1

ATM Simulation System using java

CHAPTER 1
Introduction
The Automated Teller Machine (ATM) has become an essential part of modern
banking systems, providing users with 24/7 access to their accounts for essential
services such as cash withdrawal, balance inquiry, money deposits, and more.
ATMs have revolutionized the way customers interact with their banks, offering
convenience and speed in performing financial transactions. An ATM
Simulation System in Java is a great project to understand the fundamental
workings of these machines, while also enhancing your programming and
software development skills. It allows developers to mimic the functionalities of
an ATM and learn about essential topics such as object-oriented programming,
user authentication, transaction management, and data handling.

This project simulates the behavior of an ATM system, which typically requires
users to input their account details (such as account number and PIN), check
their account balance, deposit funds into their account, withdraw cash, and
finally, log out. While real-world ATM systems are complex and involve secure
communication protocols, card readers, and physical security measures, a
simplified version can be implemented in Java using the core principles of
software development, such as classes, methods, loops, conditionals, and
exception handling.

One of the key challenges in building an ATM simulation is designing the

system in a way that closely models real-world behavior while also keeping the
codebase simple and maintainable. By focusing on core functionalities such as
user authentication, balance management, and transaction processing, the
project provides a platform for learning how to manage user input, perform
calculations, and store and update data within an object-oriented structure. Java,
with its strong object-oriented features, is an ideal programming language for
this purpose, allowing developers to easily manage complex relationships
between users, their bank accounts, and their transactions.

The ATM system needs to simulate various critical operations that a real ATM
would offer, such as logging in using an account number and PIN, handling
account balance inquiries, facilitating deposits and withdrawals, and ensuring
that account balances are updated accurately. Furthermore, the system needs to
simulate error handling, such as incorrect login credentials or insufficient funds
during a withdrawal. For example, when a user attempts to withdraw more

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
1
 2
ATM Simulation System using java

money than they have in their account, the system should prevent the
transaction and display an appropriate error message. Similarly, depositing
money into an account should properly update the balance and provide feedback
to the user.

Building this system involves more than just programming these basic features;
it also entails considering the user interface, which in this case will be text-
based, as the project is designed to run on a command-line interface. The user
will interact with the ATM through a series of prompts and inputs. After
successfully logging in, the user can choose from various options to perform
their banking transactions. Each operation, whether it’s checking the balance or
making a withdrawal, will be carried out after the user’s input is validated. For
example, when a withdrawal is requested, the system must first check if the
requested amount is less than or equal to the available balance.

From a technical perspective, the project revolves around the principles of

Object-Oriented Programming (OOP), which is the foundation for managing
real-world objects and their interactions in software development. The core
components of the system will involve the creation of at least two main classes:
BankAccount and ATM. The BankAccount class will represent the user's bank
account, including information such as the account number, PIN, and balance.
This class will also provide methods to check the balance, deposit money, and
withdraw funds. The ATM class will be responsible for the user interaction,
processing inputs, managing the login process, and performing transactions.

Additionally, the project will introduce concepts such as encapsulation,

inheritance, and polymorphism. For instance, encapsulation will be used to keep
the user’s sensitive information (such as account number and PIN) private,
while inheritance could be used to extend the ATM system into more advanced
functionalities, such as account types (savings, checking, etc.). Polymorphism
will allow the system to handle multiple transaction types in a uniform manner,
making the code more flexible and scalable for future extensions.

A primary advantage of the ATM simulation project is its simplicity while still
being challenging enough to teach developers about fundamental programming
concepts. The project serves as a stepping stone for beginners who want to
grasp the basics of object-oriented design and the Java programming language,
while also being a valuable practice for more advanced developers who may
want to build upon the functionality to create more sophisticated systems.
Beyond the core operations of login, balance inquiry, deposit, and withdrawal,

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
2
 3
ATM Simulation System using java

this system could be extended to handle features such as transferring money

between

1.1Background of the Project

An Automated Teller Machine (ATM) is a self-service banking terminal that
allows users to perform basic financial transactions without the need for human
interaction. An ATM simulation system replicates the functionalities of a
physical ATM in a virtual environment to test, train, or study its operations. This
background explores the origin, purpose, and significance of such systems.

Origin of ATMs
Introduction of ATMs:

The first ATM was introduced in the late 1960s by John Shepherd-Barron and
installed by Barclays Bank in London in 1967.

ATMs revolutionized banking by enabling customers to access cash and

perform transactions 24/7.

