Introduction Today banks have become a part and parcel of every individual’s life. When the business and commerce tend to be on the electronic nodes, it covers any form of business including banking. Modern banks have to be well-versed in Information Technology –its users and applications. Banking divisions have to be IT based, with the spread of digital economy. E-banking is more of a science and art. E-banking is knowledge-based and mostly scientific in using electronic devices of the computer revolution.
Banks play an important role in the modern business world. The word, ‘Bank’ is said to have derived from the French word ‘Banco’ or Bacus (or) Banc (or) ‘Banque’ which means a ‘Bench’. In fact, the early Jews in Lombardy transacted their banking business by sitting on benches. The term bank was symbolically used to denote a money changer. The word “Bank’ refers an institution which borrows money from the public sector at lesser rate of interest and lends money to the needy at higher rate of interest.
Continually evolving computer hardware and software have allowed organizations to significantly change their work processes, new products and services have been developed and the technologies continue to cover their capabilities and applications. ATMs –Automated Teller Machine ATMs have become the order of the day in banking. Most banks are networking the ATMs. A network of connected ATMs of various banks has resulted in the improvement of customer services. They can effectively reach out a large customer base at low cost. The customers by inserting a plastic card get currency notes from ATMs and their bank balance is revealed through ATMs.
When the card is inserted in the ATM, the machine identifies the card holder and asks for Personal Identification Number (PIN). When the card holder pressed the correct number, the machine shows the menu screen to transact all types of transactions like withdrawals, deposits, balance enquiry, change of PIN etc. Banks have started dispensing railway tickets, airway tickets, movie tickets etc. , through ATMs. It has attained popularity very quickly and hence the researcher has made an attempt to make a study about ATMs. Objectives of the study * To understand the consumer satisfaction on ATMs. To understand the different types of ATM cards used by customers in different banks viz. , HDFC, ICICI, AXIS Bank, SBI and Canara Bank. * To identify the problems faced by card holders. * To suggest measures to minimize the problems of ATM card holders. Need for this study The main aim of this study is to get in depth knowledge about ATMs which has made a remarkable simplification in the banking operations and activities. For Survival Finance Security Bank Electronic ATM Importance of this study Bank provides services to their customers. One of the services is ATM.
Now a days, ATMs have become indispensable for cash withdrawals, balance enquiry and for depositing the money. ATMs are beneficial from the point of view of customers especially and it reduces the workload of banks. The duty of the banker does not end with providing services during banking hours but to provide services all through the day inclusive of holidays. ATM Banking has become successful due to its two main features, namely: * Any time banking – 24 hrs banking * Any where banking – Global banking Due to these two outstanding features, the ATM banking gets highlighted amongst the existing branch banking.
Methodology The study is an analytical study which enables the researcher to understand about the customer satisfaction of ATM cards. Different banks are issuing ATM cards. The respondents using ATM cards were contacted using simple random sampling. Questionnaires were given to the respondents through friends and relatives. Most of consumers were contacted in ATM centers. This study is purely analytical in nature and is based on primary data collected from banks and customers. The data were collected from customers in front of ATM centers through questionnaires and personal interviews from banks.
Secondary data were collected for the purpose of the study from journals of banks, bank brouchers, websites of the banks and articles in newspapers were also considered to understand the development in this field. For this study, both primary and secondary data have been used. Sampling Exact number of customers using ATM cards is not published by banks. The data regarding ATMs were collected by means of questionnaires which were issued and collected from 125 customers. Statistical Tools used The study is an analytical study. Hence, the tools such as percentages, charts and bar diagrams have been used in this study.
These tools have been used for the purpose of analyzing the data collected. Area of the Study Only few banks have been taken for the study namely HDFC, ICICI, AXIS BANK, SBI and CANARA BANK located in Tiruchirappalli. Five areas have been selected for this study namely Thillainagar, Cantonment, Salai road, Puthur and Chataram. Limitations of the study The study is confined only to Trichy banks and so the conclusions drawn from this analysis cannot be generalized. The following are the limitations of this study: * Limited area is selected for the study due to time constraint. * The respondents have been selected using convenient ampling. * The drawbacks of convenient sampling method exist in this study. * Personal opinion on usage couldn’t be collected from many respondents for want of time. Chapter Scheme The present study has been divided into five chapters, namely: Chapter-IIntroduction Chapter-IIReview of Literature Chapter-IIIProfile of the Company Chapter-IVAnalysis and Interpretation of data Chapter-VFindings, Suggestions and Conclusion. Review of Literature B. Santhanam, in his book “Financial services” states that ATMs help a customer to withdraw money even during non-banking hours without entering the bank premises.
As this system does not involve the signature of the customers, it is important for the customer to keep his credit card and the PIN (Personal Identification Number) safely or else anybody who comes to know of the PIN and who gets hold of the credit card without the knowledge of the customer can withdraw money fraudulently. E. Gordon and K. N. Natarajan, in his book “Indian Financial System” states that ATMs have become the order of the day in banking. Though they were evolved as novel cash dispensers, now they have emergedas a marketing tool to target the masses.
There are about 9500 off-site and on-site ATMs. ATMs of many banks are nothing but virtual branches, as customers can conduct any transactions, through the touch screens. H. C. Agarwal, in his book “Banking Law and Practice” defines an ATM as a device located on or off the banks premises to receive and dispense cash 24 hours a day throughout the year from the banks by customers. Customers can also use ATMs for depositing cheques, obtaining balance, obtaining statement of last few transactions in his account, requiring cheque books and payment of card bills for transferring fund from one account to another.
