The document discusses the history and features of automatic teller machines (ATMs). It begins by explaining how ATMs provide convenient banking access for customers 24/7. It then describes the basic functions of an ATM and how customers can deposit, withdraw, and check balances without bank employees. The document outlines the origins of the first ATM in the 1960s and its growth. It also covers the types of ATMs, how to use an ATM, the advantages and disadvantages, and newer technologies like biometric authentication and real-time gross settlement systems.

1. Automatic Teller Machine

2. INTRODUCTION
Now a days, customer demand for
quick & instant service which will be
time reducing & convenient banking
rather than waiting in queue at various
cash counters at the branch.
ATM i.e Automated Teller Machine is
the part of recent technology. This
makes banking business available for 24
hours on nonstop service basis for 365
days a year. Hence the ATM cards are
new product of banking business.

3. What Is ATM ?
 It is a machine that enables a bank’s
customer to deposit money in a bank,
withdraw it, transfer it, & check the debit in
one’s account accurately without the help
of bank employees. For this, the bank gives
the customer an ATM card. The ATM
machine is placed in small room &
functions with the help of computer
network to which is connected.

4. HISTORY
An American named Don Wetzel who introduced the concept of ATM was a planning vice
president of Docutel Co. By his personal comments of facing problems of facing problems with
transactions, he thought about a machine which can make transaction easy. Tom Bernes, a mech.
Engineer of the same co. & George Chastain an electrical engineer joined their hands with
Wetzel. From 1968 with 20 people in constant research finally in 1973 Docutel co. obtained the
patent for ATM.
The problem was, no bank was interested to approach this new machine to avoid abnormal
risks. With the help of some students Wetzel conducted a survey to find out the interested
people to do monetary transactions by using a machine & who are against for this technical
introduction. Youngers supported positively. There was no problem to produce ATM cards, as the
people were already familiar with Credit Cards in America. The problem is to fit magnetic strips
with personal ID numbers. Wetzel & his team then invented this facility by which, all information
of bank account holder will be imported through card in to computerised machine.
The first ATM was installed in American Chemical Bank. Till 1979 the machine is only for
withdraw the cash & only for trustworthy customers which changed after 1979 by modifying the
same.
According to ATM system, the customer can get the money any time, deposit & can check the
balance in his account any time. The extensive network of ATM functions through a Financial
Transaction Switch (FTS). This switch is the nerve centre of all ATM transactions.

5. History

6. TYPES OF ATM
On site ATMs
Off site ATMs

7. 1. On site ATMs
An ATM installed at the bank premises for
the customer of the specified branch.

8. 2. Off site ATM
Installed by the bank at important places like
Railway Stations, Bus Stand, Supermarkets,
Airports etc. but only when branches of other
banks are interconnected.

9. Steps to use ATM -
 Insert your ATM card at the space provided for that purpose.
 Type your ATM secret pin using the keyboard provided.
 Immediately the menu with various options appears on the monitor.
 Henceforth you have to otherwise press the button of respective option.
TOUCH THE MONITOR WITH YOUR FINGER at various options.
 Touch the required option on monitor.
 When you choose withdraw, the display will appear with the words – Please
Enter Amount. Then enter the amount & press OK.
 After processing the instructions, ATM will deliver currency notes at the
place provided at the machine. Take the cash & printed receipt.
 Limitations of withdraw are applicable as per type of Account.

10. ADVANTAGE
S OF ATM
1. Attraction of
Customers

11. 2. TO AVOID LONG QUEUES &
DELAY IN CASH COUNTER.

12. 3. HELPS FOR
WITHDRAWALS

13. 4. FLEXIBILITY
ATM provide customers the
flexibility of withdrawing money
at any time & at any where.

14. 5. ATM FACILITIES ARE
AVAILABLE AT ANY TIME,
DAY NIGHT I.E. 24 X 7

15. 6. Marketing tool
to target for
Banks.

16. 7. Reduces
operative cost of
banks

17. 8. Free from
human errors

18. 9. Provides – funds
transfer, request for a
cheque book, a
statement of account,
stop payment of
cheque etc.

19. DISADVANT
AGES1. To operate the account is not possible
to illiterate person.
2. Customers below 14 years are not
allowed.
3. More misappropriation, i.e, if the code
of the customer know by others, in
such case others can draw the money
belonging to other customers.
4. Limitations for withdrawals. (Limit is
20,000 per day for saving account)

20. GREEN CHANNEL COUNTER
OR
PAPERLESS BANKING, SBI’S
NEW MANTRA
The State Bank of India the
country’s largest public sector
bank started a silent revolution
to save the environment by
launching GREEN BANKING. This
is aimed at completely paperless
banking. Customers need not fill
in paper forms to deposit,
withdraw, or transfer their
money under the latest facility.
What they have to do is simply
swipe their ATM card in the GCC
machine. This not saves only
time of customer, but also saves
paper produced by using valuable
trees.

