CHAPTER - VI

SUMMARY, CONCLUSIONS AND SUGGESTIONS

CHAPTER VI

SUMMARY, CONCLUSIONS AND SUGGESTIONS

This chapter is divided into three parts. Part A

deals with Summary, Part B deals with Conclusions, and

Part C deals with Suggestions. In addition to these three

parts scope for further research also has been given.

A. SUMMARY

6.0 Introduction

Banking is a conduit through which money flows to grease the wheels of business and

industry. Commercial banks muster most of the money from the general public and cater to

the short term needs of business and industry. In the process they render a number of services

to the customers. In the past all these services were rendered manually by the banks. But now

invention of computers and development of information technology have made possible to

render some of these services through machines. Rendering services through machines is less

costly to the banks and more convenient to the customers.

Banking has passed through different stages of development. Depending upon the

stage of development different aspects of banking have gained currency at different times.

Once any discussion on banking used to revolve round Unit Banking vs. Branch Banking,

Traditional Commercial Banking Vs. Mixed Banking, Social Control vs. Nationalisation etc.

Now most of the discussion on banking revolves round Actual Banking vs. Virtual Banking.

Commercial banks in India have been doing the traditional banking business (i.e.,

accepting deposits and lending them to people) for a long time. Even now the traditional

banking system accounts for more than 60 per cent of the banking operations in the rural and

semi-urban areas in the country. Computers have made a slow entry into Indian banking

industry after overcoming the resistance raised by the employees. Globalisation, Privatisation

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and Liberalisation have opened up frontiers to foreign banks. New private sector banks have

made an entry with a variety of new products and services. As a result competition increased

enormously. To with stand competition from the foreign and new private sector banks the

public sector and old private sector commercial banks too have speeded up the process of

computerisation, started offering new banking products and services, and started preferring

cost effective alternative delivery channels. As a result now-a-days any discussion on

banking revolves round ATM Banking, Internet Banking, and Mobile Banking etc.

Customer satisfaction is an important factor for retaining the existing customers and

to attract the new customers. Now customers expect more services from banks. They demand

round the clock service. Hence the banks should be more dynamic and use more efficient and

cost effective channels to provide services to the customers. Technology plays a key role in

enabling the people to fulfil their potential and to deliver great results for the business.

Information Technology is the real achievement of man’s intelligence. As banks look to

replace legacy systems for reducing costs and to free up employees to bring new products and

services to market faster, they depend on new infrastructure based on IT.

The liberalization brought in 1991 has swept the economic landscape of the country.

Banking sector is no exception. The changes in banking in the last decade are unparalleled

when compared to the entire period of banking history in India. Profitability, which remained

a taboo for bankers for years since independence, has become a buzzword today. Our banks

modeled on British banks, which erected awesome building to scare the public in the gab of

being a sentinel of public money, today go for boutique banking to be as close to public as

possible. Thus, competition fuelled by technology drives banking today.

It is becoming increasingly clear that "Technology" alone can make bankers sail

through the competition. Computerization of branches, introduction of cash management

products, remote access logins for corporates, mobile banking, internet banking and ATM

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banking are a few ways by which bankers use technology today to beat the competition.

People do most of their financial business through computers from home. They can pay bills,

buy stocks and maintain their budgets.

We can use smart cards for many small purchases to pay bills. Smart Cards may also

be used for recording medical data, shopping accounts and other miscellaneous information.

The smart card may contain a photograph and perhaps a fingerprint of the holder to keep

thieves from abusing the card.

The global scene of banking and financing is changing very fast. The liberalization

and globalization of Indian economy has challenged the entire banking system in India.

Competition has increased from new breed of private sector banks, foreign banks, and non

banking financial companies. Foreign Banks are using improved technology in their day-to-

day operations. Customers’ expectations have increased and started demanding quick,

efficient and quality service. Need for achieving the international standards has arisen. Banks

in India, with a view to competing with their foreign counterparts, have decided to

computerize their operations. "Improvement in Customer Service" has become the buzzword

in the Indian Banking. Every effort, including computerization of banking operations, is

being made today to improve customer service.

Reserve Bank of India had to constitute a number of committees for making

recommendations on various aspects relating to banking. Of them, three committees

constitute under the chairmanship of Dr. C. Rangarajan,, Shri W.F.Saraf and

Smt. K.S. Shere have analyzed the topic of computerization in banking industry and

suggested changes which are to be introduced in various acts and provisions which govern

banking industry. Till 1980s, Indian Banks have not made any substantial progress in

modernizing their operations, particularly in the area of computer networking. The first

attempt in this direction was made in the year 1983, when a Committee on Computerization

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and Mechanization in Banks headed by Dr. C. Rangarajan was set up. The Committee had

recommended a three-tier approach to computerization in banks. The three tiers defined were

• Branches

• Regional Offices / Zonal Offices, and

• Head Office / Central Office.

Initially, emphasis was laid on the transactions processed at the branch level. Systems

were introduced in selected bank branches in urban and metropolitan areas. The progress of

mechanization and computerization of branches was very slow. Hence, another committee on

computerization in banks was constituted in September, 1988 under the Chairmanship of

Dr. C. Rangarajan to take stock of the situation and to draw up a perspective plan for

computerization of the Indian Banking Industry for the period 1990-1994. The committee had

recommended for moving away from the present system of stand-alone type of

computerization and laid great emphasis on setting up of intra/inter-branch and inter-bank

connectivity. The committee also recommended for computerization of all operations at the

branches. The committee formulated certain guidelines for computerization of branches.

Banks may partly or fully computerize / mechanize some / all operations at branches

specified below:

(a) Branches located in Urban, Metropolitan centres and those falling within the

urban agglomeration and peripheral territories which are treated as main centers for the

purpose of HRA / CCA with average daily number of vouchers of 750 or more per day

calculated on an average of 52 preceding weeks.

(b) Branches not covered by above said criterion but categorized as specialized

branches carrying out special functions such as Industrial Finance / Corporate Banking,

Foreign Exchange, Overseas Banking, Non-resident Indian Banking, Credit Card

Transactions, Merchant Banking, Capital Market etc.

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(c) Non-business branches / offices carrying out “Special Functions” such as

clearing transactions, regional collections, drafts payable, central accounting etc.

(d) Offices which are established as spin off or extension counter of parent

branches which are otherwise eligible branches.

Every Bank, every year, may partly or fully computerize / mechanize its branches.

The second committee on computerization in Banks set the tone in Indian Banking

Industry, for computerization of operations at branches. Today, there are a number of banks,

which have fully computerized their important branches covering about 80 to 85 per cent of

their total business. This has resulted in improvement in the customer service to certain extent

but at the same time has created certain problems like redeployment of staff and branch

profitability on account of huge capital expenditure etc. However, banks are making efforts

for solving these problems.