S. V. Srinivasan Vallabhan, in his article, “Virtual banking – ATM usage” said that people spend three to four hours to go and do bank transactions in the earlier days. But, after the advent of ATMs, the customers and bankers have been relieved from tense circumstances and this enables them to maintain good relationship. His findings were: * Professionals, self-employed and working women are more in number than other category of people with regard to ATM holding. Around 35per cent of respondents use ATMs have income of Rs. 1,75,000. It is inferred that marital status, age and educational qualification of sample respondents do not significantly differ with regard to the area of residence. Lakshman, in his article “ATM service and perceptions of users: A case study of Andhra Bank” made an analysis about the factors motivating the respondents to choose Andhra Bank ATM card and their satisfaction about ATM service. His findings were: * In relation to education, income and gender background, it can be observed that higher income groups with qualification of degree and above from male category perceived higher satisfaction compared to others. Majority of the respondents are motivated through this training service from Andhra bank based on safety factor. Nalini Prava Tripathy, in her book “Financial Services” states that ATMs are used by banks for making the customer dealing easier. This system is also known as “Any time Money” because it allows customers to withdraw money at any time from the bank. It increases existing business and generates new business. It allows the customer to transfer money to and from accounts, deposit cheques or cash, view account information. It reduces risk and cost. Automatic Teller Machine
An Automatic Teller Machine or ATM card is a Magnetic- Stripped bank card that was primarily introduced to allow customers to withdraw cash from their account without human intervention. An automated teller machine or the automatic banking machine is a computerized telecommunications device that provides the clients of financial institutions with access to financial transactions in public space without the need for a cashier, human clerk or bank teller. On most of the modern ATMs, the customer is identified by inserting a plastic ATM card or a plastic smartcard with a chip.
ATMs are known by various other names including automated transaction machine, automated banking machine, cash point (in Britain), money machine, bank machine, cash machine, hole-in-the-wall and anytime money(in India). History of ATM Automated teller machine (ATM) was invented by Don Wetzel who was the Co-patentee and chief conceptualist of the ATM. He got this idea while he was waiting in a queue at Dallas Bank in America. In 1968, Wetzel was the vice president of product planning at Docutel, the company that developed automated baggage-handling equipment.
The other two inventors listed on the patent were Tom Barnes, the chief Mechanical Engineer and George Chastain, the electrical engineer. It took five million dollars to develop the ATM. The concept of ATM first began in 1968 and a working prototype came out in 1969. The machine installed in the year 1968 was actually in the wall of the bank, which was out on the street. The most visible and perhaps most revolutionary, element of the virtual banking revolution is the cash machine or the Automated Teller Machine (ATM), as it is more popularly known. The use of ATMs has greatly changed the lives of modern men and women.
The introduction of ATM service has come to change the entire gamut of the way banking and financial services are operated in the world. ATMs are known for their speed and convenience giving 24 hours access to bank customers to operate their bank account in the physical environment with the help of machines. ATMs have given an edge to the banks and financial institutions in efficiently carrying out their operations. ATMs provide the advantage of access to customers account anytime anywhere. Role of ATM The ATMs are equipped to handle many other operations besides cash dispensation.
They are emerging as a substitute for bank branches helping in depositing money or cheques or drafts for collection, making investment in mutual funds, repaying credit card bills and booking on-line railway tickets and the like. As per a recent announcement, customers can use any ATM service provided by any bank at free of cost up to 5 transactions in a month. Concept of ATM Electronic equipment that allows card holding customers to perform routine banking transactions without interacting with human teller is called an “Automatic Teller Machine” and it is also called “Cash Machine”.
It offers a range of services of modern banking. The machine is used to render certain essential banking functions such as depositing cash, withdrawals, account balance verification, etc. , with the help of a Personal Identification Number (PIN) system. * Anywhere banking Automated Teller Machine can be installed at any place where public congregate in large numbers for transacting business or availing services. For example, ATMs can be installed near railway stations, bus stops etc. * Anytime banking Automatic Teller Machines offer round the clock banking services to customers.
This comes as boon to those who can’t access banking services on normal working hours due to their nature of work. The benefits are innumerable where the banker is part of the common sharing facility called “shared ATM”. * Anything banking Automatic Teller Machines offers amazing range of banking services such as cash withdrawal, balance enquiry, deposits, funds, transfer, etc. at the convenience of customers. * Safety From the technical perspective, an ATM is simply a safe with an Electro-mechanical input and output system which is itself controlled by a (usually) fully electronic user interface. * ATMs security
The overriding objective of operating an ATM is that it should provide for dispensing the required functions to the bonafide and authorized user. The mechanism should therefore prevent an unauthorized user of the card from gaining access to the machine functions. ATM Types ATMs are broadly classified into two categories. They are briefly explained below: * LOBBY ATMs Lobby ATMs These are the ATMs that are installed in branch lobbies of the concerned banks. * Through the wall ATMs These are the ATMs that are installed in wide range of locations spread over the country and sometimes overseas too.
They are located not only in bank branches but also in shopping malls, departmental stores and supermarkets. “Kiosk-Type” mini branches are frequented by more and more people. They are found in places ranging from railway stations to shopping malls, airports and even on board ship, with the link between the ATM and the host computer being maintained by radio telephone. Procedure of cash withdrawalPROCEDURE OF CASH WITHDRAWAL The cash withdrawal through ATMs has a procedure. Every card holder will be sent a secret PIN through a letter by the credit card company.
The PIN is given in the form of a posted letter which the customer has to peel off to find out his PIN. Without the use of PIN, cash withdrawal is impossible. The following procedures have to be adopted for cash withdrawal through ATMs: * The card holder has to choose a particular ATM as different companies have set up their own ATMs. For example, SBI has certain ATM centres in which only SBI credit card can be used. * After selecting the ATM, the card holder will approach the machine or await his/her turn which is kept in a closed endorser. First he/she will insert his/her card through the slit in the machine upon which the computer screen will display his/her card number and name. * He/she has to choose the language either English or the local language for appropriate key in the machine. * He/she will then enter the PIN through the panel on the machine. * The machine will ask for the amount to be withdrawn. * He/she will then enter the amount to be withdrawn which should be within the limit prescribed in the card. * Cash will then flow from the machine through a particular opening. After checking the amount, the card holder will press the key to indicate the close of the transaction. * The machine will reject the credit card and the pointed voucher will display date, time, card number and the amount withdrawn. Thus, ATMs are very useful to card holders especially for withdrawing cash during times of emergency. ATM PINATM PIN The most modern ATM card is made up of plastic with a magnetic stripe or a plastic Smart Card with a chip. Customer has a special card number that is referred to as a PIN usually of four or more digits. The customer has to insert the card in the machine and quote his or her PIN number.