Technology Evolution:
Over the years, ATMs have evolved to include features such as deposits, fund
transfers, balance inquiries, and even bill payments.

2. Need for ATM Simulation Systems

The development of ATM simulation systems arose due to the following needs:
Training: To train banking staff and customers on ATM usage without involving
live systems.

Testing: To test new features, software, and hardware in a controlled

environment before deployment.

Education: To teach students and professionals about ATM operations and

banking technology.

Cost Efficiency: To reduce costs associated with physical prototypes or real

ATMs during the development phase.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
3
 4
ATM Simulation System using java

3. Components of ATM Simulation

Core Features:

PIN verification.

Account balance inquiry.

Cash withdrawal, deposit, and transfer functionalities.

Security:

Encryption for data protection.

Prevention of unauthorized access.

Interface:

A user-friendly graphical interface resembling a physical ATM's screen.

Input methods to simulate keypads, card readers, and touchscreens.

4. Benefits of ATM Simulation Systems

Risk-Free Environment: Simulations allow testing without risking real customer

data or funds.

Scalability: Easily adaptable for testing various scenarios, such as international

transactions or different banking systems.

Debugging and Error Testing: Identifies issues in software or processes before

deploying to real ATMs.

Learning Tool: Provides a hands-on experience for users to understand the flow
of ATM operations.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
4
 5
ATM Simulation System using java

5. Technological Advancements

Modern ATM simulation systems leverage:

Programming Languages: Commonly developed using Java, Python, or C++.

Databases: Simulated databases store user accounts, PINs, and transaction

histories.

Virtualization Tools: Tools like virtual machines and GUI frameworks to mimic
ATM interfaces.

Integration of AI: Some simulations include AI to predict user behavior or

detect fraud.

6. Applications of ATM Simulation Systems

Banking Industry: Used by banks for internal training and testing purposes.

Educational Institutions: Helps students understand banking processes and IT

infrastructure.
Software Development: Used by developers to test ATM software updates or
create new functionalities.
1.2 Problem Statement
Traditional banking services often require users to visit bank branches, which
can be time-consuming and inconvenient. Automated Teller Machines (ATMs)
were introduced to address this challenge, providing customers with round-the-
clock access to banking services. However, developing and testing ATM
functionalities in a real environment is complex, expensive, and resource-
intensive.The ATM simulation system aims to provide a software-based
platform that replicates real-world ATM functionalities, enabling users to
perform financial transactions in a virtual environment. The system focuses on
user authentication, secure transactions, and accurate account management
without relying on physical ATM hardware.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
5
 6
ATM Simulation System using java

1.3 Objectives
The objective of the ATM simulation system is to design a comprehensive and
user-friendly virtual platform that replicates the core functionalities of a
physical ATM, including PIN authentication, cash withdrawals, deposits,
balance inquiries, fund transfers, and transaction history. This simulation system
seeks to provide a secure and controlled environment for multiple purposes,
such as testing new software features, training bank staff and customers, and
educating students on banking operations and technology. It eliminates the risks
and challenges associated with using physical ATMs for such activities, such as
data breaches, financial errors, or operational disruptions. Additionally, the
system offers a cost-effective solution for financial institutions and developers
to experiment with new features, enhance security protocols, and improve user
experiences. By enabling hands-on interaction with ATM functionalities in a
risk-free environment, the simulation system plays a vital role in fostering
innovation, supporting professional training, and improving the overall
reliability and efficiency of ATM-related technologies.

1.4 Summary
The ATM simulation system is a virtual platform designed to replicate the
functionalities of a physical Automated Teller Machine, such as PIN
authentication, cash withdrawals, deposits, balance inquiries, and fund transfers.
It serves as a cost-effective, secure, and user-friendly tool for testing, training,
and educational purposes. By providing a controlled environment, the system
eliminates the risks associated with real-world ATMs, such as data breaches and
operational disruptions, while enabling developers to test software updates,
enhance security measures, and improve user experiences. Additionally, it
supports banks in training staff and educating customers, as well as serving as a
practical tool for students to learn about banking technology. This system plays
a crucial role in fostering innovation, improving reliability, and ensuring the
efficiency of ATM-related operations.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
6
 7
ATM Simulation System using java

CHAPTER 2
METHODOLOGY
The methodology of an ATM simulation system involves the systematic process
of designing, implementing, and testing the functionality of an ATM in a virtual
or controlled environment. Here’s an outline of the typical methodology:

1. Problem Definition

Identify the key requirements of the ATM system.

