CHAPTER-1: INTRODUCTION

1.1 INTRODUCTION TO THE TOPIC:-

Technology has been one of the most important factors for the development of mankind.
Information and communication technology is the major advent in the field of technology
which is used for access, process, storage and dissemination of information electronically.
Banking industry is fast growing with the use of technology. In the last few decades,
information technologies have changed the banking industry and have provided a way for
the banks to offer differentiated products and services to their customers. The introduction of
technology-enabled banking service delivery probably started off with HSBC bank
introducing ATM for the first time in India way back in 1987. Even though these electronic
delivery channels were introduced by foreign banks and new private banks in order to
surmount their limitation of fewer branches, of late even the public sector banks are also
aggressively investing in these services. So the action in this field really got heated up during
the last 10-12 years. On 27th June 1967 the first “Cash Machine” colloquially called as
“Hole on the walls” and was described as “Mini-Banks” which was designed to allow
customers access to cash 24 hours a day, outside of the restrictive opening times of banks.
This is the origin of the Alternate delivery Channel for Banks services, via ATM which is
the first such delivery channel Bank‟s started using. Forty years ago cash was only available
from 9-3 pm Monday to Friday and Saturdays from 9 -12.30 pm, and as cash was king
queues outside branches on a Saturday morning to get weekend money were common. Now
you can get money anytime, anywhere. In India, ICICI bank was the first bank which offered
this delivery channel, by kicking off its online services in 1996. Other private sector banks
like Citibank, IndusInd Bank and HDFC and Times Bank (now part of HDFC bank) started
offering internet services in 1999. State bank of India launched its services in July 2001.
Other public sector banks like Bank of Baroda, Allahabad Bank, Syndicate Bank and Bank
of India, also rolled its services during the same time. Banks in India currently offers “Fully
Transactional Websites” to their customers. The customers would conduct a variety of
transactions through internet banking facility which includes: account summary, details of
historical banking transactions, funds transfer, International Journal of Interdisciplinary and
Multidisciplinary Studies (IJIMS), 2014, Vol 1, No.4, 42-49. 43 loan applications, bill
payments, cheque book request, cheque status enquiry, stop cheque request, credit card
payments/ statements, facilities to contact account managers, etc. In India, slowly but
steadily, the Indian customer is moving towards Internet banking. However the success of e-
banking isn‟t without its problems. Firstly the adoption of e-banking has not kept pace with
that of internet usage. This gap is attributed to the lack of trust among bank customers,
particularly among internet users age 65 and older. Secondly, customers still prefer face to
face interaction due to reasons such as fear of the online environment and lack of trust in the
internet. Recent literature on e-banking showed that the formation of trust can help reduce
the impact of key inhibiting factors such as fears about using the online service among non-
e-banking customers.

Technological innovations have enabled the industries to open up efficient

delivery channels. When technological innovations applies to the financial institutions it helps to
gathering, processing, analyzing, and providing information in order to meet the needs of
customers and to meet up their high expectations and allowing for delivery of banking
products and services more conveniently and effectively than ever before. Therefore
the modern banking has become customer driven and technology driven. In 1988
Sampath Bank and Bank of Ceylon start to operate ATM for the first time in country.
ATM means both travelling without money and anytime money. Information and
Communication Technology (ICT) is the main transaction platform of the Internet banking,
ATM transactions, mobile banking and debit and credit card transactions. With the use of ICT
bank procedure, it has become more accurate, fast, secure and profitable. Debit and credit
cards played a vital role as it turned the banking process much easier in customer’s
perspective as well as the bankers. The time has been saved with the use of these cards and
especially when the cash can be taken from the ATM. It has been one of electronic services
proven successful in recent time. ATM is an electronic telecommunication device which
allows customers to complete basic transactions without the aid of branch representative or
teller. Basic ATM will withdraw cash and will provide report of the account information.
Complex ATM machines will accept deposits, Pay bills, Funds transfer and provide mini
statement of the account. ATM has created a win-win situation by extending greater
convenience and multiple options for customers while providing terrific cost advantage to the
bank. Competition among the banks will lead towards a better service for their customers from
the latest technology they use. Rigid competition in the banking sector in forcing the banks to
become customer friendly and customer oriented. Customer satisfaction has become more
important with the increasing competition. Banking sector has undertaken various initiatives to
entice retain of their customers.

Automated teller machine (ATM) banking is a popular access channel to banking products
and services behind branch banking. Banks have been offering more access points to newer
ATM technologies that are faster, secure and with a wider range of services that include cash
depositing to achieve competitive advantage through the ATM banking. To retain bank
profitability, expanding the base of satisfied customers is of essence. As such the concept of
customer satisfaction and what makes customers satisfied is an area of frequent market
studies. Knowing the factors that influence customers’ satisfaction with ATM banking is of
significance when it comes to deployment of ATM technologies.

An automated teller machine or automatic teller machine (ATM) is a device that provides the
clients of financial institutions with access to money transactions in a a space without the
need of bank customers. The modern ATMs, the customer is identified by inserting a ATM
card with a chip that contains a unique card number and some data such as an expiration
date, CVV(Card Value Verification) code and customer name. Customer identification and
authentication is provided by the customer providing a personal identification number (PIN).
Using an ATM system, customers can access their bank accounts in order to make money
withdrawals, debit card fund advances, and check their bank account balance.

Fraud against ATM system and people's try to use them takes several methods. Once
customer's bank card is lost and the password is known, the hacker will draw all the money
in the short span of time, which brings huge money losses to customer. Unlike bank system,
ATMs does not require any person performing the transaction to present a his picture
identification such as sign and his physical presence. If the bank card is stolen by the
criminal and the PIN number is known, a criminal person can easily make an access to the
bank account. There has also been lot of incidents of criminal by the Man-in-the-middle
attacks, where criminals have attached card readers or fake keypads to the existing ATM
machines. These fake keypads will be used to read customers' PINs and transaction password
in order to make unauthorized access to the bank customers.

