DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : Raja Sekhar Koduru

Designation : Lecturer In CCP
Branch : DCCP
Institute : GPW,Kakinada
YEAR/SEMSTER : VI SEMSTER
Subject : Banking II
Subject Coce : CCP-604(B)
Topic : Customer Facilities Offered By Bank
Duration : 50 Mts
Sub Topic : ATM
Teaching Aids : Power Point & Pictures
CCP.604(B).24 1
Objectives:

On completion of this period you will be

able to
 List the types of ATMs
 Explain the ATM Mechanism
 List the services of ATM
 Explain the Benefits to the Customer.

CCP.604(B).24 2
Recap

 ATM means Automatic Teller

Machine
 PIN is used to identify the customer
 Any time, Anywhere, Anyhow
Banking is possible with ATMs

CCP.604(B).24 3
ATM Types

ATMs broadly fall into two categories

2. Lobby ATMs
These are the ATMs that are installed in branch
lobbies of the concerned bank

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ATM Types

2. Through-the-wall ATMs…
 These are the ATMs that are installed in wide
range of locations spread over the country and
sometimes overseas too
 They are located not only in bank branches but
also in shopping malls, alongside department
stores and supermarkets, and in small, ‘kiosk-
type’ mini-branches which are frequented by
more and more people

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ATM Types

2. Through-the-wall ATMs
 They are found in places ranging from railway
stations to shopping malls, airports and even on
board ship with the link between the ATM and the
host computer being maintained by
radiotelephone

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ATM Types

3. Mobile ATMs
 They are found on board ship with the
link between the ATM and the host
computer being maintained by
radiotelephone
 In India – the mobile on board small
boat was introduced in Kerala where the
most of the people in Coastal Area

CCP.604(B).24 7
ATM Types

3. Mobile ATMs
 Even ATMs are working on
moving vehicles and the move
round the clock around the city.
 These ATMs moves around the
city and stay for sometime at
predetermined places at
particular time and place.

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ATM Mechanism
One who is desirous of using the ATM facility is to
go through the following steps

 Customer of a bank making application for the

ATM card (Debit Card)
 Branch Manager of the bank-branch issuing the
ATM card, fixing the maximum cash withdrawal
limits etc

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ATM Mechanism

 Customer to gain access to the ATM by

swiping the card through a card-swipe located
outside
 Verification of the card and opening of the
lobby door, the entrance lobby are particularly
useful for security reasons as they let the
customer complete the transaction without
any potential mugger or thief being in the
immediate vicinity
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ATM Mechanism

 Customer to insert the ATM card in the

insertion point of the ATM
 Customer to type the confidential PIN, the
correct PIN lets the customer in the
process of ATM
 The ATM to despite the list of functions
waiting to be carried out for the customer,
such as cash withdrawal etc.

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ATM Mechanism

 Customer has to select the relevant

operation to be performed on the ATM

 The ATM carrying out the relevant

operation as selected by the customer

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ATM – Video Play

 VIDEO PLAY -
CASH
WITHDRAWAL
FROM ATM- double Avseq04.dat
click on
avseq04.dat

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ATM – Advantages

 Cash transactions and cheque deposits

 24 hours and 365 days facility
 Utility payment eg. Telephone bills,
electricity bills etc.
 Balance enquiry
 Statement of account for limited period
 Request for cheque book

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ATM – Advantages

 Point of sale facility at departmental

stores or such places
 Issue of traveler cheques
 Acceptance of share application
 Donations to TTD & Shiridi Temple
 Top up recharge of cell phones

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ATM – Advantages
 A network of connected ATMs of
various banks has resulted in the
improvement of customer
services.
 ATMs are used to cross-sell other
products also so as to meet the
varied requirement of customers.
 Banks have started dispensing
railway tickets, Airway tickets,
Movie tickets etc. through ATMs

CCP.604(B).24 16
 ATM – Advantages

 Voice activated ATMs, ATMs with

finger print scanning technology
etc. are on the move.
 If they become operative, they
can save the customers from
hassle of carrying a card.
 In future, a bank’s ATM would
function like a kiosk delivering
more of non-cash transactions
thereby reducing fixed and
operating costs.
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ATM – Benefits To The Customer

 ATMs enable the customer to withdraw

their money 24 hours a day and 365 days
a year.
 Customer need not stand in queues in
banks to withdraw cash and there is a time
saving for them.

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ATM – Benefits To The Customer

 Most of the ATMs provide fresh currency notes.

 They can withdraw money from ATMs located far
off from the branch.
 Stand alone ATMs provide the facility of cash
withdrawals from public places such as petrol
pumps, airports or busy shopping centres.

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Benefits To The Customer

 Wide range of information as to the account

is available to the customers.
 It is not necessary to maintain large cash by
customers with risk attached to it
 Disable customers can use Drive-in-ATMs
for transactions.
 Transaction is secured
 Illiterate persons can use bio-metric ATMs

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Benefits to the Bankers

 ATM helps in reducing the need of human

tellers and thus reduce salary bills of the bank
 Through innovative services, banks can
generate additional business from existing as
well as new clients and thereby achieve long-
term goals of enhancing volumes of business.
 Banks can collect reasonable service charges
on the basis of competitive sphere of banking
scenario.

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Benefits to the Bankers

 ATMs can be located in busy shopping

centers whereby customers can make
payment. Reasonable fees can be
charged per transaction
 Due to 24 hours service customers will
tend to maintain more amount in the
account and keep lower cash with them
leading to higher deposits with banks

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Benefits to the Bankers

 By offering services like collection of

telephone bills, electricity bills etc.
through ATM, bank can earn
commission.
 Public sector banks will be in a
position to face competition with
foreign banks, private sector banks
co-operative banks and non-banking
financial companies..
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Benefits to the Bankers
 Staff to the bank will have more free time that
can be utilized for better public relations and for
introducing new services to clients
 BENEFITS TO RETAILERS: Big retailers such
as departmental stores and super markets can
accelerate the sales due to installation of ATMs
in their premises. Customers can pay directly
through ATM card and the amount can be
credited to the account of the concerned
department store or supermarket

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Summary

 The modern banking offers 24

hours and 365 days withdrawal
facility to the customers through
ATMs.
 ATMs are cost effective and
customer friendly.
 ATMs are based on computer
technology providing variety of
services.

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Summary

 The customer can use his

magnetic stripe plastic cards
(Debit Card and Credit Card) and
get instant cash.

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Quiz

1. What is a mobile-ATM?
 Mobile ATM moves around the city in
particular area at the particular times.
3. List any four services of ATM
 Cash withdrawal
 Telephone top-ups
 Mini account statement
 PIN change facility

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Frequently Asked Questions

2. Briefly explain the different types of

ATMs.(4marks)
3. List out the advantages of ATM to the
banker (4marks)
4. List out the advantages of ATM to the
customer.(4 marks)
5. Explain the advantages of ATM

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