The user must keep the PIN secret and the bank’s staff has no knowledge of it. Upon successful entry of the PIN, the customer may perform a transaction. After the completion of the transaction, a transaction record is printed, usually starting the action taken, date and time, location, and available balance. On completion of the transaction, the customer’s card is ejected. However, if the PIN number is entered incorrectly and that too several times, then usually after the third attempt most ATMs retain the card as a security precaution to prevent an unauthorized user from discovering the PIN by guesswork.
To prevent this from happening, the plastic cards and the PIN relating to them are posted separately to a customer. Accordingly, the plastic card is posted to a customer first and then the PIN posted a few days later, usually after obtaining acknowledgement from the customer. In order to ensure safe use of the ATM facility, it is imperative that the secret code, the PIN, is not revealed to anyone at anytime. This way, the security hazard involved in the use of the ATM card can be prevented and so called “Phantom withdrawals” made at the ATM can be curbed.
Another common problem associated with the use of ATM card is that the customer may forget the PIN and to overcome this malady, customer may choose a PIN that suggests something about an important event such as birthday etc. The PIN must always be remembered and not written anywhere. Function of ATMsFfffffFUNCTIONS OF ATM It can perform both cash/non-cash transactions in a totally secured environment. * Cash transactions include * Deposits * Withdrawals * Non-Cash transactions include * Mini statement of last five transactions. * Some banks provide up to ten transactions. * Balance enquiry. Stop payment transaction. * Request for cheque book/drafts. * Bill payment. * Other Functions * Dispensing traveler’s cheque. * Issue of Railway/Air Tickets. BiometricsBdffBIOMETRICS Biometrics constitutes a kind of an authorization system used in order to identify the genuine user of a transaction in an electronic banking environment. Like in the traditional methods of banking, with the advent of biometric solutions for the ATMs, there is no need to remember the PIN number. A variety of biometrics is used for identification of the true user. They include digitized finger prints, face prints, retina prints, etc.
However, the biggest problem with this type of mechanism is that it is expensive. Recently financial software and systems, a Chennai based firm, launched its biometric ATM interface solution (BIAS) which enables connectively of ATMs with biometric support to electronic financial transaction switches. Most banks are using finger prints as identification mode which is likely to offer voice identification options in the near future. The following are some of the benefits: * Provide strong authentication. * Can be used instead of a PIN. * Ideal for Indian rural masses. * They are accurate. Hidden cost of ATM card management. * Flexible account access allows clients to use their accounts at their convenience. * Low operational costs of the ATMs will ultimately reduce the (TCO) total cost of ownership. Benefits To customers * Convenience to do his transactions whenever and wherever he likes. * Consistency of service. * Variety of service at point. * Privacy in transactions. * Free from errors. * Flexibility in withdrawals. * Security of transaction due to use of PIN. * 24 hours, 365 days service. To Banks * Increased market penetration. Improved customer satisfaction. * Substitutes branch banking. SWADHAN India’s first shared Payment Network Service is offering country wide access to the banking operations at more than 800 ATMs in and around 64 cities. It has 40 members’ banks in the network, which includes nationalized, private and foreign banks. SWADHAN provides convenient banking, 24 hours a day and 7 days a week through Automated Teller Machine to the participating bank’s customers across the country. It offers service beyond cash withdrawal, like utility bill payment, fund transfer and deposits. ATM Cards
There are two types of ATM cards used to access the shared network system. They are described below: * Bank card This is the ATM card issued by the specific bank. There will be two logos on the card. The first logo will be the card issuing bank and other one is logo of the network. * SWADHAN Card SWADHAN card issued by network system has the two logos that appear on the card, the first one is that of the logo of the network system and the other is issuing bank. This is a “generic network card” used by all the financial institutions that are members of one network. Strategic Importance of ATM
Smaller banks need to reorient their business strategies to counter the growing competition from bigger banks. ATM is self-service banking. Besides widening the presence of banks, ATMs reduce the pressure of manpower needs. Installation of ATMs, especially those located off-site, is the beginning of branchless banking. Initially these gadgets, housed in small kiosks, were used as cash dispensing machine, accessible for 24 hours throughout the year. The cost of ATM installation and maintenance being very high, banks were investing in them slowly. In future, banks ATM would function like a kiosk delivery more f non-cash transactions, thereby reducing fixed and operating cost. The new generation banks copied them and started installing more ATMs to publish and modernize than opening branches. A majority of their ATMs are on off-site location. An attempt has made to analyze the ATMs and their role in new generation banks, private sector banks and nationalized banks. Similarly, banks too on their part might introduce specialized machines in order to carry various basic and additional functions satisfactorily. This would also help to reduce the queue for the ATMs and this would ultimately maximize the customer satisfaction.
Shared ATMs Where more than one banker shares the benefits of an ATM, it takes the form of “Shared ATM”. These are networked ATMs in regional, national and international banking services. Shared ATMs are a boost to smaller banks who can’t afford setting up separate ATMs which will help to minimize the cost of operation relating to the electronic banking and financial services. This aims at creating one or two national networks in smaller countries instead of regional ATM networks in large countries. Shared ATMs can also be achieved through merger of ATM networks.
There is a more radical approach which embraces shared ATMs, EFT, point of sale and other payment system, employing a “Smart Card” to originate a transaction with a digital signature. ATM at home Home automatic teller machines have been designed and are available for installation at homes of the Personal Computer (PC) users. A banking ATM at home is not a big sized machine as installed in banks. This is a software that provides ATM services from the user’s computer. It has features similar to the machine kept by banks as ATM. Thus, makers are providing home ATM, home pay system and turning the PC into an ATM.
With the help of the ATM, users can get electronic account statement, pay bill, transfer fund and apply for loans. It permits users to withdraw cash from the bank account instantly by remaining at home or in office. The user gets the benefit of electronic bill payments. International ATM International ATMs greatly facilitate and ease travel plans of the people by making possible for a travelling customer to withdraw funds in dozens of countries in local currency. Thus, international ATM sharing has made a significant contribution towards mobility around the world.