In banking industry, ex-services are revolutionizing the way business is conducted.

Electronic based business models are replacing conventional banking system and most banks
are rethinking business process designs and customer relationship management strategies. It
is also known as e-banking, online banking which provide various alternatives e-channels to
using banking services like ATM, credit card, debit card, internet banking, mobile banking,
electronic fund transfer, electronic clearing services etc. However as per e-banking scenario
ATM and mobile banking are most acknowledged than other e-channels.

Automated Teller Machine (ATM) refers to a machine that acts as a bank

teller by receiving and issuing money to and from the ATM account users/holders. ATM
means neither “avoids travelling with money” nor “any time money”, but certainly implies
both. ATM cards are fast replacing confounding withdrawal forms as a convenient way of
getting your money from banks. In a way, they are rewriting the rules of financial
transactions. A smart person no longer needs to carry a wallet- full of paper money; rather
what he/she needs to do is to find out an Automated Teller Machine (ATM) card from his
/her pocket, insert it in the slot of the machine, punch in a few details and go home with hard
cash.

The history of ATM can be traced back to the 1960s, when John shepherd- Barron
who was managing director of De La Rue Instrument invented the first ATM machine. That
machine was used by Barclays Bank ( Barclays Bank in Enfield Town in North London,
United Kingdom) on 27 June 1967.

ATM is designed to period the most important function of bank. The plastic
card is replacing cheque, personal attendance of the customer, banking hour’s restrictions
and paper based verification. ATMs are used as spring board for Electronic Fund Transfer.
ATM itself can provide information about customers account and also receive instructions
from the customers- ATM holders. An ATM is an Electronic Fund Transfer terminal capable
of handling cash deposits, transfer between accounts, balance enquiries, cash withdrawals
and pay bills.
ATMs have brought so much relief to the financial world. Various problems were solved
with the advent of these machines ranging from keeping the banking hall free of traffic with
its attendant issues. Gone are the days of maintaining long queues in the banking hall
which made the work of bankers more difficult thus leading to all forms of errors. Even to
customers, having to leave the comfort of their homes for financial transactions before
bankers close for the day’s business is a major problem solved by Automated Teller
Machines. However, as man begins to realize the gains of technology brought about by
this machine to supplement human tellers, little did one know that the joy shall be short
lived by the various sharp practices leading to financial losses. As banks are losing, so are
the customers. News Media are filled with various forms of complaints on how users are
losing money to fraudsters. Some have vowed never to come near usage of various cards –
debit, credit or prepaid – local or international. The problem may even go as deep as
engaging in legal battle between banks and their customers. The need to find a lasting
solution is the main focus of this paper.

1.2 CONCEPT OF CUSTOMER SATISFACTION:-

Mwatsika defines customer satisfaction as a mental state which results from customer's
comparison of expectations prior to a purchase with performance after a purchase. Halstead
et al (1994) states that customer satisfaction is a transaction specific effective response from
customer's comparison of product performance to some pre-purchase standard. ATM
banking customers have expectations of their bank’s ATM banking services against which
each service encounter enhances comparison of ATM banking performances to the
expectations. The comparison is conducted after the immediate usage of ATM banking
services or over time of ATM banking usage.

Customer satisfaction with ATM banking is therefore the feeling developed from
an evaluation of the ATM banking use experience whether the ATM banking performed
relatively well or poorly against expectations. Churchill GA & Surprenant defines customer
satisfaction as the overall post purchase or usage evaluation. Look at customer satisfaction as
a summation of satisfaction with various attributes of a product which alludes to the fact that
the satisfaction with ATM banking will come from the satisfaction with the performance of
its attributes. The evaluation judgement about satisfaction with ATM banking is therefore
convinced to fall somewhere on a bipolar continuum where at the lower end it signifies low
levels of satisfaction ( expectations exceed performance perceptions) and at the higher end it
signifies a higher level of satisfaction (performance perceptions exceed expectations). This
evaluative judgement occurs at a particular time based on usage experience of ATM banking
which occurred at a particular time or on a accumulated experience of ATM banking.

The concept of customer satisfaction has in general become of particular importance because
various empirical researchers have shown that it is an antecedent of customers retention that
increases market share the corporate image of the firm and long term profitability. Banks
would expect to retain and/or expand customer base of ATM banking, holding other factors
constant, if the ATM banking performance meets customer’s expectations or surpasses
expectations.

The changing business environment offers challenges and opportunities to the organizations.
The changing customers‟ perception of quality poses unique challenge. Excellence in quality
has become an imperative for organizational sustainability. The developments of
technologies have enabled organizations to provide superior services for customers‟
satisfaction. The number of banks customers preferring to use self- service delivery systems
is on the increase. This preference is attributed to increased autonomy in executing the
transactions. Banks are increasing their technology-based service options to remain
competitive. The ATM is an innovative service delivery mode that offers diversified
financial services like cash withdrawal, funds transfer, cash deposits, payment of utility and
credit card bills, cheque book requests, and other financial enquiries.
 CHAPTER 2: LITERATURE REVIEW

2.1 LITRATURE REVIEW:-

Sivakumar M., et al (2017) Researcher’s main aim to examine the services provided by
selected public sector banks in Kanchipuram town. For this investigation primary data was
collected from 500 respondents through a structured questionnaire. It also includes the
review of the various services provided by the five banks under the study. Collected data
was analysed according to the objectives of the present research and result of the statistical
analysis to compile the results. Hence it is suggested that banks should proactively monitor
customer’s preference with regard to the transaction fee, delivering of ATM card promptly
and issue of new cards due to loss of original cards in order to retain their customers.

