unit or lobby unit
depending upon the location and the need of target customers.
The introduction of Automated teller Machine and plastic card has given the banking
customers the facility of round the clock banking. In this Unit, we will discuss about the
various types of teller machines prevalent in the banking industry and how they are
instrumental in replacing our traditional payment systems.

13

Some ATMs allow withdrawal funded by clerical staff in retail merchant location. The
clerical staff are not considered bank teller. Many ATMs also allow people to deposit cash
or cheques, transfer money between their bank accounts, top up their mobile phones prepaid accounts or even buy postage stamps

14

2.2 HISTORY OF ATM

ATM can be traced back to the 1960s, when the first ATM machine was invented
by Scot John Shepherd-Barron and used by Barclays Bank in 1967. However, while
Shepherd-Barron has the major claim to fame, there have been many other individuals
who have also invented some version of the ATM. The machine itself has evolved over
the years, with the earlier versions restricted to only one or few banking functions. There
has been much debate, however, on who invented the first early versions of Automated
Teller Machine. But the history of ATM can be visibly traced back to the year of 1967.
In 1939, a rudimentary cash dispenser was invented by Luther George Simijian
and established by the City Bank of New York. However, the machine did not work much
and had to be removed within six months of putting up the machine. The early versions of
the ATM were restricted to cash withdrawal only. In the 1967 model, patented by
Shepherd-Barron, the plastic cards did not exist and instead a voucher with a strip of
radioactive substance was used for withdrawing cash. Consequently, the vouchers were
matched with a particular personal pin code used by the bank to identify the customer.
The ATM was inaugurated by renowned British actor, Reg Varney. The personal
identification number was initially a six numbered password, and was later changed to a
four numbered password. However, this automated teller machine was very different
from the modern day teller machines, which is based on an electronic system between the
different branches of the bank. Thus, the history of ATM has seen many changes over the
span of 25 years since 1939.

Another co-patent to the invention of the ATM was Don Wetzel, the Vice
President of Product Planning at Docutel. While the conceptualization began in 1968, the
patent was issued only in 1973. This cash dispenser was first used by the New York based
bank, namely, the Chemical Bank. As was the case with the ATMs of during those years,
they were hardly a multi-functional unit. Moreover, they were not based on any electronic
system. Hence, the debit cards, distinct from credit cards, were given to only selected
15

clients with good track records. The first ATM cards, with magnetic strips were
developed by three individuals, namely Don Wetzel, Tom Barnes and George Chastain.
While there were many developments in the history of ATM, the service itself took a
stronghold only in the 1970s. Today, the ATM service has become indispensable to our
modern day lives.

16

2.3 INVENTION OF ATM

Many people have claimed to be the inventor of the ATM. Some believe that
Luther George Simjian did it. Some believe that it was Don Wetzel. Still others say the
inventor is John Shepherd-Barron. John D. White has contacted ATMmachine.com and
gave very convincing evidence that he is the inventor of ATM and not Don Wetzel. James
Goodfellow of Scotland also contacted ATMmachine.com and gave us convincing
evidence of inventing ATM. Since the patent on an ATM as we know it was never applied
until years after Simjian, confusion on inventor till exists. One reason for confusion is
that John Shepherd-Barron lived in the United kingdom, James Goodfellow in Scotland,
while others lived in USA. We present all the evidence, as we know it on this page.

The ATM Inventors and the facts:

Luther George Simjian:
In the late 1930's, Luther George Simjian started building an earlier and not-so-successful
version of an ATM, but he did register related patents. He initially came up with the idea
of creating a hole-in-the-wall machine that would allow customers to make financial
transactions; the idea was met with a great deal of doubt. Starting in 1939, Simjian
registered 20 patents related to the device and persuaded what is now Citicorp to give it a
trial. After six months, the bank reported that there was little demand. Today, as you
know, there is a huge demand!

John Shepherd-Barron:
John Shepherd-Barron had an idea in the 1960's for a 24/7 cash dispenser. At the time, he
was managing director of De La Rue Instruments. De La Rue today manufactures cash
dispensers. In fact, there is a De La Rue cash dispenser in 1 out of every 5 ATM machines
built. If you want to believe that Shepherd-Barron invented the ATM, then the world's
first ATM was installed outside a north London branch of Barclays Bank in 1967. Later
In 1967, Shepherd-Barron presented his idea to a conference of 2,000 US bankers in
17

Miami, after the first ATMs had been installed in England. He spoke to the conference
about the new self-service banking device he developed. On December 31, 2004, John
Shepherd-Barron, was named an Officer of the Order of the British Empire, or OBE, by
the Queen of England for services to banking. "It was a bit late, but better late than
never," said Shepherd-Barron. Press releases stated that Shepherd-Barron was the
"Inventor of the ATM." But, was he?