ATMs in India are of recent origin. More and more people are getting themselves

acquainted with the ATMs day by day. They are becoming a part and parcel of the life of the

people. The utilities of the ATMs are also increasing day by day. Not much research has been

carried out and not much literature is available on the subject. Of the literature available on

the subject many are general and news paper articles. Any how an effort has been made to

review the available literature on the subject. The review has unraveled the need for

conducting a systematic study on alternate delivery channels used in the banking industry

especially on the working of Automated Teller Machines (ATMs) used by the commercial

banks in the country.

Electronics and information technologies are rapidly changing the banking industry.

In the world of banking, the developments in IT had an enormous effect on flexible payment

methods and more user-friendly banking services. The number of transactions and the

amounts involved have increased enormously during the last decade. This study describes

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whether the customers are satisfied with the alternate delivery channel of Automated Teller

Machine (ATM) introduced by the Commercial Banks in banking sector.

6.1 Objectives of the Study

Objectives of the study are:

a) To study the birth, growth and present status of ATM banking in the country.

b) To study the banking exposure and ATM usage by the bank customers. ATM

usage includes the purposes, for which ATMs are used, and frequency and

timings of their usage.

c) To study the problems faced by the customers in using the Automated Teller

Machines.

d) To suggest the measures to be taken by different parties for improving the

utility, usage and cost effectiveness of ATMs by solving the problems

associated with their usage.

6.2 Sample and Data Collection

As it is not possible to cover either entire country or a state the study has been

geographically limited to one district. Because of familiarity and convenience the researcher

has purposefully selected Chittoor District in Andhra Pradesh. As it is also not possible to

select all the banks and as the researcher owes his allegiance to State Bank of India he has

selected that bank for the purpose of his study. State Bank of India is a Public Sector bank

with a large number of branches, with seven subsidiaries and a broad spectrum of customer

base. Hence all the customers of State Bank of India in Chittoor district of Andhra Pradesh

form the universe. As it is neither possible nor necessary to survey all the customers, a

sample of 300 customers cum ATM users of State Bank of India have been selected by using

multi stage random sampling method. In the first stage three towns - Tirupati, Chittoor, and

Srikalahasti have been selected. In the second stage out of 63 State Bank of India Group

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ATMs located in these three towns 30 ATMs have been selected. The ATMs were so chosen

so as to equally cover the commercial and residential areas in these three towns. From among

the users of these 30 ATMs 10 customers per ATM have been selected at random in the third

and final stage. Out of 300 sample customers, 200 ATM Customers have been chosen from

Tirupati town and the remaining 100 ATM customers have been selected from Chittoor and

Srikalahasti towns.

The required primary data have been collected from the selected customers through a

questionnaire consisting of structured and unstructured questions/statements. The

questionnaire used in the survey has been given in Appendix “A”. In addition to that,

periodical discussions were held with the executives of the bank and Automated Teller

Machine staff of various banks. Discussions were also held with senior level managers like

Regional Managers and General Managers (ATM Switch Centre) of different banks (those

who are executing and operating new technology). The relevant/required secondary data were

collected from publications of the Reserve Bank of India (RBI), (such as, RBI annual reports,

RBI Reports on Trends in Currency and Finance, RBI occasional papers), Statistical Profile

of Indian Banks’ Association (IBA), the periodicals like Economic & Political Weekly, Bank

Economists Conferences (BECON) Volumes and other research publications. The literature

on economics of Technology used in Banking Industry was collected from publications like

Indian Banks’ Association (IBA), Mumbai; Indian Institute of Banking and Finance (IIBF),

Mumbai; published and unpublished records from the Bankers’ Training College, Reserve

Bank of India, Mumbai; and National Institute of Bank Management (NIBM), Pune. The

study is useful in knowing the problems and prospects of ATMs in the district and helps in

improving ATM management by the banks.

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B. CONCLUSIONS

6.3 Conclusions

Information Technology has swept the Globe. It has positive influence on bank

management in general and management of delivery channels in particular. Electronic and

net based facilities like ATMs, Net Banking, and Mobile Banking have given a whole new

face to the banking business. Banks, allover the world, have realized the need for adapting

themselves to the changes that are taking place in the modus operandi of delivering the

services to the customers. Maintenance of customer loyalty forces the banks to constantly

seek innovative ways and means to give convenience to customers. Foreign and new private

sector banks have led the way for automation of financial services and other banks have

followed. The top managements of the banks are viewing information technology as a

business enabler and as a vital part of strategic bank management.

All over the world, about a million ATMs have been installed by different banks.

ATMs are becoming more and more popular because of it merits. In India too it is felt that

automation of the banking transactions through ATMs will save the customers from going

through the cumbersome time taking paper work and procedures. In effect the ATMs could

usher in a revolution in customer convenience. In future ATMs can "work as small branches"

and the Banks can save a lot of expenditure on account of infrastructure and wages.

India's population has now crossed the 1.3 billion mark, while the estimated number

of ATMs in India is a little over 35,000 (by 2009) i.e., a little over 1 ATM per million

population. ATM services in India are yet to find a firm ground. But at the same time this low

level of penetration offers a great potential for expansion of ATM services in India.

Increasing acceptability of ATMs among banks and customers as a mode of expansion and

improving responsiveness is being matched by the demand for ATM services created by

growing middle class incomes.

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As stated earlier in the first chapter 300 customers of State Bank of India have been

selected for the purpose of the study. The data have been collected from them through a

questionnaire. The data so collected have been analysed using appropriate statistical measures

and have been presented in the form of tables and diagrams along with the analysis in chapter

five. In addition to that the information obtained from the respondents through observation

and oral interview methods also has been given in the same chapter. On the basis of the

analysis given in that chapter the following conclusions can be drawn.

a) Bank Products and Services Used by the Respondents: Many of the

selected customers/ATM users of the bank mostly use savings bank and current account

products. ATMs are most suitable for transactions related to these products.

b) Main Reasons for Visiting the Bank Branch: Even now a great majority of

the customers visit the bank for withdrawing cash, for making deposits and for balance

enquiry, i.e., for receiving the services which an ATM can provide.

c) Frequency of the Banking Transactions: A majority of the respondents

(51.67 per cent) transact bank business once, twice or trice in a month.

d) Activities Performed by the Respondents through Different Means during

the Last Six Months: During the last six months:

• All the respondents have ‘checked the account balance’ during the last six

months. Of them 32.67 per cent of the respondents have checked balances of

their account by going to branch, 40.33 per cent of the respondents have

checked the balance at the ATM, 20.67 per cent of the respondents have

checked in the balance online, and the remaining 6.33 per cent of the

respondents have done the same thing through call centre.

