SEMINAR ON ATM(Automated Teller Machine)

Amanjit kaur

6794

MBA-3rd sem

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.

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.

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.

• (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.

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.

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.

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.

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.

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.

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.

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.

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.

• 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.

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)

CONCLUSION