James Goodfellow :
As a Development engineer with Smiths Industries Ltd, James Goodfellow was given the
project of developing an automatic cash dispenser in 1965. Chubb Lock & Safe Co. were
to provide the secure physical housing and the mechanical dispenser mechanism.
Eventually Mr. Goodfellow designed a system which accepted a machine readable
encrypted card, to which he added a numerical keypad. UK Patent No.1,197,183 with a
priority date of May 2 1966, covers this invention, and it is also covered by US Patent
No.3,905,461 and Patents granted by many other countries. These Patents list James
Goodfellow as inventor, along with the late A.I.O.Davies, the company General Manager.
This US Patent still describes the basic ATM function almost 40 years later. These
Machines were marketed by Chubb LTD and installed nationwide in the UK during the
late 60s and early 70s. You can read ATM inventor James Goodfellow's story here on
ATMmachine.com. Thanks goes out to Mr. Goodfellow for giving us his permission.
(Update: In 2006, James Goodfellow was selected by the Queen to be awarded an OBE
for services to Banking as patentee of the Personal Identification Number (PIN), and his
service to banking.

Don Wetzel:
18

In 1968, according to a NMAH interview, Don Wetzel, says he was the Vice President of
Product Planning at Docutel, the company that developed automated baggage-handling
equipment. He applied for a patent on an ATM machine. He said there were two other
inventors listed on the patent. They were Tom Barnes, a mechanical engineer and George
Chastain, an electrical engineer. It took five million dollars to develop their ATM
according to Mr. Wetzel. If you want to believe that Wetzel and company invented the
ATM, then you might want to read the next paragraph.

John D. White:
John D. White told ATMmachine.com that his work started in 1968. He told us that he
installed the first ATM at Rockville Center, LI for the then Chemical Bank in August
1973. His design was patented on May 9, 1973 for the Docutel Corporation and was filed
on July 29, 1970. The machine was called a "Credit Card Automatic Currency
Dispenser". Mr. White provided copies of his patent to ATMmachine.com for our review.
Indeed it states the inventor of the machine was John D. White and Kenneth Goldstein,
and the assignee on the patent was the Docutel Corporation. It does seem to us that this is
very convincing evidence that it was White and not Wetzel who received the patent.
There is also a statement in the patent that supports the idea of the modern ATM. "Both
the original code and the updated code are scrambled in accordance with a changing
key", which is basically what happens today. ATMs are programmed with security keys
and the code changes and are scrambled to prevent fraudulent access to credit card and
ATM numbers between the machine, the bank, and the network processor. We would like
to thank Mr. White for contacting us. The patent drawings he gave us look very much like
the free standing ATM that is sold on ATMmachine.com today.

Jairus Larson:
Jairus Larson told ATMmachine.com that although he did not invent the ATM, as far as
he is aware , he did develop the very first 'on-line' ATM (Diebold's "550"). The first
ATM's were all 'off-line' versions (sometimes referred to as 'stand-alone') meaning they
19

did not have any means to communicate with the bank. Today's ATMs are 'on-line'
meaning they communicate with the bank's computer system. Mr. Larson was kind
enough to give us his account of how this happened in the early 1970's. You can read
about Mr. Larson's ATM development here.

2.4 TYPES OF ATM CARDS

20

If you have a bank account there is a good chance that you have an ATM card, which
stands for Automated Teller Machine. This card gives you the ability to go to an ATM and
perform transactions. An ATM is a machine or computerized terminal that gives bank
customers the ability to access their funds without the need of a teller or bank employee.
Every customer has a four-digit pin code, as a matter of security that must be keyed in
before transactions can be performed. Customers have access to their funds 24 hours per
day, seven days per week

TYPES OF ATM CARDS

More people use plastic to pay for items than cash. There are many different types of
cards used to make purchases or withdraw money and many people don't think about the
differences. There are significant differences between ATM, debit and credit cards. There
are several different types of cards that fall under the category of an ATM card.

Basic ATM Card :

21

Your basic ATM card only has a few uses. It can be used at any ATM machine for the
bank that issued it and sometimes at other banks for a fee. You can use your ATM card to
withdraw and deposit money, check your account balance and transfer funds. Some ATM
cards also have a few more uses like paying loans and getting cash advances, however
ATM cards cannot be used to make purchases.

Debit ATM Card :

An ATM debit card has all the features of a regular ATM card with the added features of a
debit card. This card can be used to make purchases at any store or online. Typically they
will have a credit card logo on them, although they do not work the same way as credit
cards. Every time and ATM debit card is used; money is taken out of the checking
account it is linked to.

ATM Credit Cards :

A new type of debit card is available at some banks. This type of card has all the features
of the ATM debit card plus the features of a credit card. This card is not only attached to a
checking account, but also to a line of credit. This means that if the person overdrafts on
their account they will not incur any fees and will instead have money taken out of their
credit line to be paid back with interest when funds are made available.