• During the last six months no respondent has ordered for the transfer of funds

to one of his own accounts.

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• As many as 69.33 per cent of the respondents have ordered for funds transfer

to third party accounts during the six months period by actually going to bank

branch, 3.33 per cent of the respondents did the same thing through ATM, and

the remaining 27.34 per cent of the respondents have preferred transfer of

funds online. It seems for transferring funds from one account to another

account online method is more popular after the conventional method.

• As many as 91 per cent of the respondents have ordered for drafts by actually

going to bank branch, and the remaining nine per cent of the respondents have

ordered for draft or banker’s cheque online.

• As many as 70 per cent of the respondents have paid utility bills by actually

going to bank branch, only 6.67 per cent of the respondents have preferred an

ATM for this purpose, and the remaining 23.33 per cent of the respondents

have done it online.

• A majority (59.33 per cent) of the respondents have visited the branch for

reconciling the accounts or for getting account statement, 13.33 per cent of the

respondents have preferred ATM for the purpose, 20.67 per cent of the

respondents have made use of online facility for the purpose, and the

remaining 6.67 per cent of the respondents have used mobile banking for the

purpose.

• A great majority of the respondents (92.67 per cent) had to visit the bank and

the remaining 7.33 per cent of the respondents did it online.

• As many as 87.33 per cent of the respondents have visited the branch to

operate demat accounts, and the remaining 12.67 per cent of the respondents

have done it online.

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• It seems for trading in stocks online method is more popular than the

conventional method of going to branch. As low as 19.33 per cent of the

respondents have traded in stocks by actually going to branch whereas, as

many as 80.67 per cent of the respondents, have traded stocks online.

• As many as 82.67 per cent of the respondents have visited the branch during

the last six months period for making investments, and the remaining 17.33

per cent of the respondents have made use of online facility for the purpose.

The above data show that most of the transactions are still done through branches

instead of alternate delivery channels like ATM Banking, Internet Banking, Mobile Banking

and Call Centres. Hence there is a lot of scope to divert these customers to alternate banking

channels. Educating the customers through road shows, publicity through print and other

media, customer relation / service programmes is necessary to increase the usage of other

banking channels

6.4 Conclusions Relating to ATM Usage

a) Use of ATM Banking Service is in Growth Phase: More than one-half

(51.33 per cent) of the respondents have been using the ATM for less than one year, 30.67

per cent of the respondents have the experience of using ATM for the last one to two years,

11.67 per cent of the respondents have been using the ATM for the last two to three years,

and the remaining 7.33 per cent of the respondents have been using the ATM for more than

three years. The survey results show that this service/product (ATM services) is still in the

growth phase. As per basic Marketing principle, any product or service is in growth phase

should be supplemented with heavy publicity.

b) Reasons for not using ATM Banking: ‘Convenience in counter service’,

‘lack of opportunity to contact directly the bank staff in case of need’ and Tack of

knowledge’ are the reasons for not using ATMs as per the opinion of a majority of the

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respondents. To overcome these problems banks should appoint a person who takes care of

all the ATM related issues. This caretaker should also be trained enough to handle customer

problems and educate them if required.

c) Reason for choosing a particular bank for ATM banking service: The

most popular reason for choosing the bank for availing ATM banking service can be taken as

location of the bank as more than 50 per cent of the respondents have chosen this. The next

most popular reason for choosing a bank for the purpose appears to be the quality of service

offered by the bank at ATM locations as 29.67 per cent of the respondents have chosen this.

The third most popular reason for choosing the bank for ATM banking service is the

“integrated value-added services or other online services/provided by the bank” (13.67 per

cent). The least popular reason is having a traditional bank account with the bank (5.33 per

cent).

d) Advantages of ATM Banking as perceived by the respondents: Round the

clock availability of the services (48.67 per cent), convenience (29.33 per cent), “time

saving” (18.00 per cent) and “better control over the account” (4.00 per cent) are the

advantages in that order as perceived by the respondents. Thereby the bank should ensure

availability of ATM facility all the time i.e., 24 hours a day and 7 days a week.

e) ATM Banking will replace traditional banking services: Most of the

customers believe that ATM banking will replace the traditional banking. Since most of the

customers believe that ATMs will replace the traditional banking services, the banks can

approach vendors for developing more and more functionalities in ATMs and satisfy the

customer needs.

f) Knowledge on the services available from ATM Banking: In addition to

traditional function of cash dispensing in predetermined denominations the ATMs

discharge/render several other functions/services. The other functions/services rendered by

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the ATMs are: deposit currency recognition, acceptance, and recycling; paying routine bills,

fees, and taxes (utilities, phone bills, social security, legal fees, taxes, etc.); printing bank

statements; updating passbooks; loading monetary value into stored value cards; sale of

postage stamps; sale of lottery tickets of reputed firms; issue of train tickets; sale of concert

tickets; sale of shopping mall gift certificates; games and promotional features; receiving

donations to charities; issue of cheque books; and adding pre-paid cell phone credit. Some of

the functions are not available in ATMs in India; and some of the functionalities are available

in certain places and in certain bank ATMs only. Even if they are available many customers

do not have thorough or complete knowledge of the services rendered by the bank through

the ATMs.

g) To reduce the rush at branches for the services which are otherwise possible

through ATMs and to reduce the cost of rendering those services the banks can introduce as

many ATM functions as possible and educate the customers on the availability and usage of

those services at the ATMs as much as possible. Local languages along with English may be

used for the purpose. Also provide Grahak Mitra and Grahak Dost services on the ATMs.

h) Other ATMs used by the respondents: As many as 73.33 per cent of the

respondents use the ATMs of the other public sector banks and the remaining 26.67 per cent

of the respondents make use of ATMs of some other private sector banks. None of the

respondents are using the ATMs of foreign banks. Non-existence or low popularity of foreign

banks in the area may be the reason for none of the respondents using ATMs of foreign

banks. That means many of the customers prefer and use ATMs of public sector banks.

Hence there is a need for further increasing and strengthening the network of public sector

bank ATMs.

i) Location of the ATMs used mostly: Approximately 75 per cent of the

respondents mostly use the ATMs near the bank branches where they have accounts. That is

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most of the customers are mostly using onsite ATMs. The reason for this may be

establishment and availability of more number of onsite ATMs or the custom and

convenience in using the onsite ATMs for the customers. Onsite ATMs are necessary and

convenient both to the bankers and the customers. But at the same time bankers should also

carefully consider and select the offsite locations for the establishment of ATMs. An

understanding with other banks regarding the usage of ATMs helps the bank in reaching the

customers at their doorsteps. ATMs are advantageous to both the banker and the customer as

they provide easy access, reduce pressure on the bank, and the customers get themselves

distributed over different ATMs in the town.

j) Awareness regarding locations of the ATM centres in the town: As many

as 48.67 per cent of the customers are not aware of the different ATM sites in the town.