21. BIOMETRIC ATMS FOR
RURAL INDIA
These ATMs are used by illiterate people for withdrawals
based on identification of finger printing & voice. To
boost micro financing initiatives, banks are deploying
biometric solutions with ATMs. Establishing the identity
of a rural depositor through biometrics makes it possible
for illiterate or barely literate folks to become part of the
banking user community. In view of the rapidly
increasing applications, the scope of biometrics is also
increasing, be it identifications via face, voice, retina
or iris. Fingerprinting however, has the advantage of
being a familiar concept worldwide. Some indian
banks have started implementing biometric applications
in retail branch applications for officer authentication. It
is based on non-card generation of transaction but
required user’s fingerprint. So far bank ATMs are
dependent on PIN verification. The fingerprint
authentication method is non PIN based & this requires
enhancements to the standard switch environment.

22. Securing Transactions
with Fingerprints :
With the development of biometric solutions for the ATMs there
is no need to remember PIN numbers. It is specially for rural
people to make use of fingerprint for easiest transactions.
Fingerprints of account holders are captured through the scanner
in the system at the time of accounts opening. A template is
created for each fingerprint by extracting features & stored in the
debit card against the unique customer ID. During verification, the
fingerprint is captured using a fingerprint scanner attached to the
ATM & upon a successful match, the user is allowed to perform
further transactions. These ATMs are having highest quality of
fingerprint, voice, & face detection which is approved by FBI.

23. Benefits of Biometric Supported
ATMs –
 Provides strong authentication.
 Can be used instead of a PIN.
 Hidden costs of ATM card management like card
personalisation, delivery, management, re-issuance, PIN
generation, help desk & re-issuence can be avoided.
 Ideal for Indian Rural Masses
 Accurate
 Flexible account access allows clients to access their
accounts at their convenience.
 Low operational cost.

24. How It Works?
The Biometric ATM solution consist of a central server
which holds a repository of customer fingerprints. The
central server solution is a platform independent, it uses
java & can run on Unix & Oracle/Microsoft SQL server,
customisation to BASE switch (of which FSS is the
distributor) is done using TAL. Biometric app. & devices
from Secugen are used for customer interface &
application development.

25. Real Time Gross
Settlement (RTGS)
These systems are the funds transfer mechanism where transfer of money
takes place from one bank to another on a “real time” & on “gross” basis.
Settlement in “real time” means payment transaction is not subjected to any
waiting period. The transactions are settled as soon as they are processed.
“Gross settlement” means the transaction is settled on one to one basis
without bunching with any other transaction. Once processed, payments are
final & irrevocable.
The work of the committee on payment & settlement systems of the
central banks of the group of 10 countries (CPSS) has consistently emphasised
the importance of large value funds transfer systems which banks use to
settle interbank transfer for their own account as well as for their customers.
Estimates complied by the CPSS indicate that these systems transfer several
trillion dollars per day in the G-10 countries, a large portion of which is
related to the settlement of financial market transactions. It is nothing but a
part of Foreign Exchange.

26. Meaning Of RTGS
– The continuous settlement of payments on
an individual order basis without netting debits
with credits across the books of a central bank.
According to Investopedia, Basically, this is a
system for large value interbank funds transfer.
This system lessens settlement risk because
interbank settlement happens throught the
day, rather that just at the end of the day.

27. CORE
BANKING
It is nothing but centralised
banking.

28. ONLINE BANKING
It refers to the use of today’s
Computer Technology to avoid the
time consuming, paper based aspects
of traditional banking, in order to
manage our finances more quickly &
efficiently.

29. TELE BANKING
Introduction – This is a new E-Banking product. However it is becoming
fast & one of the most popular products. Customer can perform a
number of transactions from the convenience of their own home or office
& infact from any where they have access to a phone.
Meaning – This system is based on GLOBAL system across the world. It is
available with the help of “Voice Response System.” This system accepts
TUNE dialled input & Suitable voice response messages to caller.
Under this system, a secret code number is provided to each
account holder. A Customer wanting to know his bank balance or any
other info. Relating to his bank account should dial up a particular phone
number indicated by the bank. When the number is dialled, a recorded
voice (IVR) will ask you to identify yourself with your account number &
code number. If the numbers are tallied, (or matched) you will get all the
info. You want to know about your account.

30. ADVANTAGES
1. Global system across the word
2. Online feature of changing existing customer password with the one now
desired.
3. Information service
4. Rate of cheque encashed, not presented, stop payment.
5. VRS – Voice Response System.
6. Password for security & protection.
7. Speaking out last five transactions.
8. Info. About latest rate of interest.
9. Info. About various new schemes in bank for deposits of advance.
10. Info. About sanctioned limit & drawing limit of an advances, etc.
11. Requisition of cheque books & statement of account by customer can be
placed on telephone.
12. Instead of 8 hours in all 6 days, now services can be sought for all the 7
days throughout 24 hours (24 x 7)

31. DISADVANTAGES
1. No facility of withdraw.
2. Impossible to operate by illiterate persons.
3. Delay working due to technical issues.

