1.

0 Introduction

E-banking is defined in this policy as the automated delivery of PML

banking products and services directly to customers through
electronic, interactive communication channels. PML customers access
e-banking services using intelligent electronic device, such automated
teller machines (ATM), Mobile telephones.

Advantages of E-banking

• 24 hour services

• Convenient

• Other sources of revenue for PML

• Counter competition

• Utilize technology trends

Roll –out Plan

The ATM service will be available at Entebbe Road, Wandegeya, Nakawa,

Kabalagala, Katwe and City centre branches. Introduction and availability of
the ATM service will be extended to other branches and offsite locations in
subsequent years. The plan is to have an installation of 3 ATMs per year.

ATM services

PML Automated Teller Machines (ATMs) provide the under-listed self-service

banking facilities to PML customers who operate accounts with it.

 Fast Cash
 Withdrawals (Other Amounts)
 Account balance inquiry
  Mini-statement printing
 Personal Identification Number (PIN) change
 Deposits
 Statement Request
 And other services that will be available at a future date

ATM Operations

ATM Components

Card Holder Interface

The cardholder interface is the area of the machine the customer uses
to access the machine to obtain service. It consists of:

 Monitor – Which displays user friendly transaction selection and

customer lead-through screens.

 Eight (8) Function Display Keys (FDK) – These are arrowed keys
arranged in two rows of four on either side of the monitor. They
are used to select the services required including predetermined
“Fast Cash” amounts displayed on the screen.

 Cardholder keyboard – This is the key board used to enter data

such as PIN, cash withdrawal amounts, deposit amounts etc.

 Card Entry slot

 Receipt issue slot

 Currency issue slot

 Statement issue slot

 Envelope dispenser
  Depository slot

Operator Interface

This is the area used by the operator and other officials to monitor and
service the ATM. It consists of the Operator Panel which is located at the
back of the ATM. The screen displays exactly what the customer screen at
front of the ATM is displaying, apart from the time it is being used by the
engineers or the Bank's ATM staff for servicing of the machine. Branch staffs
will also use this screen for daily service operations.

Currency Dispenser

This is the mechanism that picks notes from the currency cassettes and
presents them to the customers in a single stack. If the customer does not
collect the notes within a predetermined time period (20 Seconds), the notes
are purged/retracted into a reject bin in the machine.

Safe
The ATM contains an in-built safe that houses the currency dispensers,
depository bin and data encryptor. This is accessed by a combination lock
and keys and should be kept under the dual control of the Custodians or any
designated official in accordance with PML policy for keeping security keys.

Magnetic Card Reader / Writer (MCR/W)

This is the device that reads from and writes to magnetic cards or any card
designed to be accepted on the ATMs. In the event of a power failure that
affects the ATM, any card that was in the process of a transaction will be
returned to the customer.

Capture Card Bin

The card capture bin is situated behind the receipt card reader area. It can
hold up to 30 cards retained by the machine

Receipt printer

The receipt printer gives a record of transaction (s) made, and presents it to
the customer. The receipt printed either shows the amount of cash
withdrawn, the account balance (actual & available), or the reason for not
offering services or for card capture.

Journal Printer

The journal printer prints on a roll that shows a comprehensive record of all
transactions, states and activities of the ATM. It, records all ATM transactions
that take place i.e. from cash withdrawals to communication loss, card
captures to opening and closing of the safe and cabinet door. It also records
end-of-day balances during- Daily Service. The journal is mainly used for
investigating errors and complaints from customers and for reconciliation
purposes, at the branch level.

The ATM Daily Operations

The ATM works on the same principle like a Teller.

ATM Replenishment
Replenishment procedures apply to the subsequent provision of cash,
ribbons, journal rolls. It also covers the removal of captured card/cash in the
reject bin.
To perform a Cash replenishment, follow the process flows and approvals as
stipulated in the policy.
Print the current ATM transaction totals
Print the current cash counts and totals of journal roll
Print ‘signature’ roll at the bottom
Prompt you to tear off the journal roll
DR: GL ATM Cash Account
 CR: GL-Reserve (Branch) Account

ATM Cash deposits

ATM deposit envelopes will be retrieved on daily basis under the dual
control of at least the chief cashier and the Accountant or manager plus
the staff required to verify to the ATM cash deposits. However customers
accounts are credited only after envelope verification.

ATM Balancing

One of the internal accounting control tests is to reconcile the ATM

Switch/Bankers Realm and ATM totals. The purpose is to ensure all ATM
transactions have been communicated properly to Banker Realm. Where
there is disagreement (which is unlikely) it implies there is a problem in the
General Ledger balancing process. This must be investigated.