Thereby a few ATMs are excessively used and others are not used to their foil capacity. To

avoid this problem and to make evenly used all the ATMs in the town the bank should

display a list of ATMs in every ATM centre. From time to time, the new ATM locations and

shifting of old locations are to be published in local newspapers to create awareness.

Pamphlets containing information relating ATM locations can also be distributed among the

customers. These initiatives can improve the customer service by reducing the rush at a few

ATMs and increasing the hit rate at other ATMs. About 21 per cent of the respondents know

where the other ATMs are located but not using them.

k) ATM usage pattern: Cash replenishment timings depend on withdrawal

pattern. Hence withdrawal pattern at different ATMs should be observed and cash

replenishment timings should be decided. Withdrawal patterns vary from ATM to ATM

based on its location i.e. Industrial Area ATM, Residential Area ATM, and Public Place

ATM etc. Withdrawal pattern also depends on the conveniences and inconveniences of the

users. ATMs where hits are more during late hours, banks should also plan for providing

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security to avoid theft. Banks can even provide insurance coverage for customers

withdrawing cash during late hours to increase the customer confidence in ATM banking.

Survey results presented in chapter five show that about 31 per cent of the respondents

generally use ATM from 5.00 pm to 8.00 p.m., about 25 per cent of the respondents use ATM

from 10.00 a.m. to 2.00 p.m., about 21 per cent of the respondents generally use ATMs

between 2.00 p.m. and 5.00 p.m., about nine per cent of the respondents generally use ATM

between 10.00 p.m. and 8.00 p.m. and the remaining 6.00 per cent of the respondents

generally use ATMs from 8.00 to 10.00 a.m.

l) ATM Banking services used by the customers: All the respondents selected

for the purpose of the study used the ATM for cash withdrawal. In addition, 11.67 per cent of

the respondents used the ATMs to know the balance in their accounts, 21.33 per cent of the

respondents used the ATMs to get mini statements of their accounts, 4.33 per cent of the

respondents used the ATMs for transfer of funds and 6.00 per cent of the respondents used

the ATMs for functions like donating the amounts to the temples. This shows that a large

proportion of ATM users are comfortable withdrawing cash. These customers should be

educated so as to increase the usage of remaining ATM services.

m) Amount withdrawn normally from the ATM: Slightly more than 50 per

cent of the respondents generally withdraw less than Rs. 1,000 from the ATM each time.

More than 70 per cent of the respondents generally withdraw less than Rs.3,000 each time.

That is less than 30 per cent of the respondents draw more than Rs, 3,000 each time.

Depending upon the volume of withdrawals cash replenishments have to be planned.

n) Comfort in using the ATM for depositing cash: An overwhelming majority

of the respondents (94 per cent) either do no feel comfortable or not willing to deposit cash

through ATMs. Only six per cent of the respondents are comfortable and willing to use ATM

for depositing cash. Most of the respondents say that they are employees and that their

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salaries are directly credited to their accounts so they mostly use ATMs for withdrawing cash

but not for depositing cash. Some others feel that it is better to deposit cash through the

counter rather than through the ATM. A few expressed that they do not know how to use the

ATM for depositing cash. Some businessmen complained that it takes more time for the

money to be credited in their account than had they deposited the same through the branch.

Other reasons for not preferring ATMs for depositing cash are fear of insecurity, restrictions

on the denominations, number of notes etc. To increase this functionality banks should build

additional security features in ATMs for depositing cash and should remove restrictions

imposed at present on deposits through this channel. A majority of those who prefer to use

ATMs for depositing cash use them for the purpose occasionally only. The respondents use

the bank teller whenever the amount to be deposited is too high. Some people prefer to use

the ATM only when they have to deposit cash after banking hours. Many people deposit less

than Rs. 5,000 through ATMs.

o) Problems Faced by the Respondents with the ATMs: As many as 82.33 per

cent of the respondents have faced problems with ATMs. The problems faced by the

customers are: ATMs running out of cash or delays in cash replenishments, ATMs going out

of order, loss of connectivity or network problems, debiting the account without actually

disbursing cash, debiting the account twice for single withdrawal, cash jams and swallowing

ATM cards. All these issues are to be addressed by the banks or else the very purpose of

ATM banking gets defeated. To overcome these problems maintain an IP phone, which runs

on ATM network, in every ATM centre; run a call centre to receive these calls and take

immediate action. Also send text messages to the mobiles of branch manager and cash

replenishment teams when cash in the ATM is about to exhaust. Customer Relation

Programmes can also help in finding out solutions to the problems faced by the customers.

About 24 per cent of the respondents have faced the problem of ATM going out of order, 26

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per cent of the respondents have faced the problem of ATM running out of cash, 9 per cent of

the respondents have faced connectivity problem, 18 per cent of the respondents have

experienced cash jams, and the remaining 22.67 per cent of the respondents have experienced

the other problems.

Reasons which come under others category can be:

• Card getting swallowed or locked up: This can be attributed to reasons like

inputting the wrong pin number, inputting the invalid card, and inputting the card

which is inactive for a long time. These problems can be attributed to the customers.

• The second problem is debiting the customer’s account without actually

dispensing with cash. It is a serious failure on the part of the bank, which has to be

addressed immediately. This problem is much more serious than the ATM not

working and needs quick and prompt action on the part of the bank. The customers

who face this problem get very much dissatisfied with the services of the bank and it

leads to negative word-of-mouth publicity.

r) Customer Complaints: Whenever a problem arises with the ATM a majority of

the respondents (57.33 per cent) say that they contact the toll free number, 23 per cent of the

respondents contact the channel manager and 19.67 per cent of the respondents prefer to

lodge a complaint with the branch concerned. Some of the customers expressed that toll free

number remains busy for most of the time and gets disconnected even before getting into

contact with care-executive. Moreover no local language is used. Respondents also

complained that remaining channels are also equally ineffective in arriving at solutions to the

problems faced by them. No one is ready to listen to customers’ problems when they

complain in the branch concerned and the channel manager’s mobile remains often in off

mode.

