ATM Services : An Overview

                                         ATM Services :  An Overview

                                                                By

                                                T. Venkateswara Rao

                                                          M.Com., M.B.A.

                                                  Assistant Professor

                                              The Hindu College-MBA

                                                     MACHILIPATNAM

________________________________________________________________________

Background:

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. As at the end of December 2007, the number of ATMs deployed in India was 32,342. From first day of April 2009, entire ATM network is now available to customers from any bank for transactions for no fee at all, irrespective of the banks in which they have their accounts, Now Customers will not be levied any fee on cash withdrawals using ATM and debit cards issued by other banks. This will in turn increase usage of ATMs in India. More people are now moving towards using the automated teller machines (ATM) for their banking needs. According to a survey by Banknet India, 95% people now prefer this modern channel to traditional mode of banking. Almost 60% people use an ATM at least once a week.

 However, the ATM services in India are more convenient to the customers, the customers are facing number of problems in operation, and receiving the service. 

Hence this paper is meant for the study of customer satisfaction and loyalty, the history and growth of Indian ATM services market, the history and growth of Indian Banking Industry and the comparison and contrast of  ATM services provided by the Public and Private Sector Banks.

The objectives of the study are To evaluate the history and growth and an overview of Indian ATM services. The data is collected from secondary sources such as magazines, news papers and web sites. 

 History and Growth of Indian ATM Services:

The first Automated Teller Machine (ATM) was introduced in the year 1967 by Barclays Bank in Enfield Town in North London. At that time a few would have anticipated excess in ATMs. Then for many years after, the aim was to shift people off the teller lines thus lowering a bank‘s distribution costs and increase efficiency. But in the 1980s, it was noticed that people continued to visit branches, though not as frequently, so that with the added costs of ATMs, overall distribution costs were actually rising.
Then, in the mid-1990s, came surcharges, which fuelled the proliferation of off-premises ATMs, which led in turn to the current overcapacity.

There was a slowdown in ATM transactions, partially because of the consumer's reaction to the imposition of surcharges.

Also by the advent of surcharging there was a massive growth in the number of ATMs as it offered ATM owner's revenues making it economical to install ATMs where they might not have been placed otherwise?

ATM Services:

1. Withdrawal
2. Balance Inquiry
3. Fast Cash
4. Funds Transfer
5. Automated Customer Complaints Handling System

 Need for ATM Services:

1. Increase Processing Transactions
2. Offer More Services Than Your Competitors
3. Meet the Needs of Your Customers
4. Create ISO Loyalty
5. Increase Your Customer Base

 Scope For ATM Growth In India:

Mumbai, May 30:"When we saw a man in a dhoti in a remote town in South India withdraw money from an ATM, tuck it in the folds and ride away on his cycle, we were truly inspired by the ATM growth in the country." These were the words with which ICICI Bank general manager OP Srivastava, described the scope of ATM growth in India.

The focus in the ‘ATMs in India' conference on Thursday, was on increasing the ATM network in India on a large scale.

 Interbank Networks in India:

An interbank network, also known as an ATM consortium or ATM network, is a network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of other banks within a given network.

The most important aspect for reducing ATM related fraud is to educate the customer. Here is a compiled list of guidelines to help your customer from being an ATM fraud victim:

1. Look for suspicious attachments.
2. Minimize your time at the ATM.
3. Make smart deposits.
4. Avoid using ATMs at night
5. Be aware of your surroundings.

 Use of ATMs:

1. Cash Withdrawal and Balance Enquiry
2. Cash /Cheque Deposit
3. Bill Payments
4. Sale of Paper Based Products

Recent Trends in Indian ATM servi

1. Canara Bank to set up ATMs at Railway Stations
2. RBI ups India's GDP growth forecast to 6.5 pc
3. Banks limit free use of third party ATMs
4. No charge on withdrawing cash from other bank ATM's from April 1 New Delhi, Mar 29 (ANI)
5. ATMs in running trains soon

Conclusion:

Today's E-banking World, Banks are playing very important role by providing maximum varieties of services such as withdrawal, balance inquiry, fast cash,funds transfer and Automated Customer Complaints Handling System etc.,  through ATMs' to the optimal satisfaction of the customers.