Atm INTRODUCTION The traditional function of banking to accept deposits and to make loans and advances.

Banking is an industry which is service oriented. The peculiarity of the is industry is that it has to implement various social objectives as well as commercial objectives. It is an instrument for the development of the economy of the country. Banks have two roles to play. It creates a runway for the free flow of capital necessary for the growth of the economy. At the same time it must attend to lending and deposit mobilization in order to make profit for its survival and growth. But banking as it is now is not a high profit service industry in most countries. In many countries including India, Banks are affected by loan loses and this has a great impact on the health of the banks. This has resulted in the poor quality of services. Customers complaints are many. They are follows: Long delay in handling transaction Long waits at the counters Delay in updating of pass book Late supply of statement of account Lack of communication between customer and bank Lack of efficiency of the bank employee Lack of commitment by the banks. All these factors have pushed the customer to refrain from traditional banking activities people want better services. Time is an important factor for all of us. People dont want to waste their precious time even while banking. A businessman or an industrial entrepreneur cannot waste his time in the corridors of a bank to take his own money he has deposited already. When banks adopt E- banking. E- BANKING Electronic banking is one of the most successful online businesses. E- Banking allows customers to access their accounts and execute orders through a simple to- use website. There is no special software to install other than a web browser and many banks do not change for on online transactions versus real life banking transactions. Electronic banking saves individual and companies time and money.

Online banking puts the power of banking into the hands of the customers and allows the customers to self service themselves with all their banking needs, just as customers have become used to getting money from an ATM instead of walking up to the cash desk in the bank. With this one line services, customers can view their account details, review their accounts histories, transfer funds, order checks, pay bills, reorder checks and get in touch with the customer care development of the bank. The only transaction that currently cant be done is the withdrawals of cash, but banks are working on resolving this problem. To get started the virtual banking customer needs a computer or embedded device connected to the internet and browser. Depending on the security strategy by the on line

bank, you may need to install a plug in or enable java to increase the level of security in your browser. The plug in or java applet are used to increase the level of encryption to make sure nobody can intercept your banking transactions. Even more sophisticated systems use smart card banking more secure is used in addition to the ID and login; a list of transaction number (TAN), which are one- time password that can be used for a single transaction. Many people use PC banking software such as quicken, which are personal financial management software packages, which are not the same as electronic banking. The major differences is that with PC banking, software is loaded on to your computer and all your transactions are handled through a third party vendor, adding security issues to the Ebusiness services. Electronic banking is an online service that allows customers to perform the same banking functions as in Quicken except that they can access their accounts directly over the internet. EVOLUTION OF ELECTRONIC BANKING In its evolutionary history, a start had been made in electronic banking as early as the 1920s. But this technology or this forms of banking did not get a wide spread acceptance till the 1960s. it required almost a complete generation before this form of banking found popularity with a sizable group of consumers and bankers. The effectiveness of electronic banking system was inhibited by three main factors: 1. Communication Technology was in its infancy and inadequate for local or global coverage. 2. The most companies and banks had incompatible systems- some times even different branches of the same bank had different systems. 3. Computer manufactures were unable to agree on the development of technology standards which would permit data exchange directly between computer systems. After 1960 electronic banking and its use recorded a quantum jump. In the year 1991 this form of banking took a great leap by which home, office and telephone banking was made more effective and efficient as a means of selling and delivering products. At the same time, the rapidly rising costs of operating a physical branch network particularly in terms of staff and premises are making the traditional channel less attractive. Electronic banking in India In India electronic banking is of fairly recent origin. The traditional model for growth has been through branch banking. Only in the early 1990s has there been a start in the nonbranch banking services. The new private sector banks and the foreign banks are handicapped by the lack of a strong branch network in comparison with the public sector banks. In the absence of such networks, the market place has been the emergence of a lot of innovative services by these players through direct distribution strategies of non- delivery. All these banks are using home banking as a key factor to remove customers away from the well entrenched public sector banks. The E- banks provide the following services to customers:

EFT (electronic fund transfer):This mechanism is used to capture and process money and credit transfers between banks and business their customers. Bank customers can use their telephones as their terminals to make electronic payments of bills. EFT also faciliting large- scale bank to bank transfer. Tele banking The banking pertains to bank on telephone. New and better concepts are being developed each day for the convenience of customers and increase the productivity. In case of tele banking the bank provides its customers with a telephone number. The customer can have access to information by dialing this number and is saved from the inconvenience of going bank.