Vineshkumar S. & Bhatt B., (2018) Researcher’s main aim to analyse the level of
customer satisfaction in ATM services provided by banks in India. For this investigation
primary data was collected from 110 respondents of Bank of Baroda and Yes Bank in
Ahmadabad city through a structured questionnaire using random sampling method. The
study reveals that the most significant problems faced by the customers regarding ATM is
the out of order and out of cash condition of the machine and the majority of respondents are
fulfilling their requirements through using ATM services and they also happy with number
of ATMs available in their locality, but most of respondents are not happy with o cost
charged by different banks for ATM services and addressing the grievances of the ATM
customers.
Singh S., (2011) Researcher’s main aim to understand the impact of ATM services on the
customer satisfaction in Indian banking sector. The study has used the primary data of
customer satisfaction survey (N=400). The data was collected using a structured
questionnaire designed to ascertain the satisfaction levels. ANOVA and factor analysis was
used to identify significant factors and frequency analysis was used to analyse customer
satisfaction. The ATM services have a positive impact on the customer satisfaction, if proper
functioning is ensured by banks, there will be significantly higher customer satisfaction. The
research has been carried out primarily in urban areas and hence cannot be generalized on all
India bases. The banks can utilise the findings to improve the services of ATMs and can
enhance the overall satisfaction of their customers. The paper identifies the significant
factors which the banks may take care to enhance the customer satisfaction.

Meena R., (2015) Researcher’s main objective is to provide a complete knowledge of ATM
and its benefits and also to have knowledge of the problems of ATM. The study has used the
primary and secondary data both. A questionnaire was prepared using closed end questions
for a sample size of 65 respondents. Statistical analysis tool was used for finding customer’s
satisfaction level. The study reveals that people use ATMs for mostly withdrawals of cash
and the rest of the purposes are minimally used. Also safety issues are the main concern for
many of the customers. Hence the banks have to come up with safety measures that could be
beneficial for many of the customers. Also it was found that the cash storage and
unavailability of preferred denomination are the complaints received maximum from the
customers.

Saravanan A., (2017) Researcher’s main aim is to identifying the users and challenges
faced by customers of State Bank of India (SBI). The paper highlights ATM services most
preferred by customers as well as the awareness level, providing facilities and problems
faced by customers regarding ATM services of State Bank of India (SBI) in Salem district.
The study has used primary data collected by interview method through the structured
questionnaire. The sample size is 120 ATM users of State Bank of India (SBI) in Salem
district. The data collected was analysed through percentages, chi-square test and Weighted
Average Method. The study clearly stated that age group, gender, income level of the
respondents does not affect their awareness level about ATM services but educational level
of the respondents does. Also, most of the respondents faced network failure problem ranked
first, while least preference was given to ATM card was damaged.

Renuka R., (2014) Researcher’s main aim is to focuses on customer satisfaction towards
ATM services offered by the banks and tries to suggest ways to improve services. Amongst
other suggestions, the authors have suggested increasing awareness about various facilities
and enhancing the withdrawal limit of cash per day. 24 hours access got the first rank while
quality of receipt got the second rank for level of satisfaction. To find out the level of
satisfaction respondents were provided a list of fourteen factors which were to be ranked.
Likert scale was used for the purpose. The study considers only customer perceptions
towards ATMs. However, staff perceptions have not been considered.

R. Melba Kani et al., (2013) Researcher’s main motive is to study the issues and challenges
towards use of ATM services in South Tamil Nadu. The objectives of the study was to
examine the awareness level of ATM services at South Tamil Nadu, to study the level of
customer satisfaction on various aspects of ATM services in South Tamil Nadu, to identify
customer problems while using ATM services and to offer suggestions to overcome the
problems in ATM services in the near future. Primary data was collected from customers of
State Bank of India in South Tamil Nadu which included three districts Kanyakumari,
Trinevelli and Thothukody. The study concludes that young people are drivers of emerging
technology in developing areas and that SBI has been successful in the arena of ATM cards.
This study has used statistical tools such as chi-square test and weighted average score.
However, this study pertains only to the public sector banks and is not a comparative study.
While trying to find out the problems faced by customers the study does not consider the
cost effectiveness aspect.

Vijay M. Kumbhar (2011), the researcher strives to provide a preliminary investigation of

factors affecting the customer satisfaction in ATM service. The study is based on primary
data from customers of Nationalized and Private sector banks. The objectives of the study
were to identify important service quality dimensions affecting ATM service quality and
develop a specialized scale to assess customer satisfaction in ATM service, to examine the
predictive ability of service quality, brand perception and perceived value in customer
satisfaction in ATM service, to examine the dimensionability and reliability of the proposed
scale and their future applicability. The study reveals that system availability, e-fulfilment,
cost effectiveness, security and responsiveness, efficiency, easiness and convenience and
contact were most important factors. This study is with reference to private and public sector
banks. However, co-operative banks have not been considered. As regards, in the present
study, banks from all the three sectors (public, private and co-operative) have been
considered for better comparison. Further, this study has not tried to find out the cost
effectiveness in terms of actual saving in money, which has also been included in the present
research study.

Ramola Premlatha J. et al (2012) The objective of this paper was to understand the socio-
demographic variables of customers, to analyse the satisfaction level of customers towards
ATM services in Vellore district, to study the convenience of using ATM and also to find
out customer attitude towards safety, assurance & flexibility of using ATM service. Five
point Likert scale was used to collect customer perceptions. Significant relationship between
age and convenience and safety was found to exist. Important relationship between gender
and tangibility, convenience and responsiveness was found to exist. There was no crucial
difference among occupation of respondent with regard to satisfaction level. The researcher
has suggested that bankers in order to retain the customer must provide safety, accurate
information and make for using ATM services. The research is based on customers
belonging to various banks but the author has not presented data and results based on types
of sample bank.