2.5 PARTS OF ATM

22

As told earlier, there are mainly two input devices and four output devices for an
ATM. The input devices are:

Card Reader This is a part of the identification of your particular account number.
For this the magnetic stripe on the back of the ATM card is either swiped or pressed on
the card reader so that it captures your account information. To understand the account
information of the user, the data from the card is passed on to the host processor. The host
processor thus uses this data to get the information from the card holders bank.

Keypad After the card is recognized, the machine asks further details like the type of
withdrawal you prefer, your balance enquiry, and your personal identification number
(PIN) and so on. Since each card has a unique PIN number, there is very little chance for
someone else to withdraw money from your account. There are also separate laws to
protect the PIN code while sending it to the host processor. So, the PIN number is mostly
sent in encrypted form.

23

If your pin number is correct the ATM makes the necessary transactions for the required
amount.

For this transaction, there are mainly four outputs. They are:
Speaker When a particular key is pressed, the speaker provides the feedback as
audio.

Display Screen The questions asked by the ATM machine regarding the transaction
and the input from the user is all displayed on the display screen. Each step of withdrawal
is shown by the display screen. A CRT screen or even an LCD screen is commonly used
as an LCD screen.

24

Receipt printer All the details regarding your withdrawal like the date and time and
the amount withdrawn and also the balance amount in the bank is also shown in the
receipt. Thus a paper receipt of the current transaction is obtained by the user.

Cash dispenser This is the central system of the ATM machine. This is from where
the required money is obtained. From this portion the person can collect the money.

Functions of the Cash Dispenser:

As the whole mechanism is regarding the withdrawal of cash, the cash dispenser
should be highly efficient. These are the main functions that are to be carried out by the
cash dispenser.
It is the duty of the cash dispenser to count each bill and give the required
amount. If there are cases where the bills are stuck together they should be rejected and
instead new notes should be taken. If the money is worn, or even folded, they will be
moved to another section called the reject bin. All these actions are carried out by highprecision sensors.
There may be cases where the sensors may go wrong. To know this, the person
responsible for the machine checks the number of rejected notes at a certain interval. If
the numbers of notes are a lot than expected, then it would indicate that either the quality
of the bills is not good or there is a problem with the cash dispenser.
A complete record of each transaction made by a particular ATM machine is
recorded each day and is kept as a journal. This journal is later collected and then printed
out at times. This information regarding the transaction is kept by the authorities for a
period of 2 years. As there may be cases regarding a particular transaction going wrong,
the account owner or also the bank officers have a right to see the transaction. With this
printout the account holder can contact the host processor.

25

ATM Networking:
When a transaction is made, the details are inputted by the card holder. This
information is passed on to the host processor by the ATM machine. The host processor
checks these details with the authorized bank. If the details are correct, the requested
cash by the card holder is taken with the help of an electronic fund from the customers
bank account to the host processors account. After this function is carried out, the
processor sends an approval code to the ATM machine so that the cash can be transferred.

2.6HOW TO USE AN ATM

26

ATMs, standing for "Automatic Teller Machines", are an easy, convenient way to
access your account from almost anywhere. If you're new to them, don't worry. It's easy.
The instructions are right there, on the machine.

Steps involved in Depositing Money:

Be alert.
As you approach the ATM, look around for other people. If it is night time, pick an
ATM in a well-lit location. If using a drive-up ATM, pull up close to it so no one can
see you enter your PIN (Personal Identification Number). If you are uncomfortable
with the area or the people around the machine, find a different machine or use the
machine some other time

Fill out a deposit slip, if needed.

Take an envelope and prepare any deposits you will make ahead of time. Fill out a
deposit slip, if your bank requires one, and include it in the envelope. Write the amounts
of money you are depositing in the space provided.Write the total of all your cash on the
first line.

Endorse your check.

27

To deposit a check, sign the back of the check ( called "endorsing" the check) with
your name as it is written on the front. Depending on the rules of your bank, you may
also write "for deposit only" and include your account number, as shown.
Write the amount of each check on a line of the deposit slip. Beside it, write the
"fraction". This number appears on the face of the check, often in the upper right
corner near the check number. It tells your bank where the check came from. Add up
the amounts you are depositing and write the number down where you can see it after
you seal the envelope. Then, seal the envelope.

Insert your ATM Card into the machine.

Select a language.
Note that this option often only comes up where your card is registered as being from
another country, unless you live in a country or region with languages other than
English are in major use.

Enter your PIN (Personal Identification Number),

Then press Enter.
Select a transaction.
Deposit money.
If you want to deposit (put in) money:Enter the amount you will deposit. Confirm the
amount.Insert the envelope into the deposit slot when the machine opens it. Note that
some ATMs will not allow you to deposit money. In this case, you need to find one at a
branch.