Credit card:Credit card have found wide spread acceptance in the metros and big cities. Credit cards are gaining popularity for online payments. Credit card transactions result in immediate over night payments to the merchants. This card payment can reduce the merchants requirements for financing inventory. E Cheque:It consists five primary facts. They are the consumers, the merchant, consumers bank, the merchants bank and the e- mint and clearing process. This chequering system uses the network services to issue and process payments that emulates real world chequing. The payer issues digital cheque to the payee and the entire transactions are done through internet. Electronic version of cheque are issued, received and processed. Demat accounting:In January 1998 SEBI initiated this DEMAT ACCOUNT systems to regulate and to improve stock investing. This is done through depository participants with national securities depositories ltd. (NSDL) as the co- coordinator. The investor open an account called demats account with DPS. These DPS transact business through electronic media. They get the shares in electronic form. Then they send the actual shares to the investor. The investor has to pay charges for opening of account, maintaining and for collection. Point of sale (POS):In many countries retail stores operate point of sale terminals in their premises. These terminals act as ATMs. The customer buys articles in the stores. For the payment of the bill, he uses these terminals. The customer gives the stores cashier his identification card. The cashier puts this in the terminals. In a matter of seconds the amount of purchase is transferred from the customer account to the store account.

Automatic teller machines (ATM):An ATM machine is banking terminal that accepts deposits and dispenses cash. ATMs provides quick, efficient and reliable service 24 hours a day every day of the year. This can be done by inserting the card in the ATM and entering the personal identification number and secret password. ATM machines can be installed any were like petrol banks, markets, railway station etc.

Reference 1. Guruswami. S, Banking in the New Millennium- Issues, Challenges And Strategies, Kanishka Publishers, New Delhi, 2001. 2. Daniel Amor, The E- Banking (R) Evolution, He Wlett Packard Professional Banking Development In India, Print Well Publishers, New Delhi, 1987 3. Chippa M.L Commercial Banking Development In India, Print Well Publishers, New Delhi, 1987s AUTOMATIC TELLER MACHINES (ATM) A GENERAL CONCEPT Retaining the loyalty of the customer by providing him with value added services tailored to his needs is becoming the key survival of the banks. Banks are now looking computerization in their transactions as a means to improve customer service and efficiency and that the work force should realize that mechanization would lead to growth and employment expansion. The latest opinion of experts pointing out that banks should optimally utilize the society would wide inter bank financial transactions the network to promote electronic cash culture through issue of multipurpose payment networks systems, point of sale terminals and branch machines. These all arguments led to the introduction of ATM. History of ATM The worlds first ATM, which was developed and built by Luther George Simijan and installed 1939 in New York by the city bank of New York, but reinstalled after 6 months due to the lack of customers acceptance. Thereafter, the history of ATMs paused for over 25 years, until De La Rue developed the first electronic ATM which was installed first in Enfield Town in North London on June 27 1967 by Bardays Bank. The first person to use the machine was Reg Varney of On the Buses fame, a British Television Program from the bos. This instance of the invention is credited to John Shephered Barron, although Luther George Simijian registered patents in New York, USA in the 1930s and Donald Wetzed and two other engineers from Docute registered a patent on June 4, 1973. Shephered- Barron was awarded an OBE in the 2005 New Years Honors. The first ATMs accepted only a single use token or voucher, which was retained by the machine. These worked on various principles including radiation and low- coercivity magnetism that was wiped by the card reader to make fraud more difficult. The idea of a personal identification number (PIN) stored on a physical card being compared with the PIN entered when retrieving the money was developed by the British engineer James Good fellow in 1965, who also holds international