ATM has made funds withdrawal possible internationally. Traditionally, travelers around the world used to carry travelers cheques obtained from their banks by making payments of money in their currencies. Travelers’ cheques have always been among the more unsatisfactory financial instruments. Obtaining travelers cheques requires payment of commission charge to buy them. Moreover, they are not safe as anyone can forget the signature and obtain payment. Since, it is not required for customer to show the passport, international ATM sharing does away with all the horrors of travelers’ cheques.
For instance, as compared to the greater horror of taking foreign currency abroad or taking one’s own currency abroad with an idea of exchanging it, or losing the money while on travel, the advantage offered by the ATM is simply excellent. International cash machine sharing is simple, easy and ultra-secure as there is no need to carry any cash and the money can be withdrawn whenever needed. ATM in future ATMs and cash dispensers using Biometrics are slowly but steadily being deployed throughout USA. Biometrics is mainly concerned with using something for identification of the user that which can’t be lost or stolen or forgotten.
Biometrics can be used in various ways to identify the user. Behavioural -> which identifies user’s voice and signature. Physiological -> which identifies finger print, Iris, face and hand of the user. Retain scanning -> wherein the eye winking of the user is identified with the help of the laser beam. In the days to come, ATMs would be named as ACMs- Automated Cashier Machines. Profile of the Institutions Issuing ATM Cards State bank of India ATM cards State bank of India (SBI) is India’s first largest commercial bank.
The origin of State Bank of India dates back to 1806 when the Bank of Calcutta (later called Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India came into existence by an Act in the parliament as successor to the Imperial Bank of India. SBI bank has a network of about 11448 branches and extension customer and over 9000 ATMs.
The first thing that customers would have to do is to contact the branch (provided it is linked to the ATM network) and apply for an ATM card. After the customers submit their applications within 7 working days, customer would receive their ATM cards at the address mentioned in the application form. Thereafter the customer should call on the branch to collect their PIN mailer. Customers can now use the ATM card. Now, the ATM is connected to the network. Customer can change the PIN at the ATM itself. Normally customers do so at the first opportunity. It is also important that customers do not disclose the PIN anywhere. Customer Name Customers name should appear correctly. If not, customers are advised to get a new card with the correct name. SBI ATM cards have 19 digit customer individual number. The date of validity is given in the ATM cards. It is valid till the date that is mentioned in customer’s card. SBI ATM card is “Not Transferrable”. * SBI cash authorized signature This ATM card is the property of State Bank of India and its uses is governed by the terms and conditions of the bank. It must be returned to the bank on request. It also contains, * The magnetic stripe, which contains encoded information. The signature panel on which customers must sign as soon as they receive the customer card. This identifies the card as customers SBI ATM and prevents misuse by any other person. * Caring for customers SBI ATM cards The blank magnetic stripe on the back of customers SBI ATM card contains important information about customers’ card. ATM card should not be kept in places such as on the top of TV set or near any electronic appliances. The following are some of the instructions, * Avoid scratching the magnetic stripe. * Do not place two cards with magnetic stripe together. * Do not bend the card. Keep customer card away from heat and direct sunlight. These simple precautions will help to protect the important information stored on the magnetic stripe and ensure that customers do not face any problem in using customer cards. Various options * Fast cash This option allows customers to withdraw sums of Rs. 1000, Rs. 2000, Rs. 3000 and Rs. 5000 subject to availability of balance in customer account. * Withdrawal Customer can choose the account to which the withdrawal is to be debited. Then the customers’ withdrawal can be in multiples of Rs. 100. The customer can withdraw up to Rs. 5000 per day from customer account. State -of – the –art –technology In this ATM drive, SBI has pioneered the large scale deployment of State – of – the – Art Touch screen multi-functional ATMs. The bank had also gone in for innovative dip card technology for greater security and convenience to customers. VSAT Infrastructure Connectivity for SBI’s ATM is provided by a network of over 800 VSATs, which have been installed at various ATM locations and branches. Today SBI has spread its arms around the world and has a network of branches working all the 24 hours a day and all the 7 days in a week.
SBI’s International Banking group delivers the full range of cross – border finance solution through its four wings – the Domestic division, the foreign office division, the foreign department and the International service division. Latest development of SBI ATM cards From 1st April 2009, the customers were given free access to ATMs of all banks for cash withdrawal and balance enquiry. RBI and Indian bank association decided to modify this facility. Accordingly, with effect from 15th October 2009, a customer of some other bank using an ATM of SBI can withdraw a maximum Rs. 0000 per withdrawal. From 15th October 2009, a customer of SBI using ATMs of other banks will have to bear the service charges from the 6th withdrawal of the month onwards and 5 free cash transactions per month is allowed in other bank ATMs for State bank customer. General guidelines/safety tips of SBI ATM cards holders * The customer should read carefully the enclosed user’s manual and instructions on the PIN mailer. * He should sign at the back of his card as soon as he receives it. * He should use his new card on an ATM and immediately change the system generated PIN. He should change his PIN to a new four digit number of his choice, memorize it and destroy the PIN mailer. It is preferable for him to change it every quarter. * He should never use a PIN that could be easily guessed eg. His birthday or telephone number. * He should not write his PIN on the card or anywhere else. * He should keep the Personal Identification Number (PIN) secret and not disclose the PIN to anybody including a family member or his banker. * In case the PIN is divulged, he should change his PIN immediately at any State bank group ATM. He should never let anyone see him enter his PIN. * He should not allow any other person to enter the ATM room. * He should keep a separate note of his card number and associated account number. These particulars will be necessary for blocking the card in case of loss of the card. ICICI bank ATM cards ICICI bank is India’s second largest bank. ICICI bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution and was its wholly owned subsidiary. ICICI was formed in 1955 on the initiative of the World Bank, the Government of India and representatives of Indian industry.