32. COMPUTERISATION IN BANKS
Advantages –
1. Helps for speedy & better service.
2. Helps for Change in work culture.
3. Helps for maintaining Up-to-date accounts.
4. It helps for effective management info. system.
5. Helps for facing competition

33. Limitations –
• Opposition from employee’s unions.
• Lack of personal touch
• Heavy capital expenditure.
• Lack of qualified staff.

34. Difficulties –
Not-availability of experts within the
banks.
Changing technology
Estimation of work load
Un-realistic time schedules
Lack of computer culture.
Lack of infrastructural facilities.

36. It means Electronic Banking. It means
all the transactions are carried through
electronic media.
It refers to linking all the
dealings of the bank through computers
or internet. Introduction of E-Banking
has brought remarkable changes in info.
technology.
When the delivery of bank’s
services to a customer at his office or
home by using electronic technology is

37. Points Traditional Banking E-Banking
1. Time
1. Art or Science
1. Cost of Service
1. Bank Building
1. Places for
transactions
Conducted only during the
specified time i.e. business
hours & business days.
Just an art.
Costly
Essential in doing banking
business.
Branch of the bank
Available round the clock for 24
hours x 7 Days.
More science than an art as it is
knowledge based & mostly
scientific.
Cheaper
No bank building is required.
Website is essential.
Anywhere using electronic
devices like PCs & Internet valid
phones
Difference Between Traditional Banking & Electronic
Banking-

38. FACILITIES OF E-BANKING
1. Account can be opened in any branch of bank throughout the world.
2. Shifting of accounts through Internet.
3. Withdrawal of Money.
4. Deposit of money.
5. Branches will render state of the art services in a high environment.
6. The bank aims to widen its clientele base with particular focus on tech
savvy younger generation customers.
7. Single window facility for all transactions.
8. Remote login facility.
9. The minimum deposit (SB – 1000 & CA – 5000)
10.Service charges are reliable.
11.Not related with working hours.
12.Sweep out , Sweep in facility.
13.Automatic overdraft facility.

39. ADVATANGES
To the customers –
1. Open the account any where i.e. anywhere banking.
2. Fund transfer
3. Convenience
4. Any time banking
5. Reduce the costs of banking
6. Cash withdrawal
7. Customer can submit – Stop Payment of cheque, Cheque book
replacement, DD/PO, Opening a final deposit account.
8. Purchase of goods with same amount but in Cashless method.
9. Electronic shopping mail
10. Helps for effective personal investments.
11. Helps for payment of bills.

40. To the Banks.
1. Innovative
2. Economy
3. Reducing of fraud & misappropriation.
4. Marketing tool indeed
5. Helps to provide competitive advantage to the bank.
6. Provides the cash anywhere with the help of ATMs on road sides
7. Helps to maintain better customer relationship.
8. Provides mobilized banking.
9. Reduce the load of braches.
10. Helps to maintain cordial relationship.

41. To Traders –
1. Helps to increase the business.
2. Reduction of credit sale to customers.
3. Helps for globalising the trade.
4. Helps to immediate settlement/payments.
5. Reduces the risk of cash handling.

42. To the Govt. –
1. Provides global market to national
products & services.
2. Promotes the exports & increase of inflow
of foreign exchange.
3. Globalisation of trade through e-
commerce.
4. Reduces the risk of cash handling.

43. To the Bank Employees –
Helps to avoid the make use of paper like DD
forms, Books etc.

44. Other Benefits –
 Convenience
 Safety
 Economy-banking without visiting your
bank
 Cheaper service fees
 Easy customisation
 Lower costs of both installation &
maintenance.

45. Disadvantages of E-
Banking –
1. Abuse of bank cards by
fraudsters.
2. Danger of giving your card
number when buying on line.

46. FEATURES OF E-BANKING
1. Introduction of magnetic Ink Character Recognisation (MICR)
2. EFT system
3. Cheque Truncation Technology
4. Personal computer power.
5. 24 x 7 Banking
6. Interactive Voice Response System
7. Insurance products, share dealings.
8. Credit sales, direct debits, televised or computerised retail
sales.
9. Development of plastic cards.

47. MAGNETIC INK CHARACTER
RECOGNISATION
(MICR)
Technique to automatic labour intensive business of clearing
cheques.
It is new technology which has been introduced by the RBI for
speedy clearing process. The scheme has been initially
introduced in four metropolitan cities like – Delhi, Chennai,
Kolkata, Mumbai. Now it is available for all Big Cities.

49. FORMS OF E- BANKING
1. ATM
2. Online Banking
3. EFT
4. PC Banking
5. Internet Banking
6. Telephone Banking
7. Banker’s Automated Clearing System (BACS)
8. Clearing House Automated Payments System (CHAPS)
9. Society for world wide inter banking fast transfer (SWIFT)
10.Cash management Service
11.Smart Cards
12.Electronic Clearing Services
13.Electronic Data Interchange (EDI)
14.Credit Cards
15.Debit Cards

50. THANK YOU
PRESENTED BY – ANIKET PUJARI (B.Com, MBA Pursuing)