Steps involved in Withdrawing Money:

28

1.Insert your ATM Card into the machine

2.Select a language.
3. Enter your PIN (Personal Identification Number), then press Enter.
4. Withdraw money.
If you want to withdraw (take out) money, select or enter the amount to withdraw.
Most machines dispense money in fixed amounts. You may be given a choice
between common amounts or you may be asked to enter a number that is a multiple
of 20 (20, 40, 60, 80, etc.).
Take the cash when the door opens. Put it directly into your wallet.
5.Choose whether to do an additional transaction. Select Yes or No.
Choose whether you want a receipt, select Yes or No. Take the receipt if you
requested it.

6. Wait while the system processes your transaction(s).

When the machine beeps at you, take your card, cash, and receipt (if applicable).
Always make sure that you have both your cash and your card.
7. Use the receipt to record the transaction in your check register or passbook

2.7 USES OF ATM

29

Cash Withdrawal and Balance Enquiry :

In spite of a number of innovative services being made available at many ATMs,
cash withdrawal stills remains the most accessed service at ATMs. However, the
migration of routine bank transactions like cash withdrawals and balance enquiries from
teller counters to ATMs significantly raises the potential for savings in employee costs
and greater employee focus on value-added revenue-enhancing activities such as selling
other financial products and advisory services to customers.
Cash / Cheque Deposit :
Again, due to the strong cash culture in India, cash deposits are most likely higher
than in other markets, especially cash deposits made by commercial customers such as
retail shopkeepers and those whose work involves substantial traveling. A high cash
withdrawal rate results in higher ATM servicing costs due to frequent cash replenishment
requirements. Recent developments in ATM technology have made it possible to recycle
cash in ATMs.
Currency notes received as cash deposits are counted; soiled notes separated and
deposited cash dispensed to fulfill withdrawal transactions. However, regulatory concerns
relating to identification of counterfeit notes and its depositors need to be addressed first.

ATM with Cheque deposit facility is not picking up in India, like other countries.
One of the reasons is the delay in collection of the cheque deposited in ATMs. Cheque
deposited in ATMs is to be collected and deposited in the designated branch for
collection. Another reason is the introduction of cheque deposit Kiosks by various Banks
especially Private sector ones. These are kept at each some important locations/branches
where customers can deposit there cheques which are collected at intervals which may be
difficult in ATMs.
Bill Payments

30

Most utilities have inadequate infrastructure for receiving bill payments resulting
in long queues at collection centres. Hence, bill payment at ATMs has achieved
noticeable acceptance by bank customers. Most banks provide this service through bilateral arrangements with bill-payment service providers. ATM users register their water,
electricity and telephone utility accounts with banks, check their dues at ATMs, approve
bill payments that are debited to their bank accounts and receive printed receipts for the
transactions. This service has the effect of improving customer satisfaction for both the
bank as well as the bill-payment service providers. Some Banks ATMs even accept
charitable contributions to Temples.
Sale of Paper sled Products:
ATMs are ideally suited to sell paper-based products and services such as tickets,
wireless phone recharge cards, financial products, etc. The screen interface allows
browsing and customization, access to bank accounts facilitate payments and printing
capabilities produce the actual product/service. A number of banks including ICICI Bank,
SBI and PNB have ATMs at Mumbais local railway stations to dispense season tickets to
commuters. Own-bank customers pay no extra charge while other bank customers pay a
fee of Rs. 50 for this extremely useful service of anytime ticket purchase. Railway season
tickets represent a high-volume mass-appeal product. As technical standards get
established and product/service sellers become aware of the ATM sales channel, nicheappeal high-margin products like entertainment tickets will join the fray.

Third Party Advertising:

31

In India, ATM advertising for third-party products is currently not allowed by

Regulatory authorities. However, the wait time at ATMs can be effectively used by banks
to promote their own brands, product and services. Furthermore, banks can tailor
advertising messages based on customer information easily available in their accounting
and CRM databases. Customer wait-time at ATMs while transactions get processed,
typically between 10 to 25 seconds, has been profitably used by many banks for their
own advertising.
Money Transfers:
Indians, who have migrated abroad or to cities, regularly use money orders and
wire transfers to send money to their families back home. ATM growth, especially in
rural India, will capture substantial business from the expensive wire transfer agents
network and the customer-service lacking postal network. In line with international
trends, ATMs can be made capable to dispense printed money orders or initiate wire
transfers against a charge on customers bank accounts. After addressing regulatory
hurdles, these services can even be made available to non-account holders through cash
payments using the currency acceptors built into ATMs. ATMs can also facilitate the
encashment of wire transfer amounts by allowing even non-account holders to withdraw
cash based on Pins or previously mailed special-purpose ATM cards.
Recharge Mobiles via ATMs:
ATMs are also used to recharge mobile phones. Initiated in 2004 by ICICI Bank,
now most ATM/Debit Cardholders are able to recharge their pre-paid subscriptions of
most mobile service providers from anywhere in the country using their banks ATMs or
The amount for recharging the mobile phone would be debited from the subscribers
Bank account and the subscription would be directly recharged accordingly. The mobile
top-up facility provides convenience on ATMs and through mobile phones using SMS.