The objective was to create a development in financial institution for providing medium term and long term project for financing Indian businesses. ICICI bank 24 hours ATM network is one of the largest and most widespread ATMs in areas like residential localities, major petrol bunks, airports, near railway stations etc. which are conveniently accessible to those banks customers. ICICI bank ATM has features of user – friendly graphic screens with easy to follow instructions. The bank has introduced ATMs, which interact with customers in their local language for increased convenience.
ICICI bank has a network of about 1520 branches and extension customers and over 4721 ATMs. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. Following are the features available on ICICI ATMs which can be accessed from anywhere at any time: * Cash withdrawal The customer can withdraw up to Rs. 25000 per day from his account.
Fast cash option provides the facility of withdrawing prefixed amounts and ultra fast cash option allows customers to withdraw Rs. 3000 in one shot. * Balance Inquiry The customers can deposit cash and cheques, know his ledger balance and available cash balance. This facility is available at all ATM centres. Customer’s cash and cheques deposited in ATMs will be credited to his account on the same day (provided cash is deposited before the clearing) and cheques are sent for clearing on the next working day. * Funds Transfer The customers can transfer funds from one account to another linked account in the same branch. PIN Change The customers can change the Personal Identification Number of ATM or Debit card. * Payments The latest features of ICICI ATMs is that the functionality can be used for payments of bills, making donations to temples/trusts, buying internet packs, airtime recharges for prepaid mobile phones and much more. HDFC bank ATM cards HDFC bank is India’s third largest bank. HDFC (Housing Development Finance Corporation) bank is privately managed financial institution established in 1994. The bank started to operate its commercial services by 1995, aiming to facilitate the customers a complete satisfaction.
The bank apart from providing corporate and retail services for the customers across the nations, also offer HDFC ATM cards. ATM cards issued by HDFC offers easiest money transaction to the customer as well as operate multimedia of ATM centers in almost every city of the country. HDFC bank provides its products with world class service through 1725 branches spread over 771 cities across India, 4000 networked ATMs which can be accessed by all domestic and international VISA/Master Card, VISA Electron/Maestro, Plus/Cirrus and American Express credit charge cardholders.
They also offer their customers tele- banking facilities in over 120 locations. HDFC bank ATMs will need to have a Personal Identification Number (ATM PIN) for ATM access, which is issued by the issuing bank. There are no charges levied for use of other bank cards on HDFC bank ATMs for cash withdrawals and balance enquires. There is no charge for using the card at HDFC bank ATM. HDFC bank introduced “Valid up to 01/10” that means the first two numbers indicates the month and the next two indicate the year till which your card is valid. Here it implies that the ATM/Debit card is valid up to January 2010.
HDFC bank’s 24 hours ATM network is one of the largest and most widespread ATM in areas like residential localities, major petrol bunks, airports, near railway stations etc. which are conveniently accessible to those banks customers. Following are the features available on HDFC ATM cards: * 24-hrs access to cash The customer of HDFC can withdraw up to Rs. 10000 per day on his ATM card and up to Rs. 15000 on his debit card. * View account balances and obtain mini statement The customer can get details of the last 9 transactions on his account with the mini statement, along with his account balance. Change ATM PIN He can change his ATM PIN at any given point of time. * Deposit cash or Cheque He can deposit cash or cheque into his account without visiting the branch. * Transfer funds between accounts He can transfer money between his accounts. Both his accounts must be linked to his ATM/Debit card. AXIS bank ATM cards AXIS bank is India’s fourth largest bank. The AXIS bank was the first of the new private banks to have begun operation in 1994, after the Government of India allowed new private banks to be established.
AXIS bank was jointly promoted by the Administrator of the specified undertaking of the Unit Trust of India (UTI). AXIS bank is well-known for its strength in both retail and corporate banking and its commitment towards adopting the best industry practices internationally in order to achieve excellence. Presently, the bank has a very wide network of more than 835 branch offices and extension counters. The bank has a network of over 3595 ATMs providing 24 hours a day banking convenience to its customers. This is one of the largest ATM networks in the country.
The usage of AXIS bank ATM card called the TRUST 24 CARD issued to special categories of customers will be in accordance with the rules and regulations concerning the TRUST 24 CARD. AXIS bank ATM card will be activated for payment transaction at merchant outlets, within 24 hours of the customer’s first cash withdrawal transaction at any AXIS bank ATM or VISA ATM. AXIS bank ATM card has the following features: * Withdrawal The daily ATM cash withdrawal limit has been enhanced to Rs. 50000 per day at all AXIS bank ATMs. * Balance inquiry
The customer can check available balance, with the option of printing a receipt as well. * Mini statement The customer can check the last 7 transactions carried out on his card. * Pre-paid mobile recharge He can recharge his pre-paid mobile at anytime of the day or night using his ATM card. * Lost/Stolen The customer should contact the card issuing bank immediately on noticing the loss of his ATM card so as to enable the bank to block such cards. CANARA bank ATM cards Canara bank was founded in 1906 by late Sri. Ammembal Subba Rao Pai.
The bank was initially named as “Canara bank Hindu Permanent Fund”. It blossomed into a limited company in 1910 and was renamed as “Canara bank Ltd”. In 1969, the bank was nationalized and thereafter came to be known as Canara Bank. Canara bank has carved a niche for itself in providing IT-based services. With 100 per cent computerization of the branches, the bank provides a wide array of services such as networked ATMs, Anywhere banking, Tele banking, Remote access terminal internet and mobile banking, debit card etc.
Canara Bank has a network of about 2690 branches and extension customer and over 2506 ATMs. Canara bank is situated all over India. This bank occupies an advantageous position and is easily accessible to customers through ATMs. Canara bank ATM cum debit card is a substitute for cash and cheque book. This debit card is valid for use in India and Nepal only. This card is valid for a period of 5 years, valid from the date of issue till the last day of the month of expiry on receipt of the card. The customer has to, Verify whether his name is printed correctly on the face of the card. If not, the matter should be taken up with the branch of issue. * Sign across signature panel at the bank of his card, to prevent misuse of the card, collect the PIN mailer from the branch and ensure that the PIN number is not tempered. If any signs of tempering are found, the customer should immediately surrender the card and PIN to the branch of issue. This card is affiliated to VISA Electron and accepted at well over 50000 merchant establishments displaying VISA logo.