Sakthivel N. (2008), Researcher’s main motive is to analyzes the levels of satisfaction of the
ATM customers of ICICI Bank and SBI. The objectives of the study were to find out the
factors influencing customers to select ATM services, to understand their levels of
satisfaction of ATM services, to analyse the problems faced by the ATM customers at
Gobichettipalayam in Tamil Nadu. The analysis showed that convenience was ranked first.
Nearness was ranked second followed by round the clock facility. Prestige was ranked fourth
and minimum balance was ranked fifth. From the analysis of customer satisfaction of ATM
services, 72 percent of ICICI customers were highly satisfied and 78 percent of SBI
customers were highly satisfied. The study revealed that “High minimum balance” was the
most significant problem faced by the customers. The second problem faced by customers
was “Fine on not maintaining minimum balance” and the third problem was “crowd during
peak hours”. The researcher has suggested opening up additional ATM counters to improve
customer satisfaction. Thus, this study takes into account only private and public sector
banks leaving out co-operative sector. Further, the researcher has not tried to find out the
customer perceptions related to cost effectiveness of ATM usage. Also this study does not
focus on staff perceptions unlike the present research study.

2.2 GAP ANALYSIS:-

ATMs have made hard cash just a door step away from our place throughout the
day at any corner of the world and it allow us to do a number of banking functions-such as
withdrawing cash from one’s account, making balance inquiries and transferring money
from one account to another using a plastic, magnetic-stripe card and personal identification
number issued by the financial institution, ATM providing a variety of banking services to
customers without having to come directly to the branch of a bank. After reviewing the
literature on assessment of customer satisfaction by services provided by ATM centres, it is
observed that no such study has been undertaken as far in Brajrajnagar town as well as it
found important to verify the customer satisfaction regarding the ATM service.

Therefore the researcher has decided to undertake the present study on customer satisfaction
by the services provided by ATMs in Brajrajnagar town.
 CHAPTER 3: DETAILS ON ATM SERVICES AND
CUSTOMER SATISFACTION

3.1 OVERVIEW:-
An automated teller machine (ATM) is an electronic banking outlet that allows customers to
complete basic transactions without the aid of a branch representative or teller. Anyone with
a credit card or debit card can access most ATMs. The first ATM appeared in London in
1967, and in less than 50 years, ATMs spread around the globe, securing a presence in every
major country and even tiny little island nations such as Kiribati and the Federated States of
Micronesia. ATMs are convenient, allowing consumers to perform quick, self-serve
transactions from everyday banking like deposits and withdrawals to more complex
transactions like bill payments and transfers. An automated teller machine (ATM) is an
electronic telecommunications device that enables customers of financial institutions to
perform financial transactions, such as cash withdrawals, deposits, transfer funds, or
obtaining account information, at any time and without the need for direct interaction with
bank staff.

ATMs are known by a variety of names, including automatic teller machine in the United
States
(ATM, American, British, Australian, Malaysian, SouthAfrican, Singaporean, Indian, Maldi
vian, Hiberno, Philippines and Sri Lankan English), often redundantlyATM
machine, automated banking machine (ABM, Canadian English Although ABM is used in
Canada, ATM is still very commonly used in Canada and many Canadian organizations use
ATM over ABM In British English, the terms cash point, cash machine, minibank (the
official name of the Yorkshire bank ATMs), and "hole in the wall" are most widely
used. Other terms include any time money, cashline, nibank, tyme machine, cash
dispenser, bankomat or bancomat. Many ATMs have a sign above them, indicating the name
of the bank or organisation that owns the ATM, and possibly including the networks to
which it can connect. In Canada, ABMs that are not operated by a financial institution are
known as "white-label ABMs".

According to the ATM Industry Association (ATMIA), there are now close to 3.5 million
ATMs installed worldwide. However, the use of ATMs in Australia is gradually declining –
most notably in retail precincts.

On most modern ATMs, customers are identified by inserting a plastic ATM card (or some
other acceptable payment card) into the ATM, with authentication being by the customer
entering a personal identification number (PIN), which must match the PIN stored in the
chip on the card (if the card is so equipped), or in the issuing financial institution's database.

Using an ATM, customers can access their bank deposit or credit accounts in order to make
a variety of financial transactions such as cash withdrawals, check balances, or credit mobile
phones. ATMs can be used to withdraw cash in a foreign country. If the currency being
withdrawn from the ATM is different from that in which the bank account is denominated,
the money will be converted at the financial institution's exchange rate.

3.1 Understanding Automated Teller Machines (ATMs)

Since the first ATM appeared in 1967, the popularity of these machines has steadily been on
the rise. There are more than 3.5 million ATMs in use across the world. They are also known
in different parts of the world as automated bank machines (ABM) or bank machines.
There are two primary types of ATMs. Basic units only allow customers to withdraw cash
and receive updated account balances. The more complex machines accept deposits,
facilitate line-of-credit payments, transfers, and report account information. To access the
advanced features of the complex units, a user must be an account holder at the bank that
operates the machine.

Analysts anticipate ATMs will become even more popular and forecast an increase in the
number of ATM withdrawals. ATMs of the future are likely to be full-service terminals
instead of or in addition to traditional bank tellers. The average amount withdrawn from an
ATM is $60.