Define the purpose of the simulation (e.g., testing functionality, user experience,
training).

List the primary functionalities (e.g., cash withdrawal, balance inquiry, deposits,
PIN verification).

2. Requirements Analysis

Functional Requirements:

User authentication via PIN or card number.

Options for withdrawals, deposits, and fund transfers.
Account balance display and transaction history.

Non-Functional Requirements:

Security measures (e.g., encryption).

Fast and reliable performance.
User-friendly interface.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
7
 8
ATM Simulation System using java

3. System Design

Architecture Design:

Design the system architecture with key components like the user interface,
database, and transaction processing system.

Flow Diagram:

Create flowcharts or state diagrams to represent processes (e.g., user

authentication, transaction flow).

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
8
 9
ATM Simulation System using java

Modules:

Divide the system into modules (e.g., Authentication Module, Transaction

Module, Admin Module).

4. Development

Tools and Technologies:

Choose programming languages (e.g., Java, Python, or C++).

Select a database management system for storing account and transaction

details.

Implementation:

Develop the code for each module.

Implement database connections for account data storage.

5. Testing

Unit Testing:

Test individual modules (e.g., PIN validation, cash withdrawal).

Integration Testing:

Test how modules interact (e.g., how the Authentication Module interacts with
the Transaction Module).

System Testing:

Simulate real-world scenarios to test the overall performance of the system.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
9
 10
ATM Simulation System using java

Security Testing:

Test the encryption of sensitive data and protection against unauthorized access.

6. User Interface Design

Design a user-friendly graphical or command-line interface for interaction.

Include clear instructions, easy navigation, and error handling (e.g., for invalid
PINs or insufficient funds).

7. Simulation Setup

Mock Database:Create a mock database with test accounts, PINs, and balances.

Simulated ATM Hardware:Simulate ATM components (e.g., card reader,

keypad, screen, and cash dispenser).

Scenarios:Develop various scenarios to simulate realistic user interactions.

8. Evaluation and Validation

Compare simulation results with expected outcomes.

Evaluate system performance, user satisfaction, and security.

Validate that the system meets the initial requirements.

9. Documentation

Document the entire process, including code, designs, and test cases.

Provide a user manual for the simulation system.

10. Deployment and Maintenance

Deploy the simulation system for training or testing purposes.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
10
 11
ATM Simulation System using java

Monitor performance and fix any identified issues.

CHAPTER 3
SYSTEM SPECIFICATION
Software Requirements
• Operating System: Windows/Linux/MacOS
• Programming Language: Java (JDK 17 or later)
• Development Environment: Eclipse/IntelliJ IDEA
• Database: MySQL/SQLite (optional for data persistence)
• Frameworks: Java Swing (for UI), JDBC (for database
connectivity)

Hardware Requirements
• Processor: Intel Core i3 or above
• RAM: 4GB or higher
• Hard Disk: 500GB or above
• Monitor: Standard 15.6” display

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
11
 12
ATM Simulation System using java

CHAPTER-4
Implementation
import java.util.Scanner;

class ATM {
private double balance;
private String pin;

public ATM(double initialBalance, String pin) {

this.balance = initialBalance;
this.pin = pin;
}

// Check balance
public void checkBalance() {
System.out.printf("Your current balance is: $%.2f\n", balance);
}

// Deposit money
public void deposit(double amount) {
if (amount > 0) {
balance += amount;
System.out.printf("$%.2f deposited successfully.\n", amount);
} else {
System.out.println("Deposit amount must be greater than zero.");
}
}

// Withdraw money
public void withdraw(double amount) {
if (amount <= 0) {
System.out.println("Withdrawal amount must be greater than zero.");
} else if (amount > balance) {

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
12
 13
ATM Simulation System using java

System.out.println("Insufficient funds.");
} else {
balance -= amount;
System.out.printf("$%.2f withdrawn successfully.\n", amount);
}
}

// Change pin
public void changePin(String oldPin, String newPin) {
if (oldPin.equals(pin)) {
pin = newPin;
System.out.println("PIN changed successfully.");
} else {
System.out.println("Incorrect old PIN.");
}
}

// Check pin
public boolean checkPin(String enteredPin) {
return pin.equals(enteredPin);
}
}

public class ATMSystem {

public static void main(String[] args) {

Scanner scanner = new Scanner(System.in);