The merchant should have an electronic (point of sale) swipe terminal. This card can’t be used for mail order/Telephone order/Internet transaction. ATM cum debit card is accepted not only at Canara bank ATMs but also over 6000 ATMs of other banks with VISA/VISA electronic logo in India. For withdrawing cash, the customer should present his Canara bank debit card at the branch “authorized for cash dispensation through EDC (Electronic Data Capture) machine” and indicate the amount he wishes to withdraw (within the per day limit through EDC machines indicated). EDC” or “Electronic Data Capture” refers to Electronic point of sale swipe terminals, whether developed by or on behalf of bank or any other bank at which, amongst other things, the card holder can use his accounts held with the bank to process the transaction at the merchant establishment. If the card is lost or stolen, the cardholders shall immediately notify the branch (which has issued the card)/nearest branch/switch room with full details, including the card holder name, the card number and its validity period as imprinted on the card.
If the information is given orally, it must be confirmed in writing within 7 days. In case of suspected theft of the card, the cardholder has to lodge a report with the local police and has to send a copy there of to the issuing bank. A fee of Rs. 150 per card or such other amount as may be fixed by the bank from time to time shall be charged from the cardholder for placing the lost/ stolen card in the hot list. This fee has to be paid compulsorily whether the lost / stolen card is to be replaced or not. Analysis and Interpretation
Analysis refers to computation of certain measures along with searching for pattern of relationship that exist among data groups. The present chapter highlights the analysis of primary data and its findings drawn from the tabulation of the data. ATM card holders were of various categories. The card holders differ with reference to their age, occupation, income level and the like. Further, the reasons for having ATM cards may also differ with reference to various factors. Some respondents may have SBI cards and some may have Axis bank cards. Certain respondents may have ICICI cards (or) HDFC cards and some may have Canara Bank cards.
The socio economic status of the sample respondents are presented in the first instance which is followed by analysis of use of the ATM cards by respondents on various factors such as period of holding, influence for purchase, reasons for choice, operating hours and socio-economic status of sample respondents. TABLE NO: 4. 1 AGE – WISE CLASSIFICATION S. NO. | AGE| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. | 18-2021-3031-40Above 40| 12542039| 9. 643. 21631. 2| TOTAL| 125| 100| Source: Primary Data Table No. 1 shows the age-wise classification of the respondents. 43. 20 Per cent of the respondents were in the age group 21-30 years. 1. 2 per cent of the respondents were in the age category 40 years and above. 16 per cent of the respondents were in the age group 31-40 years. 9. 6 per cent of the respondents were in the age category 18-20 years. The maximum number of respondents was in the age group 21-30 years. This shows that in these modern days, even youngsters are using ATM cards. TABLE 4. 2 SEX WISE CLASSIFICATION S. NO. | SEX| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. | FemaleMale| 5669| 44. 855. 2| TOTAL| 125| 100| Source: Primary Data Table No. 4. 2 shows the sex-wise classification of respondents. 55. per cent of the respondents were males. 44. 8 per cent of the respondents were females. More than 50 per cent of the respondents were males. From the study, it can be concluded that more of male respondents use the ATM cards than the female respondents. TABLE 4. 3 OCCUPATION WISE CLASSIFICATION S. NO. | OCCUPATION| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. | EmployeeBusinessStudent| 692729| 55. 221. 623. 2| TOTAL| 125| 100| Source: Primary Data Table No. 4. 3 shows the occupation–wise classification of respondents. 55. 2 per cent of the respondents were employees. 23. 2 per cent of the respondents were students. 1. 6 per cent of the respondents were business people. TABLE 4. 4 INCOME BASED CLASSIFICATION S. NO. | INCOME| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. 5. | Nilup to Rs. 5000Rs. 5000-Rs. 10000Rs. 10000-Rs. 15000Above Rs. 15000| 1531174022| 1224. 813. 63217. 6| TOTAL| 125| 100| Source: Primary Data Table No. 4. 4 shows the income based classification of respondents. 32 per cent of the respondents were in the income category Rs. 10000-Rs. 15000. 24. 8 per cent of the respondents were having an income up to Rs. 5000. 17. 6 per cent of the respondents were having an income above Rs. 5000. 13. 6 per cent of the respondents were in the income category Rs. 5000-Rs. 10000. 12 per cent of the respondents had no income as they were students. This shows most of the respondents were in the income category below Rs. 5000. TABLE 4. 5 TYPE OF CARD USED BY ATM CARD HOLDERS S. NO. | PARTICULARS| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. | ATM cum debit cardCredit cardBoth| 683126| 54. 424. 820. 8| TOTAL| 125| 100| Source: Primary Data Table No. 4. 5 shows the type of the card used by the ATM card holders. 54. 4 per cent of the respondents were using ATM cum debit card. 24. per cent of the respondents were using credit cards. 20. 8 per cent of the respondents were using both debit card and credit card. More than 50 per cent of the respondents were using only ATM cum debit card. TABLE 4. 6 FREQUENCY OF OPERATING ATM S. NO. | OPERATING FREQUENCY| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. | WeeklyFortnightlyDailyOn requirement| 26291654| 20. 823. 212. 843. 2| TOTAL| 125| 100| Source: Primary Data Table No. 4. 6 shows the frequency of operating ATM. 43. 2 per cent of the respondents used the ATM on requirement. 23. 2 per cent of respondents used ATMs fortnightly. 20. per cent of the respondents used the ATMs weekly. 12. 8 per cent of the respondents used the ATMs daily. From this, it can be interpreted that more than 50 per cent of the respondents operated the ATMs on requirement. TABLE 4. 7 NUMBER OF WITHDRAWALS PER MONTH S. NO. | DURATION| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. | 2 times3 timesMore than 3 times| 424835| 33. 638. 428| TOTAL| 125| 100| Source: Primary Data Table No. 4. 7 shows the number of withdrawals made per month. 38. 4 per cent of the respondents withdrew money 3 times per month. 33. 6 per cent of the respondents withdrew money 2 times per month. 8 per cent of the respondents withdrew money more than 3 times per month. From this study, it can inferred that out of 125 respondents, 48 respondents withdrew money 3 times per month. TABLE 4. 