2.8 FRAUD PREVENTION (FOR CONSUMERS)

32

Most ATM frauds happen due to the negligence of customers in using, and more
importantly, negligence of banks in educating their customers about the matters that
should be taken care of while at an ATM.
The number of ATM frauds in India is more in regard to negligence of the Personal
Identification Number (PIN), than by sophisticated crimes like skimming. Banks need to
develop a fraud policy the policy should be written and distributed to all employees,
The most important aspect for reducing ATM related fraud is to educate the customer.
Here is a compiled list of guidelines to help your customer from being an ATM fraud
victim:
Look for suspicious attachments:
Criminals often capture information through ATM skimming using devices that
steal magnetic strip information. At a glance, the skimmer looks just like a regular ATM
slot, but its an attachment that captures ATM card numbers. To spot one, the attachment
slightly protrudes from the machine and may not be parallel with the inherent grooves.
Sometimes, the equipment will even cut off the printed labels on the ATM. The skimmer
will not obtain PIN numbers, however. To get that, fraudsters place hidden cameras
facing the ATM screen. Theres also the helpful bystander (the criminal) who may be
standing by to kindly inform you the machine has had problems and offer to help. If you
do not feel safe at any time, press the ATM cancel button, remove your card and leave the
area immediately.

Minimize your time at the ATM:

33

The more time you spend at the ATM, the more vulnerable you are. If you need to
update your records after a transaction, one is advised do it at home or office, but not
while at the ATM. Even when depositing a cheque at the ATM, on should not make/sign
the cheque at the ATM. After the transaction, if you think you are being followed, go to
an area with a lot of people and call the police.
Make smart deposits:
Some ATMs allow you to directly deposit checks and cash into your accounts
without stuffing envelopes. As for the envelope-based deposits, make sure they go
through if it gets jammed and it doesnt fully go into the machine, the next person can
walk up and take it out. After having made the ATM deposit, compare your records with
the account statements or online banking records.
Avoid using ATMs at night:
While robberies are less prevalent than fraud at ATMs, theres still risk, especially
at night. And if you have to use an ATM late at night, use one at a bank itself. Financial
institutions have to follow certain guidelines and regulations as far as lighting is
concerned. They also have cameras on all the ATMs.
Be aware of your surroundings:
Before you slide your card into the machine, look around if the area appears safe
or if there is anybody who can see the PIN pad. Having the card ready before entering is
ATM premises is better than searching for it though the purse at the machine. While you
are fumbling with a wallet or purse, you are easy prey for a thief. A good rule of thumb is
to always shield your card, no matter how comfortable you are with the place. If your
card is stuck inside an ATM, be suspicious of anyone offering help. Immediately report
the incident to the bank
Keep your receipts and card before leaving the place:
34

Before you leave the machine, make sure you have your card. Also, do not leave
your receipt behind at the ATM. Keep copies of your receipts and compare them with
your monthly statement. As much as 83 percent of all ATM and debit fraud results from
stolen cards and discarded receipts bearing card/account numbers.
Memorize your PIN:
Many cardholders walk up to an ATM and pull out a piece of paper containing
four numbers. If you are not sure, make it a point that you dont keep the PIN and ATM
card together in your wallet If someone comes up and hits you over the head, theyre
going to have all your information right there. But ideally, one should never write down
the PIN number it should be memorized.
Never disclose your PIN to anyone:
Even bank officials do not require an ATM PIN neither to process an issue
involving ATMs, nor to remove a card stuck in the machine. Always change the PIN as
soon as you receive it. Preferably, change it every quarter. This habit will also help
remind you of changing the PIN if you find a suspicious activity.
Never provide information via e-mail:
About 3.5 percent of ATM and point-of-sale debit fraud originates from phasing
e-mails. Phi hers attempt to obtain information about your bank account by asking for
your PIN, account number and personal information. Much like ATM skimming
equipment, these e-mails appear legitimate. If you click on a link, you will be sent to a
Web site that looks exactly like the one the phi hers are imitating. Reputable companies
do not ask for information through e-mail. If you receive one of these e-mails, inform the
organization. And if you believe your accounts have been compromised, inform your
financial institution and cancel the account.

