2. Automated taller machine (ATM)
• "Automated Teller Machine" it’s a
machine used by the banks all
over the world. This machine
allows the account holder to have
transactions with their own
accounts without allowing them to
access the entire bank's database.
You can use the ATM of a bank in
which you do not have an account
by paying some charges.
3. What is an ATM card is:
• It is a card issued by the bank,
credit union or building society
that can be used at an ATM for
deposits, withdrawals, account
information or other kind of
transaction, often thought inter
bank networks. it is also known
as bank card, client card, key
card or cash card. On ATMs
the customer is identified by
this plastic ATM card with a
magnetic strip that contains a
unique card number and
identity information.
4. HISTORY OF ATM’s:
• (a) The idea of self service in
retail banking leads to the
development of an ATM
machine. the simultaneously
efforts in Japan, Sweden, UK
been credited in developing
the first cash dispenser
machine.
• (b) The first ATM called bank
automat was installed in
Barkley’s bank in north London
UK on 27th June 1967 by john
shepherd Barron.
5. • (c) Automated Teller Machines (ATMs)
have gained prominence as a delivery
channel for banking transactions in India.
Banks have been deploying ATMs to
increase their reach. the number of ATMs
in india,2012 are 1,42,000 approximately.
6. WHERE ATMs ARE PLACED:-
• ATM’s are not placed only in banks but also in the airports, grocery
shops, restaurants or any place where large number of people
gather.
There are two types of locations for the ATM’s:-
• (1) On premises- machine that accomplish that actual bank
branch and are more advanced and multi functioning and having a large
capability of storing data and are very costly.
• (2) Off premises- machine that are developed by financing
institutions where there is usually a straight need of cash and are cheaper
and mono functioning.
7.
8. How to use the ATM:-
1) Go to the ATM of the particular bank which banks ATM Card you have or any of the other
bank.
2) Insert the ATM card or sweep the ATM card. Whatever facility ATM machine have.
3) Enter you PIN (Personal Identification Number)
4) Now Press the button CONTINUE.
5) Now the ATM Machine Screen will ask for SAVING ACCOUNT, CURRENT ACCOUNT etc.
6) Select the account which that ATM CARD belongs to.
7) Now ATM Machine screen will ask for ENTER the Amount. After entering the amount click on
continue.
Note:- Whatever amount is enter should be in multiple of 100.
8) Now, ATM Machine screen will show that "Whether do you want Transaction receipt?" Now
press the button on "YES". Incase you don't need the transaction receipts otherwise press on
"NO".
9) Now ATM Machine will give you money.
10) Take the money and count it before leaving the ATM.
9. Global use of ATM
• Today ATMs are been used globally.
• The number of ATMs using currently are
about 1.8 million in all over the world.
• Globally they are divided into seven
regions
• ATMs are fastly using in Canada, USA,
Europe, Japan.
10. FINANCIAL NETWORK
• Most of the ATM’s are connected through inter
bank, enabling people to withdraw or deposit
money to the machine not belonging to the bank
where they their account.
• The ATM’s are directly connected to the host via
ADSL over a telephone line or leased line if they
are not the users then the permission for
withdrawal or deposition is not given as shown
an ATM’s interface with user and bank.
11. CUSTOMER IDENTITY
INTEGRITY:-
• To verify card holders identities have been
tested and deployed in some countries,
such as finger and palm vein patterns, iris
and facial recognition technologies must
be included for safety.
12. ADVANTAGES:-
1. ATM provides 24 hours service
ATMs provide service round the clock. The customer can withdraw
cash up to a certain a limit during any time of the day or night.
2. ATM gives convenience to bank's customers
ATMs provide convenience to the customers. Now-a-days, ATMs
are located at convenient places, such as at the air ports, railway
stations, etc. and not necessarily at the Bank's premises. It is to be
noted that ATMs are installed off-site. (Away from bank premises)
as well as on site (installed within bank's premises). ATMs provide
mobility in banking services for withdrawal.
3. ATM reduces the workload of bank's staff
ATMs reduce the work pressure on bank’s staff and avoid queues in
bank premises.
4. ATM provide service without any error
ATMs provide service without error. The customer can obtain exact
amount. There is no human error as far as ATMs are concerned.
13. 5. ATM is very beneficial for travellers
ATMs are of great help to travelers. They need
not carry large amount of cash with them. They
can withdraw cash from any city or state, across
the country and even from outside the country
with the help of ATM.
6. ATM may give customers new currency
notes
The customer also gets brand new currency
notes from ATMs. In other words, customers do
not get soiled notes from ATM.
14. DISADVANTAGES:-
• Security
Unlike bank tellers, ATMs do not require the person performing the
transaction to present a picture identification. Rather, the person must only
insert a bank card and enter a personal identification number. If the bank
card is stolen and the number ascertained, an unauthorized person can
easily access the account.
• Inability To Perform Complex Transactions
ATMs can only perform relatively basic transactions. This means that
people who need to complete these longer transactions will be forced to use
the teller, restricting use of the ATM for people who need to complete simple
business. In this sense, the ATM Is rather like the express line in a
supermarket--faster for some, but unavailable to others.
• Fees
With the advent of ATMs came ATM fees. Not only do banks of which you
are not a member charge fees for the use of their ATMs, but users are often
charged surreptitious fees by their own banks for using other banks' ATMs--
meaning the customer is docked twice for the same transaction.
15. • Difficulty of Use
The performance of business at an ATM is generally quicker than that at a
human teller. However, the ATM is incapable of providing personalized
instruction to the user in a way that a human teller can. This can result in
longer wait times if the user currently using the machine is struggling to
complete a transaction.
• Eating a Card
Occasionally, ATMs will malfunction and swallow a user's ATM card. The
customer will then be directed to contact a service number or their bank and
wait for a repair technician to retrieve this card. While this happens only
rarely, if it occurs on a weekend or at night, the user may be left to wait for
several days before they can again use their card, something that would not
happen with a human cashier.
• Privacy
Unlike banks, in which security guards and tellers are present to ensure the
person performing a transaction receives privacy, there is no such
guarantee when using an ATM. People may try to spy on users as delicate
information appears on the screen, without the user being aware.
16. AN ATM’s IS MADE UP OF
FOLLOWING DEVICES:-
• CPU
(To control the user interface and transaction devices)
• Magnetic card reader
(To identify the customer)
• Display
(Used by user for transaction)
• Function key or touch screen
(Used to select various aspects of transaction)
• Record printer
(To provide user the record of their transaction)
• Vault
(To store the parts of machine requiring restricted transaction)
• Housing
(For aesthetics and to assign signage)
