1. ATM Banking in India: Problems
and Prospects
Presented By:
Ashish Saini
Dr. Ravindra Kumar Saini

2. INTRODUCTION
 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.

3.  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.)

4.  This design was similar in function of today‟s
machines.
 HSBC-Honkong and Shanghai Banking
Corporation introduce the first ATM in India
in 1987.

5. Table:1 Growth of ATMs in India
Year Number of ATM
2005-06 21,110
2006-07 25,247
2007-08 34,547
2008-09 43,651
2009-10 57,765
2010-11 76,871
Source :-Cyber Media Estimates Research in Banking 2010

6. Growth of ATM in India
90,000
80,000
70,000
60,000
50,000
40,000 Number of ATM
30,000
20,000
10,000
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Source:Report on Trend and Progress of Banking in India 2010-11

7. Growth of ATMs in the World
Year Number of ATM
2007 1,780,189
2008 1,912,178
2009 2,029,224
2010 2,154,970
2011 2,235,835
2012 2,407,775
2013 2,609,160
2014 2,848,190
Source: Global ATM Market and Forecasts to 2011 (Retail Banking Research)

8. 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)

9. Functions of ATM
 The 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.)

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

11. Problems with ATMs
Problems of ATMs categories in two category :
1) Problem faced by Customers:
 They didn‟t 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 didn‟t receive slip of account balance.
(contd.)

12.  Money transfer problem.
 Some time money stuck in machine at the time of
transaction.
 Some time machine didn‟t 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.

13. 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 Bank‟s site which affect whole
banking system.

14. Factor For Growth of ATM
 Make 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.
(contd.)

15.  It
reduce the bank „s work load.
 Accurate transaction.
 Can make payment for purchase anything.

16. Cost of Transaction with various mode of
Banking
Mode Cost Per Transaction (in Rs.)
Teller System 1
ATM 0.45
Phone 0.45
Debit Card 0.2
Internet 0.1
Source: IBA Bulletin special issue 2005

17. 1.2
1
0.8
0.6
Cost in Rupees
0.4
0.2
0
teller ATM Phone Debit Internet
Source: IBA Bulletin special issue 2005

18. Conclusion
 As 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.

19. Thank you