3.3 Parts of an ATM:-

Although the design of each ATM may be different, they all contain the same basic parts:

 Card reader: This part reads the chip on the front or the magnetic stripe on the back of
the card.
 Keypad: The keypad allows the consumer to input information like the PIN, the type of
transaction he or she intends to do, and the amount of the transaction.
 Cash dispenser: Bills are dispensed through a slot in the machine, which is connected
to a safe at the bottom of the machine.
 Printer: If required, consumers can request receipts which are printed here. The receipt
records the type of transaction, the amount, and the account balance.
 Screen: The ATM issues prompts that guide the consumer through the process of
executing the transaction. Information is also transmitted on the screen such as account
information and balances.

3.4 KEY TAKEAWAYS

Automated teller machines are electronic banking outlets that allow people to complete
transactions without the help of a bank representative or teller. ATM transactions can be as
simple as a deposit or balance inquiry, or more complex like a balance transfer or bill
payment.In order to use an ATM, consumers need to have a debit or credit card, and a
personal identification number.

Special Considerations: Using ATMs

Banks place ATMs in and outside of their branches. Other ATMs are located in high traffic
areas such as shopping centers, grocery stores, convenience stores, airports, bus and railway
stations, gas stations, casinos, restaurants, and other locations. Most ATMs that are found in
banks are multi-functional, while others that are offsite tend to be those that provide simple
services.

ATMs require consumers to use a plastic card—either a bank debit card or a credit card—to
complete a transaction. Consumers are authenticated by a personal identification number
(PIN) before they can execute any transactions.Many cards come with a chip, which
transmits data from the card to the machine. These work in the same fashion as a bar code
that is scanned by a code reader.

ATM Fees

Account holders can use their bank's ATMs at no charge, but accessing funds through a unit
owned by a competing bank usually incurs a fee. According to MoneyRates.com,
the average fee to withdraw cash from an out-of-network ATM was $4.66 as of February
2019. Some banks may reimburse consumers the fee, especially if there is no corresponding
ATM available in the area.

ATM Ownership

In many cases, banks and credit unions own ATMs. However, individuals and businesses
may also buy or lease ATMs on their own or through an ATM franchise. When individuals
or small businesses such as restaurants or gas stations own ATMs, the profit model is based
on charging fees to the machine's users.
Banks also own ATMs with this intent, but in addition, the convenience of an ATM is a
service that banks use to attract clients. ATMs also take some of the customer service
burdens from bank tellers, saving banks money in payroll costs.

Using ATMs Abroad

ATMs make it simple for travelers to access their checking or savings accounts from almost
anywhere in the world. When travelers use foreign ATMs, they receive a better exchange
rate than they would at most currency exchange offices. Additionally, using an ATM is
easier than cashing traveler's checks, and arguably, it makes travel safer, as the traveler
doesn't have to carry a lot of cash.

However, the account holder's bank may charge a transaction fee or a percentage of the
amount exchanged. Most ATMs do not list the exchange rate on the receipt, making it
challenging to track spending.

3.5 HISTORY OF ATM:-

As is often the case with inventions, many inventors contribute to the history of an invention.
In the case of the ATM, Don Wetzel invented the first successful and modern ATM in the
USA, however he was not first inventor to create an ATM. In 1939, Luther George Simjian
started patenting an earlier and not-so-successful version of an ATM.

An automatic teller machine or ATM allows a bank customer to conduct their banking
transactions from almost every other ATM machine in the world. Don Wetzel was the co-
patentee and chief conceptualist of the automated teller machine, an idea he said he thought
of while waiting in line at a Dallas bank.

At the time (1968) Wetzel was the Vice President of Product Planning at Docutel, the
company that developed automated baggage-handling equipment. The other two inventors
listed on the patent were Tom Barnes, the chief mechanical engineer and George Chastain,
the electrical engineer. It took five million dollars to develop the ATM. The concept of the
modern ATM first began in 1968, a working prototype came about in 1969 and Docutel was
issued a patent in 1973.
The world's first ATM was installed in Enfield Town in the London Borough of
Enfield, London on June 27 1967.The first working ATM was installed in a New York based
Chemical Ba An automated teller machine (ATM) is an electronic telecommunications device
that enables customers of financial institutions to perform financial transactions, such as cash
withdrawals, deposits, transfer funds, or obtaining account information, at any time and without
the need for direct interaction with bank staff.

ATMs are known by a variety of names, including automatic teller machine in the United
States[1][2][3] (ATM, American, British, Australian, Malaysian, South
African, Singaporean, Indian, Maldivian, Hiberno, Philippines and Sri Lankan English),
often redundantlyATM machine, automated banking machine (ABM, Canadian English[4][5]).
Although ABM is used in Canada, ATM is still very commonly used in Canada and many
Canadian organizations use ATM over ABM.[6][7][8] In British English, the terms cash point, cash
machine, minibank (the official name of the Yorkshire bank ATMs), and "hole in the wall" are
most widely used.[9] Other terms include any time money, cashline, nibank, tyme machine, cash
dispenser, bankomat or bancomat. Many ATMs have a sign above them, indicating the name of
the bank or organisation that owns the ATM, and possibly including the networks to which it can
connect. In Canada, ABMs that are not operated by a financial institution are known as "white-
label ABMs".

According to the ATM Industry Association (ATMIA),[10] there are now close to 3.5 million ATMs
installed worldwide.[11] However, the use of ATMs in Australia is gradually declining – most
notably in retail precincts.[12]

On most modern ATMs, customers are identified by inserting a plastic ATM card (or some other
acceptable payment card) into the ATM, with authentication being by the customer entering
a personal identification number (PIN), which must match the PIN stored in the chip on the card
(if the card is so equipped), or in the issuing financial institution's database.

Using an ATM, customers can access their bank deposit or credit accounts in order to make a
variety of financial transactions such as cashwithdrawals, check balances, or credit mobile
phones. ATMs can be used to withdraw cash in a foreign country. If the currency being
withdrawn from the ATM is different from that in which the bank account is denominated, the
money will be converted at the financial institution's exchange rate.