// Welcome message
System.out.println("Welcome to the ATM System");

// Set the PIN

System.out.print("Set your PIN (4 digits): ");
String pin = scanner.nextLine();

// ATM Login
System.out.print("\nATM Login\nEnter your PIN: ");
String enteredPin = scanner.nextLine();

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
13
 14
ATM Simulation System using java

if (!pin.equals(enteredPin)) {
System.out.println("Incorrect PIN. Exiting the system.");
return;
}

// Set initial balance after successful login

System.out.print("Enter your initial balance: $");
double initialBalance = scanner.nextDouble();
ATM atm = new ATM(initialBalance, pin);

// Main menu loop

while (true) {
System.out.println("\nATM Menu:");
System.out.println("1. Check Balance");
System.out.println("2. Deposit Money");
System.out.println("3. Withdraw Money");
System.out.println("4. Change PIN");
System.out.println("5. Exit");

System.out.print("Choose an option: ");

int choice = scanner.nextInt();

switch (choice) {
case 1:
atm.checkBalance();
break;
case 2:
System.out.print("Enter amount to deposit: $");
double depositAmount = scanner.nextDouble();
atm.deposit(depositAmount);
break;
case 3:
System.out.print("Enter amount to withdraw: $");
double withdrawAmount = scanner.nextDouble();
atm.withdraw(withdrawAmount);
break;
case 4:
scanner.nextLine(); // Consume the newline character
System.out.print("Enter your old PIN: ");

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
14
 15
ATM Simulation System using java

String oldPin = scanner.nextLine();

System.out.print("Enter your new PIN: ");
String newPin = scanner.nextLine();
atm.changePin(oldPin, newPin);
break;
case 5:
System.out.println("Exiting the system. Goodbye!");
scanner.close();
return;
default:
System.out.println("Invalid choice. Please try again.");
}
}
}
}

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
15
 16
ATM Simulation System using java

CHAPTER-5

RESULT

Logical Flow Correction:

The PIN is set before login, ensuring the user knows the correct credentials.

The initial balance is set after successful login, preventing balance setup by
unauthorized users.

Security Features:

Immediate exit on incorrect PIN prevents brute-force login attempts.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
16
 17
ATM Simulation System using java

The PIN change process requires entering the old PIN first, preventing
unauthorized modifications.
User Experience:

The menu loop provides a structured interaction for users.

Meaningful messages guide the user through the process.

Potential Improvements:
1. PIN Format Validation:
Ensure the PIN is exactly 4 digits (numeric) to avoid invalid inputs.
2. Limited Login Attempts:

Allow only 3 attempts before locking out.

3. Enhanced Input Handling:

Prevent invalid inputs (e.g., entering letters where numbers are expected).
Final Verdict:

The updated code provides a well-structured, user-friendly, and secure ATM

system. With minor improvements like PIN validation, limited login attempts,
and better input handling, it can become more robust and foolproof.

Features of the System

• Secure user authentication with PIN.
• Balance inquiry functionality.
• Cash withdrawal and deposit options.
• Error handling for invalid inputs.
• User-friendly graphical interface.
Security Aspects
The system employs:
• PIN-based authentication.
• Data validation to prevent invalid inputs.
• Session management to prevent unauthorized access.

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
17
 18
ATM Simulation System using java

Conclusion
The ATM simulation system serves as an essential tool for understanding the
core functionalities of an automated teller machine. It replicates real-world
banking scenarios, including account balance inquiries, cash withdrawals,
deposits, and fund transfers, all within a virtual environment. The system
ensures user-friendly interaction while incorporating essential security measures
such as PIN authentication.
This simulation is particularly valuable for testing and training purposes,
allowing users to grasp the intricacies of ATM operations without the risk of
financial loss. It also aids in evaluating system efficiency and identifying
potential areas for improvement.
In conclusion, the ATM simulation system provides a practical and reliable
platform to enhance user experience, test software functionalities, and prepare
users for real-world interactions with ATMs, ensuring smoother banking
operations.
Future Enhancements
• Integration with online banking systems.
• Biometric authentication features.
• Support for multiple currencies and languages.
References
1. Java Programming by Herbert Schildt
2. Oracle Java Documentation
3. O’Reilly’s Design Patterns in Java
4. www.google.com
5. www.geeksforgeeks.com

Department Of Computer Science and Engineering

Faculty of Engineering and Technology
(Exclusively For Women) Sharnbasva University, Kalaburagi
18