patents regarding this technology. ATMs first came in to wide use during the early to mid 1980s Meaning Automated Teller Machine is an electronic computerized telecommunication device that allows a banks customers to directly use a secure method of communication to access their bank accounts, order or make cash withdrawal and check their account balances without the need for a human bank teller. Some ATMs allow withdrawals funded by clerical staff in retail merchant locations. The clerical staffs are not considered bank tellers. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones pre- paid accounts or even buy postage stamps. Automated Teller Machine is an unattended electronic machine in a public place, connected to a data system and related equipment and activated by a bank customers to obtain cash withdrawals and other banking services. An ATM machine is a banking terminal that accepts deposits and dispenses cash. ATMs are activated by inserting a cash or credit card that contains the users account number and PIN on a magnetic scrip. The ATM calls up the banks computers to verify the balance, dispenses the cash and then transmits a completed transaction notice. The word machine in the term ATM machine is certainly redundant banking delivery channel all over the world for many decades. It offered services fast, any time- 24 hrs a day, and 365 days in a year. The facility has been immensely popular and no retail bank could afford ignore this technology enabled channel. Usage On most modern ATMs. The customer identifies him or herself by inserting a plastic card with a magnetic stripe or plastic smart card with a chip that contains his or her account number. The customer then verifies his or her identify by entering a pass code, often referred to a PIN of four or more digits. If the number is entered incorrectly several times in a row, most ATMs will retain the card as a security precaution to prevent an authorized user from discovering the PIN by guess work ( these cards are often destroyed if the ATM owner is not the card issuing bank as non customers identities cannot be checked). In some cases the customers PIN may be changed using the machine. Facilities provided for ATM card holders The customers can withdraw a minimum of Rs. 500 and a maximum of Rs. 10000 at a time depending on the availability of balance in a transaction receipt. By balance enquiry the card holder can see the balance in the designated accounts. Cards that have been used satisfactory will be renewed and new card sent to card holders before the expiry of the ATM card. The bank has the authority to debit in the designated account of the card holders for all withdrawal or transfers effected using the card as evidenced by banks records which will be conclusive and binding on the card holders. The card holder expressly authorized the bank to debit the designated account with service charges from time to time. The transaction record generated by the ATM will be verified and corrected amount will be binding on the card holders. Deposits will be verified by two officials of the bank. Errors will be notified to the card holder by mail. Outstation cheques, drafts, dividend warrants etc. will normally be accepted on collection basis or immediate credits subject to banks existing terms and conditions governing such business. The ATM services are for

withdrawing cash against the balance that is already available in card holders account. Where the ATM is not running on line, the transaction in the ATM will be accounted for on the same day or on the next working day. Cards issued from branches in other. Centers can be used only at the SBI ATMs for which the card has been issued. Most ATMs are connected to inter bank net works. Most ATMs are connected to inter banks networks, enabling people to withdraw and deposit money from machines not belonging to the bank where they have their account. This is convenience, especially for people who are traveling. Advantages of ATM The ATMs have emerged as robust, reliable and secured delivery channel for customer. While offering convenient and flexible banking service to the customers, the ATMs also offer economical and convenient service model for the banks. The major advantages of ATMs are as follows: Twenty four hour service has been provided by ATM which automatically makes a twenty four hour banking business. ATM is a very simple means of usage, since it is working on the basis of the programs; it offers quick and efficient service to the user. The logical steps to be followed by the user is programmed and displayed in the screen while he is using ATM. So the response of ATM is fixed. With the net worked ATMs, the banks are able to offer any were banking for basic banking service. An ATM card holder of any branch can operate his account through any other ATM branch. The bank saves on transaction cost, as cost of ATM is much less than trick structure of the branch. Inter bank reconciliation is immediate their by reducing charges of fraud and misappropriation. ATM act as a value added product to the bank so that the bank can attract more new generation customers.

