Anda di halaman 1dari 19

ATM Banking in India: Problems and Prospects

Presented By:
Ashish Saini Dr. Ravindra Kumar Saini


ATM (Automated Teller Machine) or a cash point is a computerized machine. ATMs plays a vital role in facilitating the banking services to banks as well as customers. ATM is the back bone of retail banking sector.

The idea of ATM machine developed simultaneous in Japan, Sweden, U.K and U.S.A. The first cash dispenser machine developed by Luther George Simjian in Feb.1963, which known as Bankograph. The second dispenser machine developed by John Shepherd Barron which matched PIN(Personal Identification Number). This machine known as DACS. The first modern ATM use in Dec. 1972 in UK.The IBM 2984 designed on the request of Lloyds Bank. (Contd.)

This design was similar in function of todays machines. HSBC-Honkong and Shanghai Banking Corporation introduce the first ATM in India in 1987.

Table:1 Growth of ATMs in India Year Number of ATM

2006-07 2007-08 2008-09 2009-10 2010-11

25,247 34,547 43,651 57,765 76,871

Source :-Cyber Media Estimates Research in Banking 2010

Growth of ATM in India

90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Number of ATM

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Source:Report on Trend and Progress of Banking in India 2010-11

Growth of ATMs in the World Year Number of ATM

2008 2009 2010 2011 2012 2013 2014

1,912,178 2,029,224 2,154,970 2,235,835 2,407,775 2,609,160 2,848,190

Source: Global ATM Market and Forecasts to 2011 (Retail Banking Research)

Growth of ATMs World wide

3,000,000 2,500,000 2,000,000 1,500,000

Number of ATM

1,000,000 500,000
0 2007 2008 2009 2010 2011 2012 2013 2014 Source: Global ATM Market and Forecasts to 2014 (Retail Banking Research)

Functions of ATM

concept of ATM is 24 7 365. Flexibility of using ATM of other banks i.e. we can make transaction from any ATM while our account not in same bank. Can recharge their mobile phone prepaid connection. Pay the bills. Money transfer from one account to another one. (contd.)


the balance of account at any time. Register their mobile number for account details. Deposit the cheques in account.

Problems with ATMs

Problems of ATMs categories in two category : 1) Problem faced by Customers: They didnt receive cash while the is account debited. Wrong insert the ATM card. This problem is more common with new ATM users who are not familiar with ATM machine. They didnt receive slip of account balance. (contd.)


transfer problem. Some time money stuck in machine at the time of transaction. Some time machine didnt accept ATM cards. Time out problem when the customer late for any step of processing. Customer face the problem when the process of bank is change. When cash not available.

2) Problem faced by Banks :

Theft money from ATMs.

Burglary of ATMs (including theft of entire ATMs).

System problem (including server down).

System failure (system crash or the software not work properly). Hack the Banks site which affect whole banking system.

Factor For Growth of ATM


transaction any time and more than one time in a day. Take less time to make a transaction than a teller in banks. Easy to use for people. Much reliable i.e. no body can access your account without your permission.


reduce the bank s work load. Accurate transaction. Can make payment for purchase anything.

Cost of Transaction with various mode of Banking

Mode Teller System ATM Phone Debit Card Internet Cost Per Transaction (in Rs.) 1 0.45 0.45 0.2 0.1

Source: IBA Bulletin special issue 2005

1.2 1 0.8 0.6 0.4 0.2 0 teller ATM Phone Debit Internet Source: IBA Bulletin special issue 2005

Cost in Rupees


the banking sector computerize day to day, and ATM have became a part of modern banking system. The banks in developing country adopt ATMs to improve their own internal process and also for increase facilities and services of their customers. Now customers become aware about this machine. The growth of ATM rapidly high at the world wide level also in India. This technology is simple, safe and secure and people feel satisfaction to use this.

Thank you