8 KNOWLEDGE OF ATM CARDS BY RESPONDENTS S. NO. | RESPONDENTS| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. 5. | BankersAgentsFriendsRelativesSelf| 2312281646| 18. 49. 622. 412. 836. 8| TOTAL| 125| 100| Source: Primary Data Table No. 4. 8 shows the how the respondents came to know about ATM cards. 36. 8 per cent of the respondents got ATM card out of self interest. 22. 4 per cent of the respondents came to know about it through their friends. 8. 4 per cent of the respondents got to know about ATM card through bankers. 12. 8 per cent of the respondents knew it through the relatives. 9. 6 per cent of the respondents came to know about ATM cards through agents. From this study, it can be inferred that many of the respondents got ATM cards out of self interest. TABLE 4. 9 ACCESSING TIME OF ATM S. NO. | ACCESSING TIME| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. 5. | 6 a. m. to 10 a. m. 10 a. m. to 2 p. m. 2 p. m. to 6 p. m. 6 p. m. to 10 p. m. Anytime| 1431201743| 11. 224. 81613. 634. 4| TOTAL| 125| 100| Source: Primary Data Table No. hows the accessing time of ATM. 34. 4 per cent of the respondents used their ATMs at anytime. 24. 8 per cent of the respondents used ATMs between 10 a. m. to 2 p. m. 16 per cent of the respondents used ATMs between 2 p. m. to 6 p. m. 13. 6 per cent of the respondents used ATMs between 6 p. m. to 10 p. m. 11. 2 per cent of the respondents used ATMs between 6 a. m. to 10 a. m. TABLE 4. 10 REASON FOR SELECTING ATM CARD S. NO. | REASON| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. 5. | SafetyConvenienceAnytime moneyAnywhere moneyAll the above| 2811261743| 22. 48. 820. 813. 634. 4| TOTAL| 125| 100| Source: Primary Data
Table No. 4. 10 shows the reasons for selecting ATM card. 34. 4 per cent of the respondents selected ATMs for all of its features. 22. 4 per cent of the respondents selected ATM cards for safety. 20. 8 per cent of the respondents selected ATM cards for anytime money. 13. 6 per cent of the respondents selected ATM cards for anywhere money. 8. 8 per cent of the respondents selected ATM cards for convenience. 43 respondents use ATM cards for all the features. TABLE 4. 11 MODE OF DEPOSITING MONEY THROUGH ATMs S. NO. | RESPONDENTS OPINION| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. | YesNo| —-125| —-100| TOTAL| 125| 100|
Source: Primary Data Table No. 4. 11 shows that no respondent deposits money through ATMs. TABLE 4. 12 PROBLEM OF STANDING IN QUEUE S. NO. | STANDING IN QUEUE| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. | Yes No| 7352| 58. 441. 6| TOTAL| 125| 100| Source: Primary Data Table No. 4. 12 shows the problem of standing in queue in front of the ATMs. 58. 4 per cent of the respondents faced the problem while 41. 6 per cent of respondents did not face the problem of standing in queue. More than 50 per cent of the respondents faced the problem of standing in queues. TABLE 4. 13 RANKING OF PROBLEMS FACED S. NO. | PROBLEM FACED| NO.
OF RESPONDENTS| PERCENTAGE| 1. 2. 3. | Restricted withdrawalFault in MachineCharging commission| 415232| 32. 8 41. 6 25. 6 | TOTAL| 125| 100| Source: Primary Data Table No. 4. 13 shows the ranking of problems faced by the respondents while using ATMs. 41. 6 per cent of the respondents faced the problem of fault in ATM machine. 32. 8 per cent of the respondents faced the problem of restricted withdrawals. 25. 6 per cent of the respondents felt that charging commission for using ATMs was the major problem faced by them. Most of the respondents were of the opinion that fault in ATM machine was the major problem. TABLE 4. 4 MODE OF MONEY TRANSACTION S. NO. | TRANSACTION| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. | ATMBank| 5669| 44. 855. 2| TOTAL| 125| 100| Source: Primary Data Table No. 4. 14 shows the respondent’s mode of transacting with the banks. 55. 2 per cent of the respondents chose banks for money transactions. 44. 8 per cent of the respondents chose ATMs for money transactions. Most of the respondents chose banks for money transactions. TABLE 4. 15 WAITING TIME FOR ATM SERVICE S. NO. | WAITING TIME| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. | Less than 2 mins2 mins to 3 mins3 mins to 4 minsMore than 4 mins| 28324421| 22. 425. 35. 216. 8| TOTAL| 125| 100| Source: Primary Data Table No. 4. 15 shows the waiting time for ATM service. 35. 2 per cent of the respondents waited for 3 mins to 4 mins. 25. 6 per cent of the respondents waited for 2 mins to 3 mins. 22. 4 per cent of the respondents waited for less than 2 mins. 16. 8 per cent of the respondents waited for more than 4 mins. Most of the respondents waited for 3 mins to 4 mins. TABLE 4. 16 NORMAL ACCESS AREA OF ATM S. NO. | ACCESSING AREA| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. | Nearest to the house Nearest to the working placeShopping mallOther places| 4238 1926| 33. 30. 4 15. 220. 8| TOTAL| 125| 100| Source: Primary Data The table No. 4. 16 shows the normal access area of ATMs. 33. 6 per cent of the respondents were using the ATMs which are proximate to the house. 30. 4 per cent of the respondents were using ATMs which are nearer to the working place. 20. 8 per cent of the respondents were using ATMs at other places. 15. 2 per cent of the respondents were using ATMs at shopping mall. Most of the respondents used ATMs which were nearer to their house. TABLE 4. 17 REASONS FOR SELECTING ATMs S. NO. | REASON| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. Time savingSecrecy & safetyBoth| 454337| 3634. 429. 6| TOTAL| 125| 100| Source: Primary Data Table No. 4. 17 shows the reasons for selecting ATM service. 36 per cent of the respondents selected ATMs for time saving. 34. 4 per cent of the respondents selected ATMs for secrecy and safety. 29. 6 per cent of the respondents selected ATMs both for time saving and secrecy and safety. Hence, 34. 4 per cent of the respondents selected ATMs for secrecy and safety. TABLE 4. 18 AMOUNT OF WITHDRAWAL PER DAY S. NO. | AMOUNT| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. 4. | Rs. 100 – Rs. 500Rs. 500 – Rs. 000Rs. 1000 – Rs. 2500Above Rs. 2500| 55322216| 4425. 617. 612. 8| TOTAL| 125| 100| Source: Primary Data Table No. 4. 18 shows the amount of withdrawal per day. 44 per cent of the respondents withdrew Rs. 100-Rs. 500 per day. 25. 6 per cent of the respondents withdrew Rs. 500-Rs. 1000 per day. 17. 6 per cent of the respondents withdrew Rs. 1000-Rs. 2500 per day. 12. 8 per cent of the respondents withdrew above Rs. 2500 per day. Most of the respondents withdrew Rs. 500-Rs. 1000 per day. TABLE 4. 19 RESPONDENTS’ OPINION ABOUT WHETHER ATM LOCATION FREE FROM ROBBERY S. NO. | ROBBERYAGE| NO.