Effects of ATM in Indian bank industry In Indian banking sector is trying to reach along with other developed countries like USA, UK etc, in the area of customer banking by introducing new innovative technology like ATM. Bank transaction through ATM is widely spreading in India. Seeing the ever increasing ATM market in NCR co-operation worlds largest manufactures of ATM have decided to start the manufacturing units in India. New generation banks like ICICI, HDFC, IDBI, UTI etc are concentrating more in increasing the number of ATM as compared to the old generation banks. The banks are almost doubled the number of ATMs in the last financial year. Changing trends in ATM Today ATMs are just a cash vending machine. Banks are now looking ATMs as out lets. Where a customer can conduct any transaction that he can do in a bank, including opening an account. Most of the ATMs have the facility to pay the utility bills through a separate terminal available of internet facilities. In several place ATM is a virtual branch as

customers can conduct any transaction. Many of the ATMs, in near future, will have touch sensitive screens, which will enable customers to log in and do banking transaction. Having most banks installed their own national network of ATMs. The high cost of transacting a foreign ATM includes banks to have an industry wide network. As far s the customer is concerned, transaction cost on an ATM which belongs to another bank can be as high as Rs. 30 considering that withdrawal are for immediately as requirements, the percentage cost can be very high. One bank agrees on an industry wide network, it well enhance the popularity of ATMs manifold. Banking industry that has proliferated its activities in terms of geographical boundaries and diversified services provides the benefits of technological innovations not only to customers but also to the banking personal. The major advantages of ATM such as cost effectiveness, time savings transaction effectiveness etc are attracting more and more customers to enjoy this technological innovation. It is in this context that this study was attempted to evaluate the effectiveness of ATM in shaping a customer behavioral pattern as well as organizational culture. Talking ATM A new innovative technique A talking ATM is a type of ATM that provides audible instruction so that persons who cannot read an ATM screen can independently use the machine. All the audible information is delivered privately through a standard jack on the face of the machine. A user plugs a standard headset in to the jack and can hear instructions such as press 1 for withdrawal press 2 for deposit. There is an audible orientation for first time users. And audible information describing the location of features such as the number keypad, deposit slot, and card slot. The worlds first talking ATM for the blind was an NCR machine by Royal bank of Canada on October 22, 1997 at a branch bank on the corner of Bank Street and Queen Street in Ottawa, Ontario. Shared ATM networks Since ATMs are expensive machines, banks may share the cost with other banks or share the use of ATMs belonging to other banks that are part of the network. The biggest advantage of this network is that ATM cards issued by different banks can be used at any member banks ATM. Working of ATM Step1- swipe or insert your card horizontally or vertically with the magnetic stripe facing the slot, depending on the position on the access lock on the door of the ATM room. When the green light glows, the card is taken back then push the door gently and move in to ATM enclosure. Step 2 insert the card into the ATM in the slot indicated if the ATM is a dip- card ATM, dip the card in the slot and take it back. Step 3 the screen now display the options Banking/ services/ internet banking from which the customer can select one by pressing the selected service on the screen. The card will then prompt you to select you to select the language in which you desire to: in ATMs where this option is available. However, a present only English option is available. Step 4 next the ATM will prompt the customer to key in the PIN: care must be taken to enter the correct PIN. After the PIN is input, the ATM processes the information and if

found correct, guides you step by to conduct further transactions. If the wrong PIN is input thrice, the card will be rejected for the rest of the day. Step 5 at this stage, options will appear on the screen and the customer can choose the approximate option from among FAST cash/ cash withdrawal, the customer will have to select the account to operate from choices, which appear on ht screen from current/ from savings. After choosing the account, he has to enter the required amount to withdraw. After this the customer is given an option to verify whether he has recorded the correct amount. To confirm his entry, he has to select from Yes/No. if yes is used to confirm a correct entry of figure, he proceeds to the next stage. Step 6 after this the customer can collect the cash and then the transaction slip. Step 7 after collecting cash and the transaction slip, the customer has to press the button on the door of the ATM counter to come out, if it is an ATM. Reference 1. Chawla. A.S, Uppla K k And Keshav Malhotra, Indian Banking Towards 21st Century, Deep And Deep Publications, New Delhi, 1988 2. Ravi Kalakota And Andrew B. Whinston, Electronic Commerce, Addition Wesley Longman (Singapore) Pvt. Ltd. Delhi 2000 3. Andrew S Tanenbaum, Computer Networks Hall of India Pvt. Ltd Mew Delhi, 2001.