A PRESENTATION ON

“ATM” PRESENTED BY:

PATEL JAIMINI (108)

PATEL NEHA (114)

PATEL NIRUPA (116)

INTRODUCTION OF ATM

Automated Teller Machines (ATMs) have gained prominence 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. According to a 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.

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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.

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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 customers.

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.

How Do ATMs Work?

An ATM is simply a data 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

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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.

Settlement Funds

When a cardholder wants to do an ATM tra nsaction, 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.

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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.

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.

Parts of ATM

Card Reader Keypad Speaker Display Screen Receipt Printer Cash Dispenser

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.

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.

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.

BENEFITS OF ATM

Cash Withdrawal and Balance Enquiry

Cash /Cheque Deposit

Bill Payments

Change ATM pin

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.

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.

THANK YOU……..