The first ATMs were off-line machines, meaning money was not automatically withdrawn
from an account. The bank accounts were not (at that time) connected by a computer
network to the ATM. Therefore, banks were at first very exclusive about who they gave
ATM privileges to. Giving them only to credit card holders (credit cards were used before
ATM cards) with good banking records. Wetzel, Barnes and Chastain developed the first
real ATM cards, cards with a magnetic strip and a personal ID number to get cash. ATM
cards had to be different from credit cards (then without magnetic strips) so account
information could be included

3.3 ATMs IN INDIA:-

There are number of Bank ATMs are functioning in India, this study covers ICICI, HDFC,
SBI, UTI and few other banks ATMs. ATMs are equipped with all the state of the art
services required by an ATM user. The general public’s can obtain the services of various
banks and other financial institutions from an ATM by getting an ATM Card. ATM Card
members can enjoy financial services like withdrawals; deposits, transfer, inquiries etc. from
an ATM on a daily basis.

Due to competition, many financial institutions in India proved various discounts and some
don't' even charge for their ATM services. Moreover networking between various banks
facilitates an ATM user to actually use an ATM anywhere and at anytime. ATMs are very
convenient. Daily withdrawals, deposits, transfers and other services can be done in seconds
without wasting any time. Cheques don't need to be used to withdraw money and time will
not be wasted standing in queue for hours at the bank.

ATMs are known throughout the world for their 24 hour quick services. ATMs are now
becoming a need in everyone's life. Being accessible even at odd hours, it is the popular
choice of many people wanting instant access to their bank accounts. Various banks offer
different facilities are services. Hence, one should choose between the alternatives provided
by various ATM service providers.
ATMs provide different service options as well as various measures for security. Computer
viruses may infect ATM machines. These viruses, which sometimes get installed by
computer hackers are continuously filtered in the ATMs in India using various security
measures such as keeping patches up to date and installing all new ATMs with firewall
software.

Customers should be aware of the safety measures they can take while using an ATM in
local places where there aren’t security cameras; the number of ATM frauds seems to be
rising. Various steps to prohibit such frauds have been taken, but without making the citizens
more vigilant, it is impossible to completely eradicate ATM fraud.

Some of the banks permit customers to interact with them and transaction electronically with
them. Such services include request for opening of accounts; requisition for cheque books,
stop payment of Cheques, viewing and printing statements of accounts, movement of funds
between accounts within the same bank, querying on status of requests, instructions for
opening of Letters of Credit and Bank Guarantees etc. These services are being initiated by
banks like ICICI Bank Ltd., HDFC Bank Ltd., Citibank, Global Trust Bank Ltd., UTI Bank
Ltd., Bank of Madura Ltd., Federal Bank Ltd., etc. Recent entrants in Internet Banking are
Allahabad bank (for its corporate customers through its ‘All Net’ service) and bank of
Punjab Ltd. State Bank of India has announced that it will be providing such services soon.
Certain banks like ICICI Bank Ltd., have gone a step further within the transactional stage of
Internet Banking by allowing transfer of funds by an account holder to any other account
holder to any other account holder of the bank. As consumer adoption of some of these
technologies makes there ubiquitous; bankers and technologists are in a position to extend
the infrastructure that supports the self-service channel. New opportunities to extend the
reach of ATMs become available.

Some of the fastest-growing areas for ATM deployment are in emerging such as
China and India. Countries such as these any not benefit from a robust fixed-line
infrastructure, especially in rural areas. For more than 300 years, banking was a simple
branch operation. However the introduction of the ATM in 1967 and the introduction of
online teller terminal systems have completely changed customer expectations the ATM
displacing the cashier/teller.

3.4 ATM FEATURES:-

 Cash withdrawal:- Normally allowing up to Rs.25000/- per day from Customers’ account
(50,000/- for HNI's)

 Balance enquiries:-Know our ledger balance and available balance.

 Mini statements:- Get a printout of our last 8-10 transaction on our Current Accounts.

 Deposit cash/ cheque:- Avails in full function ATMs customer can deposit both cash and
cheques. Cash deposited in ATMs will be credited to the account on the same day
(providing cash in deposited before the clearing) and cheques are sent for clearing on the
next working day.

 Fund Transfers: - Transfers funds form one account to another linked account in the same
branch and in different bank accounts.

 PIN Change: - Change the Personal Identification Number of ATM.

 Payments: - The latest feature of ATMs is used for payment of bills, making donations to
temples/ trusts, buying internet packs, airtime recharges for prepaid mobile phones, and
much more.

 Others: - Request for a cheque book from ATMs and our concerned branch will dispatch
in such that it reaches you within 10 working days.

3.5 ADVANTAGES OF ATM:-

 ATM provides 24 hour service- ATMs provide service round the clock. The customer
can withdraw cash up to a certain limit during any time of the day withdrawl.

 ATM gives convenience to bank's customers- ATM provide convenience to the

customers. Now-a-days, ATMs are located at convenient places, such as at the airports,
railway stations, and not necessarily at the bank’s premises. It is to be noted that ATMs
are installed off site (always from Bank premises) as well as on (installed within bankes
premises). ATM provide mobility in banking services for withdrawal.
 ATM reduces the workload of bank’s staff- ATMs reduces the work pressure on
bank’s staff and avoids queues in bank premises.

 ATM provide service without any error-ATMs provide service without error. The
customer can obtain exact amount. There is no human error as far as ATMs are
concerned.

 ATM is very beneficial for travellers- ATMs are of great help to travellers. They need
not carry large amount of cash with them. They can withdraw cash from any city or state,
across the country and even from outside the country with the help of ATM.