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s) Usage of ATM card for other purposes: A majority of the customers are using

the ATM card for the purposes other than for withdrawing cash. As many as 60.33 per cent of

the respondents use their ATM cards at point of sales, a little over 30 per cent of the

respondents use the cards for railway booking, nine per cent of the respondents use them for

other purposes and the remaining 29.33 per cent of the respondents have not at used the ATM

card for other purposes.

t) Willingness to pay for ATM Banking services: Most of the customers are not

interested in paying service charges for using ATMs. Since banks are already getting cost

benefit because of reduction in transaction costs, they shouldn’t impose any charges in near

future as this might lead to an underutilization of this channel and consequently customers

would flood branches.

u) Need for introducing other functions: All the ATMs in the Tirupati region do not

have additional functionalities like movie bookings, airline bookings, selling train tickets,

paying utility bills etc., due to which most of the customers feel that ATMs are no more than

cash dispensers.

v) It seems ATM usage is less popular among businessmen. This may be due to high

frequency and magnitude of transactions. Businessmen generally turn out to be unattractive

ATM users to banks.

C. SUGGESTIONS

6.5 Suggestions-General

On the basis of the conclusions drawn following suggestions can be made for

improving the acceptability and functioning of the ATMs.

(a) Location: Due care should be taken in deciding location of ATMs. A cost-benefit

analysis of ATMs should be undertaken on a regular basis. Location of all ATMs having low

hit rates should be reviewed and have to be recommended for relocation. Avoid locating

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ATMs near wine shops as some of the customers feel embarrassed to go to such ATMs.

There is also possibility of antisocial elements gathering at the wine shops. While selecting

the site for ATM, locations that are less prone to crime must be preferred. The location of the

next nearest ATM of the bank should be accessible to the customer within a reasonable

radius.

(b) Boards: Indicators like lollipop boards, fluorescent glow signboards are to be

placed on the main roads indicating the location of ATMs. Bank ATM signboards should be

placed on the pillars / boards outside petrol pumps that display the various products / services

available at the petrol pump. ATM Sign Boards on the booths should be lighted up and

should be clearly visible from outside. Display boards stating that, ‘Occupying an ATM

booth for any purpose other than for using the ATM Machine is a cognizable offence and

anyone found to be doing so could be proceeded against by the Bank’ have to be placed at the

unmanned ATM sites to discourage people from unauthorized entry.

(c) IP Phone: Install mini-version of an IP Phone connected to a Call Centre at every

ATM so as to enable the customer to call up in case of complaints.

(d) Outsourcing: Maintenance of ATM, cash replenishment, checking and repairing

of ATM, checking lights, maintenance of ACs, and replenishment of publicity material and

consumables etc. can be outsourced and centralized for offsite ATMs. If outsourcing arouses

an industrial relations issue, banks should consider putting all offsite ATMs under one

department or cell for replenishing all the cash, publicity material, paper rolls, and

undertaking repairs to ATMs.

(e) Currency: ATM fit notes are to be replenished in ATMs especially the offsite

ones. Cash Administration Cell could ensure this at offsite ATMs.

(f) Channel Manager: Offsite ATMs should be controlled and monitored centrally

by Channel Managers but not by the-bank branches.

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(g) Migration: The bank branch staff must be motivated to actively participate in

facilitating migration of customers to alternate delivery channels i.e., ATMs.

(h) All Weather ATMs: The Commercial Banks should experiment with

indigenously made all-weather ATMs, which could work without ACs. Off site ATMs can

then be placed like vending machines in well-frequented places like shopping centers,

railway stations, airports etc.

(i) Provide Customer Feedback Forms: Customer feedback forms should be

provided at the ATM centres and the customers should be asked to drop them in a

complaints and suggestions box, these fonns should be looked at by a responsible person of

the bank and necessary action should be taken. Once proper action is taken customers

concerned should be informed.

(j) Point of Sale: Wide acceptance of ATM debit cards by merchants must be ensured

at Point of Sale (POS). Banks can give ‘Point of Sales Machines’ to the stores at free of cost

in return for the business provided by them. This helps banks to improve their SME business

portfolio and also cheap CASA deposits. Banks should consider giving incentives and try to

motivate their customers towards cash less banking. Banks should introduce cash back offers

if customers use their debit cards at Point of Sales. This helps in reducing the number of

replenishments at ATM centres.

(k) Security and Proximity: The main hindrances for the growth of ATM banking

are Security and Proximity. To improve the security, banks can go for biometric and iris

recognition equipped ATMs and to do away with the problems related to Proximity they

should install as many ATMs as possible. With GOI removing the excise duty on ATMs,

They can even procure ATM machines at cheaper rates.

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(1) Bank should ensure that:

• Machines are in working condition,

• Machines do not run out of cash (especially on the weekends and on holidays),

• Machines do not show wrong balances in customers’ accounts,

• Printer is in working condition and transaction advices and transaction details

are printed,

• Good quality notes are used to avoid cash jams,

• ATMs are not used for distributing fake notes,

• ATMs are located at right places,

• Adequate security is provided at the ATMs,

• Proper lighting is provided at the ATMs,

• Offsite ATMs are not used as places to sleep, to sit and chat, to play cards and

to do such untoward activities,

• Help line numbers are displayed prominently at the ATM centres,

• A list of ATMs located nearby is displayed inside the ATM booths,

• A board explaining how the ATM is to be operated is installed in the ATM

booth,

(m) Introduce as many Functions as Possible: Customers want additional

functionalities like Cash Deposit, Cheque Deposit, request for issue of Draft/TDR/Cheque

Book and payment of utility bills through ATMs. They also want facility of passbook

printing through ATMs or alternatively a statement of account consisting of the last 10

transactions.

(n) Awareness / Training: Each and every staff member should be made aware of

the basics regarding functioning of ATMs / the merits of alternative delivery channels and

enough working knowledge for to be able to answer the questions raised by the customers.

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Training the brank staff on ATM usage at Staff Training Centres of the Commercial Banks is

necessary. As the training involves technical inputs, it would equip the staff well thus helping

in solving operational problems and reducing dependence on vendor besides saving costs.

(o) Grievance Redressal: Clear-cut grievance redressal system and chain of

command should be established in the organization for solving the problems faced by

branches in the maintenance of ATMs. Seminars/meetings should be conducted to the

officials dealing with ATMs periodically for sorting out operational issues and to solve the

customer problems if any. Frequently occurring ATM related problems and solutions should

be listed in a site, which could be accessed by the branches in their bank web sites. There is a

need for setting up a 24 x 7 help-line for branches at the ITS Dept, at all levels in the bank

organization/ATM Switch Centre. All e-mails/telephone calls received from the

branches/customers should be attended to immediately. Adequate staff should be appointed at

the ATM Switch Centre for dealing with the problems reported by the branches and the

customers across the country within 24 hours.

