1. ATM Banking in India: Problems
and Prospects
Presented By:
Ashish Saini
Dr. Ravindra Kumar Saini
2. INTRODUCTION
ATM (Automated Teller Machine) or a cash
point is a computerized machine.
ATMs plays a vital role in facilitating the banking
services to banks as well as customers.
ATM is the back bone of retail banking sector.
3. The idea of ATM machine developed simultaneous in
Japan, Sweden, U.K and U.S.A.
The first cash dispenser machine developed by
“Luther George Simjian ” in Feb.1963, which
known as “Bankograph”.
The second dispenser machine developed by John
Shepherd Barron which matched PIN(Personal
Identification Number).
This machine known as “DACS”.
The first modern ATM use in Dec. 1972 in UK.The
IBM 2984 designed on the request of “Lloyds Bank”.
(Contd.)
4. This design was similar in function of today‟s
machines.
HSBC-Honkong and Shanghai Banking
Corporation introduce the first ATM in India
in 1987.
5. Table:1 Growth of ATMs in India
Year Number of ATM
2005-06 21,110
2006-07 25,247
2007-08 34,547
2008-09 43,651
2009-10 57,765
2010-11 76,871
Source :-Cyber Media Estimates Research in Banking 2010
6. Growth of ATM in India
90,000
80,000
70,000
60,000
50,000
40,000 Number of ATM
30,000
20,000
10,000
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Source:Report on Trend and Progress of Banking in India 2010-11
7. Growth of ATMs in the World
Year Number of ATM
2007 1,780,189
2008 1,912,178
2009 2,029,224
2010 2,154,970
2011 2,235,835
2012 2,407,775
2013 2,609,160
2014 2,848,190
Source: Global ATM Market and Forecasts to 2011 (Retail Banking Research)
8. Growth of ATMs World wide
3,000,000
2,500,000
2,000,000
1,500,000
Number of ATM
1,000,000
500,000
0
2007 2008 2009 2010 2011 2012 2013 2014
Source: Global ATM Market and Forecasts to 2014 (Retail Banking Research)
9. Functions of ATM
The concept of ATM is 24× 7× 365.
Flexibility of using ATM of other banks i.e. we
can make transaction from any ATM while our
account not in same bank.
Can recharge their mobile phone prepaid
connection.
Pay the bills.
Money transfer from one account to another one.
(contd.)
10. Check the balance of account at any time.
Register their mobile number for account details.
Deposit the cheques in account.
11. Problems with ATMs
Problems of ATMs categories in two category :
1) Problem faced by Customers:
They didn‟t receive cash while the is account
debited.
Wrong insert the ATM card. This problem is more
common with new ATM users who are not
familiar with ATM machine.
They didn‟t receive slip of account balance.
(contd.)
12. Money transfer problem.
Some time money stuck in machine at the time of
transaction.
Some time machine didn‟t accept ATM cards.
Time out problem when the customer late for any
step of processing.
Customer face the problem when the process of
bank is change.
When cash not available.
13. 2) Problem faced by Banks :
Theft money from ATMs.
Burglary of ATMs (including theft of entire
ATMs).
System problem (including server down).
System failure (system crash or the software not
work properly).
Hack the Bank‟s site which affect whole
banking system.
14. Factor For Growth of ATM
Make transaction any time and more than one
time in a day.
Take less time to make a transaction than a teller
in banks.
Easy to use for people.
Much reliable i.e. no body can access your
account without your permission.
(contd.)
15. It
reduce the bank „s work load.
Accurate transaction.
Can make payment for purchase anything.
16. Cost of Transaction with various mode of
Banking
Mode Cost Per Transaction (in Rs.)
Teller System 1
ATM 0.45
Phone 0.45
Debit Card 0.2
Internet 0.1
Source: IBA Bulletin special issue 2005
17. 1.2
1
0.8
0.6
Cost in Rupees
0.4
0.2
0
teller ATM Phone Debit Internet
Source: IBA Bulletin special issue 2005
18. Conclusion
As the banking sector computerize day to day, and
ATM have became a part of modern banking
system.
The banks in developing country adopt ATMs to
improve their own internal process and also for
increase facilities and services of their customers.
Now customers become aware about this machine.
The growth of ATM rapidly high at the world wide
level also in India.
This technology is simple, safe and secure and
people feel satisfaction to use this.