 ATM may give customers new currency notes-The customer also gets brand new
currency notes from ATMs.

 ATM provides privacy in banking transaction- Most of all, ATMs provide privacy in
banking transactions of the customers.

 For shopping purpose- Now a days, almost every shopping mall, restaurants and other
organisations are accepting debit or credit card payments. You don’t have to carry cash
around with you.

 ATMs offer the convenience of multiple locations- You can withdraw cash at any bank
That is part of the system to which your ATM card is linked.

 Protected by PIN- Your ATM card is protected by a PIN, keeping your money safe.

 No need of writing withdrawal slips- You don’t need to fill out withdrawal and deposit
slips as is required at banks.

 Faster- ATMs are faster than going to the bank, no long lines.

3.6 DISADVANTAGES OF ATM:-

 Security- Unlike bank teller, ATMs do not required performing the transactions to
present picture identification. Rather, the person must only insert a bank card and enter a
personal identification number. If the bank card is stolen and the number ascertained,
and an authorised person can easily access the account.
 Inability to perform complex transaction- ATMs can only perform relatively basic
transactions. This means that people who need to complete this longer transaction will
be forced to use the teller, restricting use of the ATM for people who need to complete
simple business. In this sense, the ATM is rather like the express line in a Supermarket-
faster for some, but unavailable to others.

 Fees- With the advent of ATM scheme ATM fees. Not only do banks of which you are
not a member charge fees for the use of their ATMs, but users are often charged
surreptitious fees by their own Banks for using other bank ATM- meaning the customer
is docked twice for the same transaction.

 Privacy- Unlike banks, in which security guards and Tellers are present to ensure the
person performing a transaction receives privacy, there is no such guarantee when using
an ATM. People may try to spy on users as delicate information appears on the screen,
without the user being aware.

 Difficulty to use- The performance of business at an ATM is generally quicker than that
at a human teller. However the ATM is incapable of providing personalised instruction
to the user in a way that a human teller can. This can result in longer wait times if the
user currently using the machine is struggling to complete a transaction.

 Eating a card- Occasionally, ATMs will malfunction and swallow a user’s ATM card.
The customer will then be directed to contact a service number or their bank and wait
for a repair technician to retrieve this card. While this happens only rarely, if it occurs
on a weekend or at night, the user may be left to wait for several days before they can
again use their card, something that would not happen with a human cashier.

 Loss of personal touch with the banks- Last but not the least, customers lose personal
touch with their bankers.

 Cannot be provided in rural areas: In a country like India, where banks are having
large number of rural and non-computerized branches, ATM services cannot be
provided.
 Limitation of cash withdrawals: Again there is a limitation of cash withdrawals from
ATM. For example, many banks do not permit withdrawal of more than 25,000 at a
time.

 Cash deposit facility is not safe: Similarly cash deposit facility is restricted and not
safe as dropping of envelope and ATM is not advisable.

Chapter 4: RESEARCH METHODOLOGY

4.1 MEANING OF RESEARCH:-

Research may be very broadly defined as systematic gathering of data and information and
its analysis for advancement of knowledge in any subject. Research attempts to find answer
intellectual and practical questions through application of systematic methods. Webster’s
Collegiate Dictionary defines research as "studious inquiry or examination; esp:
investigation or experimentation aimed at the discovery and interpretation of facts, revision
of accepted theories or laws in the light of new facts, or practical application of such new or
revised theories or laws". Some people consider research as a movement, a movement from
the known to the unknown. It is actually a voyage of discovery. We all possess the vital
instinct of inquisitiveness for, when the unknown confronts us, we wonder and our
 inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This
inquisitiveness is the mother of all knowledge and the method, which man employs for
obtaining the knowledge of whatever the unknown, can be termed as research.

Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis. D. Steiner and M. Stephenson in the
Encyclopaedia of Social Sciences define research as “the manipulation of things, concepts or
symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art.”

Research is, thus, an original contribution to the existing stock of making for its
advancement. It is the per suit of truth with the help of study, observation, comparison and
experiment. In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research. The systematic approach concerning generalization
and the formulation of a theory is also research. As such the term ‘research’ refers to the
systematic method consisting of enunciating the problem, formulating a hypothesis,
collecting the facts or data, analyzing the facts and reaching certain conclusions either in the
form of solutions(s) towards the concerned problem or in certain generalizations for some
theoretical formulation.

One of the most important aspects of research is the statistics associated with it, conclusion
or result. It is about the “thought” that goes behind the research. Research is conducted with
a purpose to understand:

 What do organizations or businesses really want to find out?

 What are the processes that need to be followed to chase the idea?

 What are the arguments that need to be built around a concept?

 What is the evidence that will be required that people believe in the idea or concept?

Research involves inductive and deductive methods.

Inductive research methods are used to analyze the observed phenomenon whereas,
deductive methods are used to verify the observed phenomenon. Inductive approaches
are associated with qualitative research and deductive methods are more commonly
associated with quantitative research.

4.2 TYPES OF RESEARCH:-

 Basic Research: Basic research is mostly conducted to enhance knowledge. It covers

fundamental aspects of research. The main motivation of this research is knowledge
expansion. It is a non-commercial research and doesn’t facilitate in creating or inventing
anything. For example, an experiment is a good example of basic research.

 Applied Research: Applied research focuses on analyzing and solving real-life

problems. This type of research refers to the study that helps solve practical problems
using scientific methods. This research plays an important role in solving issues that
impact the overall well-being of humans. For example, finding a specific cure for a
disease.