2.9 ADVANTAGES OF ATMs

35

1. 24-hour access to cash

Can withdraw up to Rs.10000/- per day on ATM card. The Fast Cash option saves
time by providing the cash in the denominations of Rs.500/-.
2. Balance Inquiry
The Updated balance will appear on the screen and will also be printed on the
transaction slip.
3. Mini statement request
Get details on last 9 transactions on account with the mini statement, along with
the balance.
4. Cheque book request
Send a request for a cheque book or account statement and it will arrive at the
doorstep.
5. Fund transfer
Transfer money from one of the accounts to another. Its easy. Select the account
from which to transfer, and then indicate the amount and the account to which it is
to be transferred. Both accounts must be linked to the ATM card and customer ID.
The maximum of 5 savings and 5 current accounts can be linked.
6. Pin change
Can conveniently change the PIN (given at the time of opening the account). Stay
totally in control and ensure complete security for the ATM card.
7. Bill pay
Pay cellular, telephone and electricity bills using ATM card.

36

8. Any time cash deposits

Cash or cheques can be deposited in to the account and the ATM will immediately
print a receipt for the same.

37

Disadvantages :
1. If person who does not have sufficient money in its account, then
in this case the ATM may not recognize his card.
2. May be ATMs may not be situated near by when it is urgently required.
3. If some one watches or hacks ATM machine then details of customers can be
misused.

4. Banks have maintained a limit of Rs 10,000/- per transaction. This information is

displayed on the ATM. The maximum limit is Rs.25000/- per day. No one can
withdraw money beyond this limit.

38

2.10 There are two types of ATMs:

1} Exterior ATMs and
2} Interior ATMs.
Exterior ATMs are located in various places like shopping centers, airports, railway
stations with or without drive in facility,
While the interior ATMs are located within the bank premises. ATMs that are directly
interactive with the Banks computer are known as on-line ATMs and the others are
known as off-line ATMs. On-line ATMs require the support of effective
telecommunication facility. In some foreign Banks ATMs the conversion of currency is
also possible. Interactive and voice recognizer ATMs are also installed to facilitate the
customers to interface in multi-language.

39

2.11 ATM Security Information

PIN NUMBER REVERSAL
If you should ever be forced by a robber to withdraw money from an ATM machine, you
can notify the police by entering your Pin # in reverse. For example if your pin number is
1234 then you would put in 4321. The ATM recognizes that your pin number is
backwards from the ATM card you placed in the machine. The machine will still give you
the money you requested, but unknown to the robber; the police will be immediately
dispatched to help you. This information was recently broadcasted on TV and it states
that it is seldom used because people don't know it exists. Please pass this along to
everyone possible.I will post some more trading tips on 13th August. Keep investing
money only in Indian Markets...
Physical security:
ATM is totally impregnable. Currency is stored in cassettes, which can be opened only
with special jigs, which are maintained in custody. These cassettes are placed inside the
ATM in special steel safe with a combination lock. The safe also has an alarm, which is
set-off when there are attempts to make unauthorized entry or when the safe door is
forced. The alarm system is an electronic one, which is wired into the central alarm
monitoring system. There is also a back up alarm system in case of power failure.
ATM Security Manual
An informed, security-conscious customer is far less likely to be defrauded. Foreword
This manual is designed to ensure optimal levels of customer safety and convenience at
ATMs.
It is true that law enforcement agencies around the world need the communities they
police to play a part in the upholding of law and order. In being more security-conscious,
and taking precautions whenever possible, citizens can help prevent crimes from taking
place. This is equally true when it comes to ATM usage.
40

Therefore, we would like to appeal to all regular users of ATMs to read this manual and
practice its simple guidelines.
The Global ATM Security Alliance was formed to assist law enforcement and fraud
prevention agencies and to strengthen the industrys protections against criminal activity.
We are proud to present this ATM Security Manual for Customers for your benefit. It
includes The Worlds Top Twenty Tips for ATM Use collected from Australia, New
Zealand, United States of America, United Kingdom, Europe, Canada, India and South
Africa.
ATM Safety
Automatic Teller Machines (ATMs) have revolutionized banking allowing customers to
do their banking 24 hours a day. They also, however, have been a great help for thieves
looking for quick cash. This workshop focuses on some of the things to be aware of when
you use your ATM.
Memorize Your PIN:
Don't write it down on your card, or on a piece of paper you store in your wallet. If your
card or wallet were stolen, the thief would have your PIN.

Be Ready for Your Transaction:

have your card ready, have your code in your head, and fill out any deposit envelopes
before you approach the ATM. Take some envelopes with you and complete them at
home or in your locked car at your next transactions.

Be Aware of Your Surroundings:

41

Look at the area around the ATM; is it well lit? Is it in a remote area, or are there many
cars passing by? Are there any cars or people 'hanging out' in the area? Is your gut
instinct telling you this is a safe area? Consider using the ATM during daylight hours,
when you can see better and others can see you better. If you must use an ATM at night,
consider one inside an open business like a grocery store.
Protect Your Code:
When using the ATM, block other people's view; don't allow others to see your code,
what type of transaction you are making, or how much money you are withdrawing.
Lines in the Area:
If there is a line behind you in the ATM and someone is too close to you, ask them to
step back. If they do not step back, you may want to cancel your transaction and either
wait in your car, or use the ATM at another time.

