Department of Computer Science and Engineering (CSE)

E-Banking and Commerce

CSO-392

Topic : ATM

University Institute of Engineering (UIE) 1

 Department of Computer Science and Engineering (CSE)

“ATM”

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

INTRODUCTION OF ATM
Automated Teller Machines (ATMs) have gained eminence 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. As per survey by Bank net India, 95% people now prefer
this modern channel to traditional mode of banking. Almost 60%
people use an ATM at least once a week.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Cont…
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.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Cont…
The ATM market in India is not yet saturated. Though the
concentration of ATMs is greater in metros, the demand is
increasing for other cities and even rural areas. ATM's per
million people approximately is 33 units is very low. Experts
forecast that the growth rate (CAGR) is expected to grow 18
percent up by 2013. Banks going into a self service model
can have huge saving potential for banks and may also
increase the convenience for the customer .

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

HISTORY OF ATM
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. The main objective of introducing the ATM was
reducing customer’s time, lesser bank distribution cost and
enhancing the efficiency of banking institutes.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

How Do ATMs Work?

• An ATM is simply a data [1]
terminal with two input and
four output devices. Like
any other data terminal, the
ATM has to connect to, and
communicate through, a
host processor

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Cont…

• Leased-line machines connect directly to the host processor

through a four-wire, point-to-point, dedicated telephone line.

• Dial-up ATMs connect to the host processor through a

normal phone line using a modem and a toll-free number, or
through an Internet service provider using a local access
number dialed by modem.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Settlement Funds
• When a cardholder wants to do an ATM transaction, he or
she provides the necessary information by means of the
card reader and keypad.
• ATM forwards this information to the host processor, which
routes the transaction request to the cardholder's bank or
the institution that issued the card.
• If the cardholder is requesting cash, the host processor
causes an electronic funds transfer to take place from the
customer's bank account to the host processor's account.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Cont…
• Once the funds are transferred to the host processor's bank
account, the processor sends an approval code to the ATM
authorizing the machine to dispense the cash.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

LOCATION OF ATM
• ATMs are placed not only near or inside the premises of
banks, but also in locations such as shopping centers/malls,
airports, grocery stores, petrol/gas stations, restaurants, or
any place large numbers of people may gather.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Parts of ATM
• Card Reader
• Keypad
• Speaker
• Display Screen
• Receipt Printer
• Cash Dispenser

[2]

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Input Device
• Card reader - The card reader captures the account
information stored on the magnetic stripe on the back of an
ATM/debit or credit card. The host processor uses this
information to route the transaction to the cardholder's bank.

• Keypad - The keypad lets the cardholder tell the bank what
kind of transaction is required (cash withdrawal, balance
inquiry, etc.) and for what amount. Also, the bank requires the
cardholder's personal identification number (PIN) for
verification. Federal law requires that the PIN block be sent to
the host processor in encrypted form.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Output Device
• Speaker - The speaker provides the cardholder with auditory
feedback when a key is pressed.
• Display screen - The display screen prompts the cardholder
through each step of the transaction process. Leased-line
machines commonly use a monochrome or color CRT
(cathode ray tube) display. Dial-up machines commonly use a
monochrome or color LCD.
• Receipt printer - The receipt printer provides the cardholder
with a paper receipt of the transaction.
• Cash dispenser - The heart of an ATM is the safe and cash-
dispensing mechanism. The entire bottom portion of most
small ATMs is a safe that contains the cash.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

SECURITY
• Don't write down your PIN. If you must write it down, do
not store it in your wallet or purse.
• Make your PIN a series of letters or numbers that you can
easily remember, but that cannot easily be associated with
you personally.
• Avoid using birth dates, initials, house numbers or your
phone number.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

BENEFITS OF ATM
• Cash Withdrawal and Balance Enquiry

• Cash /Cheque Deposit

• Bill Payments

• Change ATM pin

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)
ATM for visually impaired

• There are ATMs that are

accessible to blind and
visually impaired people.
These machines are located
at kiosks rather than bank
drive-thrus. And the
keypads at ATMs are
equipped with Braille.

[3]

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

Guideline related to fraud prevention

• If you do not feel safe at any time, press the ATM cancel
button, remove your card and leave the area immediately.
• Minimize your time at the ATM.
• Make smart deposits.
• Avoid using ATMs at night.
• Be aware of your surroundings.

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

FAQ
• Explore how ATM works ??
• what the guidelines that should be taken to prevent from
frauds??

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

References:

• [1]
https://www.google.co.in/search?q=atm&biw=1366&bih=662&source=lnms&tbm=isch&sa=X&ve
d=0ahUKEwjVjunn94rRAhULNI8KHZWMBpwQ_AUIBygC#tbm=isch&q=how+atm+works&imgrc=
C62tsjYy7lJ_fM%3A
• [2]
https://www.google.co.in/imgres?imgurl=http%3A%2F%2Fimage.slidesharecdn.com%2Fsemina
ronatm-131107000653-phpapp01%2F95%2Fseminar-on-atm-15-
638.jpg%3Fcb%3D1383782898&imgrefurl=http%3A%2F%2Fwww.slideshare.net%2Fkhurda%2
Fseminar-on-
atm&docid=noIzUVHi34citM&tbnid=WJLikL1qLIIq6M%3A&vet=1&w=638&h=479&bih=662&biw
=1366&q=parts%20of%20atm%20machine&ved=0ahUKEwit0t_4-
IrRAhULRI8KHVgPAyEQMwggKAYwBg&iact=mrc&uact=8
• [3]
• https://www.google.co.in/imgres?imgurl=http%3A%2F%2Fatmspare.com%2Fuploadfile%2F201
3418231787433.jpg&imgrefurl=http%3A%2F%2Fatmspare.com%2Fproducts%2F70.html&docid
=Cs9mwEecBK4uPM&tbnid=20DOA5BuVSrRBM%3A&vet=1&w=606&h=606&bih=613&biw=136
6&q=parts%20of%20atm%20machine&ved=0ahUKEwjp_eL5-
orRAhUHMY8KHa1mDEY4yAEQMwhdKFswWw&iact=mrc&uact=8

University Institute of Engineering (UIE)

 Department of Computer Science and Engineering (CSE)

THANK YOU……..

University Institute of Engineering (UIE)