OF RESPONDENTS| PERCENTAGE| 1. 2. | YesNo| 7352| 58. 441. 6| TOTAL| 125| 100| Source: Primary Data Table No. 4. 19 gives details about the respondents’ opinion regarding whether ATM location free from robbery or not. 58. 4 per cent of the respondents felt ATM locations were free from robbery. 41. 6 per cent of the respondents felt this problem at the time of withdrawal. TABLE 4. 20 LEVEL OF SATISFACTION REGARDING ATMs S. NO. | SATISFACTION LEVEL| NO. OF RESPONDENTS| PERCENTAGE| 1. 2. 3. | Very much satisfiedSatisfiedNot satisfied| 3788—-| 29. 670. 4—-| TOTAL| 125| 100| Source: Primary Data Table No. 4. 0 shows the satisfactory level of the respondents regarding ATMs. 70. 4 per cent of the respondents were satisfied. 29. 6 per cent of the respondents were very much satisfied. None of the respondents were dissatisfied. Most of the respondents were satisfied with the ATM services. Findings, Suggestions and Conclusions ATMs have become the order of the day in banking. They are user friendly and they have mass acceptability. They can effectively reach out a large customer base at low cost. At present, banks have started out-sourcing and sharing of ATM services to reduce cost. Most banks are networking the ATMs.
A network of connected ATMs of various banks has resulted in the improvement of customers’ service. ATMs are used to cross-sell other products also so as to meet the varied requirement of customers. Banks have started dispensing railway tickets, airway tickets, movie tickets etc. through ATMs. Voice activated ATMs and ATMs with finger print scanning technology are on the move. If they become operative, they can relieve the customers from the hassle of carrying a card. In future, a bank ATM would function like a kiosk delivering more of non-cash transactions, thereby reducing fixed and operating cost. Findings 43. 2 per cent of the respondents were in the age group 21-30 years. * 55. 2 per cent of the respondents were males. * 55. 2 per cent of the respondents were employees. * 32 per cent of the respondents were in the income category Rs. 10000-Rs. 15000. * 54. 4 per cent of the respondents were using ATM cum debit card. * 43. 2 per cent of the respondents used the ATM on requirement. * 38. 4 per cent of the respondents withdrew money 3 times per month. * 36. 8 per cent of the respondents got ATM card out of self interest. * 34. 4 per cent of the respondents used their ATMs at anytime. * 34. per cent of the respondents selected ATMs for all of its features. * 100 per cent of respondents’ opine that the amount was not deposited through ATM card. * 58. 4 per cent of the respondents faced the problem of standing in the queue. * 41. 6 per cent of the respondents faced the problem of fault in ATM machine. * 55. 2 per cent of the respondents chose banks for money transactions. * 35. 2 per cent of the respondents waited for 3 mins to 4 mins. * 33. 6 per cent of the respondents were using the ATMs which are proximate to the house. * 36 per cent of respondents selected ATM service, the reason behind was time saving. 44 per cent of the respondents withdrew Rs. 100-Rs. 500 per day. * 58. 4 per cent of the respondents felt ATM locations were free from robbery. * 70. 4 per cent of respondents were satisfied with the ATM service. Suggestions * Financing institutions may approach the person in the lower income group and explain the advantages of ATM cards so that the strain in personal banking is minimized. * Use of Indian financial network by banks may be improved and the banks may be asked to provide ATM services to all customers who require this facility. Banks might approach students community through awareness campaign so that for those whose stay in hostel it provides an easy and quicker means of getting money from the parents for payment of tuition fee, hostel fee, etc. * In order to reach the illiterate people better voice guidance on ‘how to operate ATM’ may be provided. * ATMs should to ensure privacy and safety. * The minimum / average balance required to be maintained by every bank for availing ATM facility should be decreased to a nominal amount. Secured mode of depositing money through ATMs should be made available to ATM card holders. * Improvement can be made with the facility in payment through ATM like Railway reservation, house tax, telephone charges, electricity charges and the like. Conclusion To conclude, the customer satisfaction of ATM in Trichy are adequate. The present day banking activities are undergoing major changes due to changes in internet technology and intranet technology. Government banks and financial institutions should come together for providing more services to customers.
The points relating to safety, security, convenience, easy access and reliability are to be taken into access by Reserve bank of India. Reserve bank takes effective steps to develop the ATM facility. This will help to give excellent banking facilities to millions of customers in future. The debit card is used only as a substitute for ATM. Customers should be educated the benefits of their services. This would help the bank in the long run which would assure excellent service to the masses in this new millennium in tune with the global changes and challenges.