Quickly Put Away Your Money:

Put your money in your wallet and put your wallet away immediately. Count your money
when you are safely inside your car or home. Before you leave the ATM, check your
surroundings - is anyone around? Also put away your card and receipt.
Avoid Large Cash Withdrawals:
If you were robbed or lost your wallet, at least you would only lose a smaller amount of
cash.
Take All of Your Receipts With You:
Don't let a potential thief know how much money you have withdrawn or how much you
have in the bank.
If You are Driving:

42

Park as close as you can to the ATM, and lock your doors. Keep your keys handy so you
can enter your car quickly after completing your transaction.
Drive-Up ATMs:
Assess the surroundings of the ATM - are people 'hanging around' on foot or in vehicles?
If it feels unsafe to you, choose another ATM. Keep your doors locked. Keep all windows
up except the one you are using. Keep the car running and keep aware of your
surroundings.
Check Your Account Report:
Notify your bank and the police if you notice any suspicious or unauthorized ATM
transactions on your monthly statement.

If Your Card is Stolen:

Immediately contact the police department where you are, and contact the financial
institution responsible for the ATM card. Thieves typically have about a four to eight hour
window they can use stolen ATM and credit cards since owners don't report them stolen
right away.
Self-Service Banking and ATMs in the 21st Century
"This report is clearly authoritative and comprehensive an excellent summary of
current and future thinking." Ian Bain, Executive Director, Atmia Europe (ATM Industry
Europe)
This report is concerned with all types of self-service equipment or customer-activated
terminals, including the automated teller machine (ATM), automated depository, and
kiosk.
In practice, equipment other than the ATM is still in the minority, and the population
43

figures for ATMs therefore remain the best proxy for an overall assessment of the
installed self-service base.
Many external factors (including political, economic and social) will determine the rate
of growth and nature of the global estate.
Industry consensus predicts the further automation of the counter, the development of the
kiosk, and videoconferencing, as the self-service developments that will have the greatest
impact in the short term.
Research undertaken in the compilation of this report would support that viewpoint.
The total global estate of ATMs reached 1.142m by the end of 2001 (the latest date at
which consolidated market data is available) and is projected to reach a global total of
1.54m by end 2007.
Of these, 345,000 were located in the USA, a number that exceeded the machine
populations of every other region.
For example, outside Japan, the populous and economically dynamic Asia-Pacific region
still had fewer than 200,000 machines in operation.

44

Chapter:3
Research Methodology

3.1 RESEARCH METHODOLOGY:

45

Methodology is a way to systematically solve the research problem. It may be understood

as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a research in studying his research problem along with
the logic behind them.

Type of the study

Qualitative Study.
The type of the study or research used in this project is a qualitative research design. It
mainly involves surveys and facts findings enquiries of different kinds. The main
objective of qualitative research is to describe the state of affairs as it exists at present.
The major purpose of qualitative research is a description of the state of the affairs, as it
exists at present. Thus a qualitative study is a fact finding investigation with adequate
interpretation. It is the simplest type of research. It focuses on particular aspects or
dimensions of the problem studied. It is designed that it gathers qualitative information
and provides information for formulating more sophisticated studies. The criteria for
selecting this particular design are that, the problem of the project must be described and
not arguable. The data collected is amenable to statistical analysis and has accuracy and
significance. It is possible to develop to valid standards of comparison. It tends itself to
the verifiable procedure of collection and analysis of data. Qualitative study objective
aim at identifying the various characteristics of a company problem under study.

46

3.2TYPE OF DATA:
1.Primary Data:
The collection of data true questioner from the consumer or the people who will become
the possible customer for the product. The sample is collected from the different age
group. And field back from the customers

Tools for collecting primary data:

(A) QUESTIONNAIRE METHOD
The major motive of taking this method was that it covers large population at a time.
One can have direct contact with the respondents. The questionnaire was distributed to
the customers taking sample size 50.

2.Secondary data:
The data which is used for the research is secondary data. The secondary data is the data
which is duplicate of primary data. The data (published or unpublished) which have
already been collected and processed by some agency or person and taken over from
there and used by any other agency for their statistical work are termed as person and
taken over from there and used by any other agency for their statistical work are termed
as secondary data as far as second agency is concerned. The second agency if and when
it publishes and files such data becomes the secondary source to anyone who later uses
these data. In other words secondary source is the agency who publishes for use by others
the data which was not originally collected and processed by it.

47

Sources of data
Unpublished sources:
i. The data can be governments or private offices can be collected from these are
unpublished data.
ii. The research work, the secret documents.