In certain circumstances, the Bank World System is unable to determine the

result of a Cash Dispense operation. This can be due to one of the following
reasons

• ATM communications failure during cash dispense

• Loss of ATM power during cash dispense
• Cardholder refraining from taking cash when presented
• Certain hardware failure in ATM Cash Dispenser (unusual)
In most cases, an unconfirmed dispense operation will be due to an
interruption in communication at a critical moment of a dispense

System reports help to balance the ATM

Type of report Report Details;

Local ATM Activity  Shows transaction details according to ATM for
particular business day
 It is the main report that reconciles Bankers Realm &
ATM switch
 Missing/out of sequence transaction sequence numbers.

 Transactions, which may not have been posted to host

 Any void transactions, which may have been

erroneously posted to host

• Shows 3 sections;
i. the ATM activity highlighting all possible problem
transactions.

ii. Controller-accumulated totals

Prints ATM switch accumulated totals for each ATM

(generated by the switch). If the controller totals do not
match the General Ledger totals (reported by the ATM), you
should investigate and resolve any discrepancies.

ii. General Ledger totals. Shows the following for each ATM:

General Ledger Local Totals - totals for cards authorised

locally

iv.Summary totals

A summary of totals for all ATMs with controller accumulated

local totals. General Ledger Local Totals, General Ledger
Switched Out Totals and General Ledger Combined Totals.

1. Branch Activity

• This is similar to the above Report, but sorted by

branch, which issued the card, not the ATM where the

card was used.

• It is less detailed than the Local ATM Activity Report.

e.g. it does not highlight missing transactions), but is
 still useful.

2. Audit Report This is a record of daily service totals printed on the ATM
journal roll during each daily service. The ATM journal shows
how much cash was loaded, how much dispensed, and
therefore how much remaining. A physical count of the notes
should match the journal figures. The ATM prints these figures
on the journal and sends the information to the switch.

Physical totals are accumulated per ATM, between Daily

Services. Logical totals are accumulated per ATM, between
General Ledger Balances. These two periods, Daily Service
and General Ledger Balancing, are not the same - they serve
different functions, and should not be confused.

3. Transaction Log This report lists all messages logged by Sparrow. You might
use this to investigate precisely what an ATM sent.

The transaction log will print the following details foe each
message that has been logged: ATM ID; country code; branch
code; transaction sequence number; date and time (of ATM
switch receiving the message); message function code, on-
line flag; Message data.

4. Reject This report lists all the transactions rejected by the system.
Transactions
The following details are printed for each transaction that has
been rejected: transaction sequence number; on-line flag;
source account; transaction code (e.g. 540 for funds
transfers); transaction description (e.g. Cash Deposit);
amount; currency code of the amount; branch number; the
reason for the rejection (refer to Appendix X).

5. Card Exception This report lists the card exceptions reported by each ATM.
The first entry ATM 0000 shows:

Changes in communication between ATM switch and ATMs

connected to it. Date, time, ATM ID and change in
communication (set on-line, off-line or stopped polling) are
 important for each change in communication state.

Problems with communications between ATM switch and

Host, (e.g. if rejections are received from the Host).

6. Device • Lists the exceptions reported for each ATM according to

Exception Business Day.
• Shows ATM switch reports date, time, device and status
(refer to Appendix XI) for each exception reported.
Gives summary of which ATMs reported any device
exceptions.

7. Tamper
Indication

ATM REPORTS PRODUCED BY Bankers Realm/Bridge at the End-of-

Day operations;

Report Details

ATM Transactions • Indicates transactions for each Branch for all ATM’s
Journal in its Location that were passed successfully from
ATM switch in a business day.
• It should be the same count as those for ATM switch
in its Transaction Log file.
ATM Cash GL Entries • Shows total amounts in Savings accounts withdrawn
from respective Branch ATM Machines.
• Indicates cash loaded into the ATM’s. This should be
compared against the Branch ATM Activity report.
ATM Charge Journal • Shows charges associated with the ATM processes.
• Indicates the accounts charged fees.
ATM Rejected • Shows entries processed to Bankers Realm but have
Transactions been rejected to the account and indicate reason
code.
• It is compared with entries indicated in the Repair
window in Bankers Realm, which gives the reason
code.
 System generated entries during cash transactions

When the ATM dispenses cash to the customer it will automatically generate various
entries as detailed below. -

For example if the cardholder's account is at City Centre branch and he withdraws
from the City Centre Branch ATM

DR customer's account at City Centre branch

CR ATM cash account City Centre branch

If the cardholder's account is at City Centre branch and he withdraws from

the Wandegeya Branch ATM

DR customer's account at City Centre

CR City Centre Interbranch account

DR Wandegeya Interbranch account

CR ATM cash account – Wandegeya

Internal Controls

ATMs safes. The ATM safes must be properly locked under dual control using
a combination code and the safe keys which will be controlled separately by
different staff.

ATM Keys.

ATM room access. Ensure security is alart and must register in the access
register. We shall also have CCTV monitoring tools.

Cash loading. Only approved cash levels must be maintained in the ATM.

Terminal servicing schedules must be strictly followed

Change of ATM custodians must be done periodically.

Snap checks by Audit must be performed.

ATM monitoring by e-banking must be performed.

Risks. Was covered yesterday.