(p) Maintenance: Delays in replenishment of any items like journal log etc. by ATM

vendors should be avoided. ATM vendors should also be made responsible for time lag in

rectification of hardware and software problems and for escalation / solving of the problem.

Penalties should be imposed for delays.

(q) High Net-Worth Customers: Branches should possess pre printed ATM cards

and PIN Mailers (Welcome Kits) for issuing instantly to high net worth individuals at the

time of opening an account. Co-branded cards can be issued to high net worth customers like

Doctors, Traders, Medicine retailers so as to popularize the cards among various segments of

the society thereby ensuring optimum utilization of cards.

(r) Hot Listing: Hot listing of cards through the help line should be explored.

Thereby the customer confidence level will increase in the usage of ATMs.

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(s) Teller Counters: When ATMs are established, use of Manual Teller counters by

customers may be discouraged so as to increase number of hits and cultivate the habit of

using ATM among customers.

(t) Sharing Network: In case of lower number of hits, the system may be leased out

to the other Commercial Banks i.e., sharing network of other Bank ATMs.

(u) Publicity: Wider publicity should be given to ATMs through hoarding, slides in

the cinema halls, dish/cable TV networks, customer meets etc. Information relating to ATM

locations can be provided at appropriate places on the cheque books, pass books, drafts, on

the brochures prepared to publicize bank products etc. By doing so, cost of advertisement can

be minimized. Publicity helps in increasing the use of ATMs.

(v) Young Customers: Acceptance of ATM cards is more among youngsters than the

old people; hence the banks should concentrate on popularizing among the youngsters to

increase ATM utilization.

(w) Ambience: Ambience is one of the important factors in attracting the customers

to the ATM fold. The poor ambience results in low utilization of ATM.

(x) Anywhere Banking: Networking of ATMs, not only increases "anywhere

banking" facility to the customers, but also reduces strain on busiest ATMs and increases the

customer base of the Commercial Banks.

(y) Advertisements: Distribution of third party products and services, coupon

schemes, advertising on the screen and at the site, distribution of leaflets, utility payments

and ticket distribution are some of the ways in which additional revenue can be generated

from ATMs.

(z) Redeployment of Staff: At branches where ATMs are established, excess staff

should be redeployed and a fresh manpower planning must be taken up. The very purpose of

the ATM gets defeated if no such optimization steps are taken. ATM must be looked upon

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not as an ornamental piece but as a tool for business development and growth. In addition to

this, a cost benefit analysis must be made at every ATM branch to gauge the effect of ATM.

And this surplus staff can be better utilized for cash replenishment at ATMs and to solve the

customer problems etc., thereby it improves the customer service of the commercial banks in

particular ATM card holders.

(aa) The reason for not using the ATM to deposit cash is due to lack of knowledge i.e.

they do not know how to operate the ATM for this purpose. An important observation here is

that all the people who used the ATM to deposit cash are comfortable with it. They do not

have any problems or suspicion over authenticity of the operations. They did not have any

problem regarding the security of their money and trusted the bank to do their work

efficiently and reliably. The survey shows that all the people who are comfortable in

depositing cash through the ATM have actually used the ATM for depositing cash. The

commercial banks should popularize this functionality widely.

(ab) In-spite of banks providing all the major products and services, one thing that has

been noticed is, people who are using the ATM card are only familiar with the common

functions for which the banks should provide Ml time assistance to customers and should

make them familiarize with the banking products and services, and see to it that they realize

the importance and convenience of these services. The general function for which the ATM

card is used is for withdrawing cash. Most of the customers are either not aware of or not

familiar with other functions, products or services provided by the banks through their

ATMs. Therefore, the banks should initiate and take necessary steps for creating awareness

among the general public about the functions, products and/or services rendered by the banks

through their ATMs, and make them comfortable in using them.

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(ac) The banks should develop the strategy of issuing letters or notices to their

customers whenever they introduce a new feature in the form of products and services so that

the customers are regularly in touch with the current happenings, new products and services.

(ad) As the survey clearly shows a wide disparity between male and female

customers, there is scope for banks to advertise and bring in the awareness about the ease

with which banking can be done through these channels among female customers. Initiatives

like using Lady Brand ambassadors for advertising and creating awareness can be used by

commercial banks. By doing thisi>enefits of technology can be shared equally by customers

of both the genders.

(ae) Based on the results of the survey we can conclude that the banks have a large

scope to attract people below 25 years which mainly comprises of students and fresh

employees to use this banking channel more. They can also target senior citizens who

generally have their pension accounts in the banks. If these transactions are diverted to ATM

channels the load on branches can be considerably reduced. By educating the senior citizens

about the high security, convenience (24/7) and additional functionalities involved in

transacting through this Banking Channel, ATM Usage by them can be increased. These

awareness creating initiatives can be conducted during the last and first week of every month

when the branch visits by Senior Citizens would be maximum. They can be done with the

assistance of Grahak Mitra and Grahak Dost (employee of the Bank Branch).

(af) The survey clearly shows that people who are not well educated do not prefer this

mode of banking. The reasons can be anything from lack of awareness, inability to operate

ATMs or fear psychosis about the safety involved in this mode. Banks should create

awareness on ATM operation, safety and security of this mode of banking by organizing

public demos, by installing prototype ATMs in the branch premises for practice purposes and

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by advertising in local languages. Banks were instructed by RBI and GOI to improve the

ATM usage by all types of customers.

(ag) With regard to students, banks are reluctant to open accounts because their

account balance is very low and business, processing charge may not look economically

attractive for the banks. Thereby they are neglecting two very important sections of society,

which can be tapped in view of the following grounds.

• With respect to Students, Promoting ATM banking channel would reduce the

transaction costs and make this segment more economically attractive.

• Advantages by improving the ATM usage of businessmen can be reduction in

transactions through cheques (increase in ATM transfer of funds).

• If higher income group customers can be moved to other channels like internet

banking, credit/debit cards, the rush at the ATM centres can be reduced. The

banks can promote internet banking channel at the ATM centres itself.

(ah) The Bank should provide additional facilities in the ATMs such as:

• Deposit of Cash through ATM by providing additional functionality in the ATM.

Deposit of Cheque through ATM by installing drop boxes in ATM centres.

• More no. of previous transactions on mini statements to reduce the balance

enquiries at branches. Thereby the branch operational cost will reduce drastically

and customer can satisfy his banking needs in the nearest possible ATM.

(al) Most of the customers use ATMs to withdraw money monthly once and pay their

utility bills like electricity, telephone, mobile and other payment obligations. These payments

are a regular pattern every month. Due to this, the rush at ATM sites generally increases

during month ends, which cause long queues and cash out situations at ATMs. This situation

can be looked at as a business opportunity by the banks. They can introduce online / ATM

bill payment systems and collect fees per every payment made. This also reduces the number

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of times cash is replenished during month ends. There might also be a situation where lack of

proximity to the ATM centre may force the customer to withdraw the entire money at once.