Published sources:
i. Central and state government publication publishes the various statistics like crop
production, population, statistic, wages expenses.
ii. The commerce association, commerce and trade association, Indian chamber of
commerce federation are publishes several data.

iii. News paper, journals, periodicals etc. publishes the several data.
iv. Some private organization, research berceuse, universities publishes several datas.

48

3.3 Sample design:

The way of selecting a sample is popularly known as sample design is a definite plan
determined before any are actually collected for obtaining a sample from a given
population. A brief mention of the important sample design is as follows.

1.Deliberate sampling:
Deliberate sampling is also known as purposive or non-probability sampling. This
sampling method involves deliberate selection of particular units of the universe for
constituting a sample which represent universe.

2.Simple random sampling:

This type of sampling is also known as chance sampling or probability sampling where
each and every item in the population has an equal chance of inclusion in the sample and
each one of the possible samples, in case of finite universe, has the same probability of
being selected.

3.Systematic sampling:
In some instance the most practical way of sampling is to every 15 th name on a list, every
10th house on one side of a street and so on.
4.Stratified sampling:
In this technique, the population is stratified into number of non-overpopulation sub
population or strata and sample item are selected from each stratum.

5.Cluster sampling:
Cluster sampling involves grouping the population and then selecting the group of cluster
rather than individual elements for inclusion in the sample.

49

Chapter : 4
Data Analysis and
Interpretation

50

Q1 Do you have ATM card?

Particulars

No. Of Respondents

Percentage

Yes
No

39

78%
22%

11

51

Q2 How do you find depositing money in ATM?

Particulars

No. Of Respondents

Percentage

Complex
Simple

33

34%
66%

17

52

Q3 Do you find using ATM card Risky?

Particulars

No. Of Respondents

Yes
No

42

53

Q4 Which bank you prefer for ATM cards?

Particulars

No. Of Respondents

Percentage

Private Bank

10

20%

Nationalize

35

70%

Both

10%

54

5.According to you which bank Atm service are best?

Particulars

No. Of Respondents

Percentage

HDFC

16%

ICICI

10

20%

AXIS

18%

SBI

18

36%

OTHER

10%

55

Q6 How satisfied are you with the following services provide through
ATM?

56

Comparison between SBI and ICICI ATM

1. Which bank ATM do you prefer?
Particulars

No. Of Respondents

Percentage

SBI
ICICI

31

62%
38%

19

57

Q2 Which of the following bank provides quick ATM services ?

Particulars

No. Of Respondents

Percentage

SBI
ICICI

26

52%
48%

24

58

Q3 Rate the condition of ATM machine of SBI and ICICI?

59

Q4Which ATM do you feel more secure?

60

Q5Which bank has more convenient ATM services?

61

Q6 Which bank has more user friendly ATM machine interface?

62

Q7 How satisfied are you with the availability of cash in ATM machine?

63

Q8 What is the overall satisfaction with ATM of SBI and ICICI?

64

Q9 Rate the their service related to their personal customer care

assistance?

65

Q10 Rate the accessibility of following ATM ?

66

Q11 Rate the ambience of the ATM branch of SBI and ICICI ?

67

68

69

Chapter : 5
Findings,Suggestions,
Conclusion

70

Findings
Banks, magazines and news papers are the major sources of awareness of ATMs.
Most of the customers are not satisfied with the withdrawal limit of the ATMs.
Most of the people used ATM Cards in India.
They can easily withdrawal the money at any time.

71

Suggestions
1. Banks play a major role in influencing the customers to opt for the ATM services,
television and news papers must be used to the fullest extent to influence the
customers
2. Customers usually consider locality of ATMs, service, security, more withdrawal
facility and reasonable price for owning ATM cards. So there is much scope in
improving these fields.
3. Proper maintenance should be done to overcome the technical problems such as
out of order situation, frequent repairs, temporary shut-down and satellite
problems in order to provide better service to the customers.

4. More bank branches should be set in other cities to access money anywhere, any
time (online).
5. Service charge should be reduced to encourage more withdrawal for the
customers.
6. Security should be provided to the ATM users, as security is the main reason for
not opting of ATM services by the account holders.

72

Conclusion
In this era of growing competition among the banks, ATMs have played a vital
role in helping the bank to sustain in the market. The ATMs have gained worldwide
popularity within a few years. ATM machines are easy to operate and hence, attract more
and more customers. There are quite of innovations, which are being taken place in the
ATM machine. The locations of ATMs are the key location of any particular area. ATMs
is a form of easy banking. The aim of banks of setting of ATMs is to cater to the needs of
the customers. The flexibility of the ATMs has increased so much that now-a-days, have
been reached the doorsteps of the customers. The customers using the ATM machine are
satisfied with the service and have very less complaints about the machines.

73

BIBLIOGRAPHY
Fundamentals of Software Engineering

Internet
www.google.com
www.ask.com
www.microsoft.com
www.iit.edu.com

www.sbi bank.com
www.icici bank.com

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