This influences the bank negatively as there would be a reduction in CASA deposits. To

overcome this situation, banks should aim to increase their ATM network.

(aj) The most important reason for choosing a particular bank ATM is Bank Location

and next one is excellent service offered by the bank at ATM locations. So Banks should

focus more on these two areas to increase their customer base. This further helps the

commercial banks in completing the transition from traditional banking to ATM banking.

(ak) From this it can be understood that most of the customers use ATM banking

because it is available all the time. Thereby the bank should ensure availability of ATM

facility all the time i.e,, 24 hours a day, 7 days a week, and 365 day a year without any

problems. The problems generally arise at ATMs are;

• Cash Out Situations

• Connectivity Problems

• Cash Jams

• Power Failures

(al) The most important reason for choosing a particular bank ATM is Bank Location

and next one is excellent service offered by the bank at ATM locations. So Banks should

focus more on these two areas to increase their customer base. This further helps the

commercial banks in completing the transition from traditional banking to ATM banking.

6.6 Technical Suggestions to Bank Branches

(a) Gateway PCs: The mobile phone numbers / landline phone numbers / IP phone

numbers / e-mail addresses of the ATM System Administrator / Branch Manager / ATM

manager at Zonal Office should be entered in the gateway PCs. In case of problems in

functioning of the gateway PCs the message should be sent to the branch managers as well as

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the branch controllers/ATM Manager at Zonal Office by the ATM Switch Centre to ensure

that the Gateway PCs are rectified.

(b) Information: The ATM in-charges should know the IP address of ATM, Gateway

PC, Router, IDU of VS AT, and Switch Centre at Central Servers of the Bank so that in case

of any problem he would be in position to ping that particular IP Add to ascertain

connectivity. To enable him to identify the source/point of the problem and contact the

relevant vendors. With this the branch can ascertain whether the off-site ATMs are working

or not.

(c) UPSs: Separate 1 KVA UPS should be provided at the bank branches for the

Gateway PC and router and this must remain switched on at all times. The power supply of

the UPS and the Gateway PCs should be separate from the main switch. The branch UPS

should also be kept attached to the gateway PC and this 1 KVA UPS could be used as a

standby UPS for the Gateway PC (but kept in a running mode all the time).

(d) Vendors: The Bank should monitor the down-time of ATMs at the Switch Centre

also and this report should be matched with the downtime report submitted by ATM vendors

like NCR/Die bold.

(e) Penalties: In case of any ATM being down for more than 24 hours on account of

any normal / serious technical problem, outsourcing agency NCR or Die bold should be

imposed a penalty recoverable from the management service charges being paid by the Bank.

This would be possible only if the Switch Centre does some sort of monitoring, regarding

down time claims being made by NCR / Die bold.

(f) Electronic Equipment: Automatic shutdown of important Electronic

Components/Computer peripherals like Screen/VDU etc., after the transaction completes by

the customer improves the life of the Electronic System and also reduces the cost and

indirectly it helps to improve the customer service of the Banks.

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6.7 Suggestions to Customer

(a) Functionality: At present some banks are offering only cash withdrawals. Banks

should immediately provide other facilities such as Cash deposits, Issue of Cheque books,

Drafts, Stop Payment Instructions of Cheques, and transfer of funds from one branch to

another branch of the same bank. Such a step will help in optimum utilization of the ATM

thereby reducing cost per transaction.

(b) Survey: All banks have to survey areas where there is potential for opening

branches. In such areas, ATMs can be set up instead of branches.

(c) Site Selection: While selecting the sites for ATMs, preference may be given to

locations where Petrol Bunks, Super Markets, Bus Stands, Commercial Complexes, Shopping

Malls are located.

(d) Customer Education: To avoid frauds, customer complains etc. ATM Users may

be educated on operation of ATM, safe keeping of Pass word, ATM Card etc. Customers can

be educated or trained with the help of video shows at important/selected places on how to

operate ATM.

(e) Lighting at the ATM: ATM locations must be well lit, crowded and have an

uninterrupted way so that it ensures welcoming effect and users unhesitatingly access ATMs.

(f) Fast Cash: In locations with large number of ATM users, FAST CASH dispensers

and providing higher denomination currency facilitates faster disposal and consequently

ensures customer satisfaction.

(g) Drop Box: Drop Boxes for collection of cheques of customers may be provided

near ATMs so that ATM user may have option either to deposit cheques through ATM or

drop boxes. This will reduce transaction time of ATM.

(h) Peak Hour Rush: Wherever feasible, setting up of more than one ATM at the

same location may be considered. This will reduce peak hour rush and consequent delays.

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(i) Language: ATM brochures / pamphlets are to be printed in local language instead

of English thereby customers can easily understand the technical concepts of the ATM.

(j) Software: Local language software may use in ATM for displaying various

functions of the ATM so that the customers are comfortable in transacting their business.

Local Languages give good results than English.

(k) Survey: ATM Customer Opinion Survey needs to be conducted frequently to

ascertain the needs and expectations so as to take appropriate remedial measures.

(l) Biometric: Additional security features like IRIS and RECOGNITION OF

BIOMETRICS SYSTEM of the customers increases the confidence level on ATM

functioning among the customers.

6.8 Respondents’ (Customers) Suggestions to Improve ATM Services

a) Need for more ATMs: As shown by the survey the ATM network needs to be

substantially expanded. A thorough study should be carried out before finalizing the location

for an ATM. ATM has to be opened in residential areas where there is a large customer base.

ATM can also be located in and around big companies whose salary accounts are handled by

the bank.

b) Need for more visibility of ATMs: The ATMs should be made visible i.e,,

one should be able to see the ATM from a distance. ATMs which are located in busy areas

where traffic is more are not visible. So due precautions should be taken to make such ATMs

more visible to the customers.

c) Need for more signage: Respondents say that most of the ATMs do not have

sign boards indicating the existence of an ATM at that place. People visit the ATM only

when they know that there is one at that place. Large boards need to be put up so that people

can easily see identify the existence of an ATM there from a distance. The boards should be

bright and attractive i.e., they should catch the attention of the customers.

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d) Need to reduce the down time of the ATM: Many of the customers

encounter problems with ATMs such as ATMs not working or the ATMs not dispensing the

cash. This needs immediate attention and action on the part of the bank staff. Preventive

measures should be taken to see such things do not recur.

e) Need for customer relationship management: The customers are to be

educated about the use of ATM. Whenever the customer comes to cashier at the Bank Branch

either for withdrawal or for depositing cash they should be encouraged, directed and educated

to use ATM. The bank should request the customer to seek guidance from their well trained

security if they are not sure of the procedures. A separate dedicated team should be set up to

address customer complaints.

f) Next ATM location: The ATMs of the bank should be located in an orderly

passion, such that in case any ATM doesn’t function properly the customers should be in a

position to use the next ATM.

g) Indicators / Lollipop Boards: There should be indicators / lollipop boards on

the main roads indicating where the next ATM of the concerned bank can be found. This has

implemented in private sector banks not in public sector banks.

h) New / ATM Fit Notes: Banks must make arrangements to ensure that new

and properly sorted notes are available for loading onto the ATMs especially the off-site

ones.

i) Education of customers: Issuing of cards, delivery of pins and motivating the

customers to use ATMs guiding the customer in how the ATM is operated and the benefits of

an ATM card are very important in popularising the use of ATMs. The branch staff must be

motivated by making them aware of the benefits to actively participate in facilitating

migration of customers to alternate delivery channel.

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6.9 Scope for Further Research

Banking is a larger area; bank management is not easy; and scope of the use of

technology in banking is wider. Failure of banks can shatter the confidence of the investors;

shatter the hopes of the small savers; and can push the nation’s economy into doldrums. This

research is only a beginning in this area of knowledge. There is a lot of scope for further

research. Some of the areas of further research are:

• Bank specific, area specific and channel specific studies can be undertaken.

• A few more systematic comprehensive research studies are necessary for either

confirming or contradicting the conclusions arrived at in this study.

• Comprehensive systematic studies can be conducted on customer satisfaction

relating to ATM, Internet and Mobile Banking.

• Studies can be conducted for inventing the new products/services, which can be

introduced by the banks by using technology.

• Studies can be conducted for inventing the new products/services, which can be

rendered through the ATMs to further increase the utility of ATMs.

• Studies can be conducted on problems and prospects of Internet Banking and

Mobile Banking.

6.10 Epilogue

Automated teller machines (ATMs) are not new, but all the cardholders do not make

full use of all the facilities that ATMs offer. Due to ignorance or technophobia, many

customers still opt for more cumbersome and costly methods of conventional banking. But

once the customer becomes familiar with the use of an ATM, it makes banking more

convenient. For those who do not like to wait in long queues at the bank, ATM banking is

better. It offers the convenience of doing most of the banking from a machine which is often

situated outside the bank near the customer’s house or office. Customers can have access to

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the bank account 24 hours a day. ATM banking is considerably cheaper than the other

methods of payment, such as issuing cheques or doing transactions over the counter inside

the bank. However ATMs are not faultless and ATM fraud is not uncommon. Criminals

distract the customers, make them part with both the card and the PIN, and draw cash

surreptitiously from the account. Therefore, customers have to take care/precautions while

using ATMs. Some of the precautions to be taken by the customers are:

a) Treat the ATM card as cash and do not leave it lying around.

b) Keep the PIN secret. Never keep a record of it on your card or on any piece of

paper in your wallet, purse, or on cell phone. It is better to memorize the PIN.

c) If the card and PIN are either lost into the hands of fraudulent persons or

stolen by the criminals, they can draw cash or draw an electronic cheque or shop at a store to

the value for the balance in the account or up to the maximum withdrawal limit with that

ATM card. So it is vital that if it is lost or stolen, the customer has to report it to the bank

concerned immediately.

d) Most banks have a daily withdrawal limit on their ATM cards, this amount can

be increased or decreased by you. It is preferable to keep this limit as low as possible because

loss can be kept at minimum when the card is lost into the hands of fraudulent persons.

Lower the limit lower is the risk due to fraudulent withdrawal of cash, fraudulent drawing of

an electronic cheque or fraudulent shopping at a stores.

e) Consider taking the ‘lost card insurance’. The Tost card insurance’ covers the

risk against theft or loss of money from the bank account from the time the card is lost until

the time the loss of card is reported to the bank. Once the loss of card is reported, the fraud

becomes the bank’s problem and the bank will make good the losses.

f) Some of the methods adopted by the miscreant are card swiping, card theft and

posing like bank officials to trap the customers.

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• Card swiping: Criminals distract the customers so that they can swipe cards with

them. They are so slick that most people are unaware that their cards have been

swiped.

• Card theft: Criminals insert small objects, such as match sticks or paper, into the

card reader. This enables them to trap the card of a genuine customer in the card

reader, leading the customer to believe that the card is retained by the machine. In

an attempt to retrieve the card, the customer may repeatedly key in his PIN while

the criminal observes him from a distance. The criminal may also offer the

customer his cellular phone to cancel the card. The criminal then dials an

accomplice who claims to be a bank official and pretends to cancel the card on the

telephone and asks the customer for PIN. The criminal advises the customer to

key in his PIN at the ATM and press the cancel button to retrieve his card, taking

note of the PIN. Once the customer leaves the ATM, the criminal removes the

card with a sharp object. Being in possession of the card and the PIN, he then

commits the fraudulent act of withdrawing money from the customer’s account.

• Fraudsters posing as bank employees make the gullible customers to part with PIN

if they want to enter a competition with lucrative winnings.

g) Sometimes the card may be retained by the ATM. If the card is legitimately

retained by an ATM, the machine issues a slip. If the slip is not issued, cancel the card

immediately.

h) If any suspicion arises that the PIN is known to somebody else, cancel the card

or change the PIN.

i) Keep the bank’s 24-hour toll-free lost card number with you, so that you can

report loss of card as soon as possible so as to prevent fraudulent transactions.

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j) If you feel unsafe to draw cash at an ATM or if there are suspicious

individuals loitering around, leave the area immediately. Return at another time or use

another ATM.

k) Follow the instructions on the ATM screen - only type in your PIN when

prompted to do so.

l) Stand close to the ATM and block the keypad with your hand, so that nobody

behind you can read your PIN when you type it in.

m) Always check to see that you received your own card back when you have

finished transacting at an ATM. It is a good idea to mark your card so that you can recognise

it instantly, for example one can mark the card with bright nail polish in one comer for easy

recognition.

n) Never accept help from anybody at an ATM, not even if the person claims he

is a bank official.

o) Never divulge the PIN to anybody, not even to a bank official as they never

need to know the PIN to assist the customer.

p) Do not count your cash in front of the ATM where everybody can watch you.

q) Avoid using ATMs in secluded areas after it becomes dark.

r) Do not allow yourself to be distracted while using an ATM, for example,

somebody saying you have dropped your money.

s) Be alert at all times.

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