 Problem Oriented Research: As the name suggests, problem-oriented research is

conducted to understand the exact nature of the problem to find out relevant solutions.
The term “problem” refers to having issues or two thoughts while making any decisions.
For e.g Revenue of a car company has decreased by 12% in the last year. The following
could be the probable causes: There is no optimum production, poor quality of a
product, no advertising, economic conditions etc.

 Problem Solving Research: This type of research is conducted by companies to

understand and resolve their own problems. The problem-solving research uses applied
research to find solutions to the existing problems.

 Qualitative Research: Qualitative research is a process that is about inquiry, that helps
in-depth understanding of the problems or issues in their natural settings. This is a non-
statistical research method.
 Qualitative research is heavily dependent on the experience of the researchers and the
questions used to probe the sample. The sample size is usually restricted to 6-10 people
in a manner that one question leads to another. The purpose of asking open-ended
questions is to gather as much information as possible from the sample.
Following are the methods used for qualitative research:
1. One-to-one interview
2. Focus groups
3. Ethnographic Research
4. Content/ Text Analysis
5. Case study research

 Quantitative Research: Qualitative research is a structured way of collecting data and

analyzing it to draw conclusions. Unlike qualitative research, this research method uses
a computational, statistical and similar method to collect and analyze data. Quantitative
data is all about numbers.
Quantitative research involves a larger population as more number of people means
more data. In this manner, more data can be analyzed to obtain accurate results. This
type of research method uses close-ended questions because, in quantitative research,
the researchers are typically looking at measuring the extent and gathering foolproof
statistical data.
Online surveys, questionnaires, and polls are preferable data collection tools used in
quantitative research. There are various methods of deploying surveys or questionnaires.
In recent times online surveys and questionnaires have gained popularity. Survey
respondents can receive these surveys on mobile phones, emails or can simply use the
internet to access surveys or questionnaires.

4.3 RELEVANT OF THE STUDY:-

To access the funds which are kept in the bank at any time is not an easy task but today it is
not at all difficult. A person just has to tell his bank that he wants an ATM card. The bank
issues him an ATM card which is passing coded and could be used by him alone. ATM card
is called by different names like bank card, MAC (Money access card), client card, key card
or cash card, etc. In most cases even debit and credit card could be used. The ATM card
helps the customer to be identified by a plastic ATM card with a magnetic stripe or a plastic
smartcard with a chip. The security is provided by the customer entering a personal
identification number (PIN). Now the person who needs funds when he is taking his family
out of shopping or when he requires funds for an outing it is easily done. If someone falls
very seriously ill the person can remove the funds in the middle of the night too.

The use of ATM is increasing day by day, it is essential to know about the
perceptions of customers about its various aspects and their problems while using an ATM
service. And to find out weak area which needs improvements. Also, that the customers, of
not aware with the schemes and techniques, make them aware and providing better services.
Thus, the need of the study of customer satisfaction and ATM Services provided in
Brajrajnagar town is must due to these reasons. These reasons are crucial for the growth of
people in any country like India. So, it is important to know about the customer satisfaction
in details and how it can be modified to better quality.

4.4 SCOPE OF THE STUDY:-

 The study is confined to Jharsuguda district of Odisha state where only Brajrajnagar
town is considered for survey purpose.
 The study focused on customer satisfaction and ATM services provided in Brajrajnagar
town.
 The number of the respondents taken for the study is 50.

4.5 STATEMENT OF THE PROBLEMS

 When it was first introduced, the ATM was meant to reduce the unnecessary traffic in
the banking hall, make customers have a quick access to their money and make life
convenient to a certain level but the situations changing day by day; it has become a source
of worry to users and providers (banks), because the function it was meant to provide has
been seriously eroded. It has become a money spinner for fraudsters, who have found new
heaven in compromising innocent people’s personal identification numbers (pin). ATM
behavior can change during what is called “stand-in” time, where the bank dispensing the
cash is unable to access databases that contain account information (possibly for database
maintenance), that is, when there is network problem. ATMs at times can also deduct money
from the account without actually dispensing money; these, among others, are the bane of
these money dispensing machines. With all the problems and incompetence of this money
dispensing machine in Brajrajnagar town; it can say it has recorded some success. The level
of satisfaction intended to be provided by these machines is reduced by technological and
processing failures, the perception that the service delivery mode is expensive and the
insecurity regarding standalone ATMs. All these create customer dissatisfaction sometimes.

4.6 OBJECTIVE OF THE STUDY:-

 To study the customer preference towards ATM facility provided by bank.

 To study the awareness level of customer towards ATM facility provided by bank.
 To study the opinion of customers towards the ATM facility provided by bank.
 To study the factors that influences the customer to prefer ATM facility of various
banks.
 To analyse the various problems faced by customers in ATM centres.
 To study the satisfaction level of the customers towards the ATM services of banks.
 To provide suggestions on the basis of the results of the study.

4.7 SOURCES OF DATA COLLECTION:-

To know the response, both secondary and primary data was used.

 Primary data:- A well structured questionnaire was prepared any distributed among
the respondents to collect the primary data. The respondents were asked to answer the
 questions given in the questionnaire. In this study all the questions were interconnected
to each other.

 Secondary data:- Information and data relating to different banking ratios, banking
performance, volume and number of e-banking transactions and facilities, and different
reports and guidelines have been collected from the various annual reports of RBI,
Indian bank’s association and annual reports of selected banks.

4.8 SAMPLE DESIGN:-

In this study, a set of 50 respondents were selected to collect the data with the
applicability of convenient sampling method. Convenient sampling method is a type of non-
probability sampling method where the sample is taken from a group of people easy to
contact or to reach. For example, standing at a mall or a grocery store and asking people to
answer questions would be an example of a convenience sample. Convenient sampling
technique is used for the survey of this project. This is the least reliable design but normally
the cheapest and the easiest to conduct. In this method, researchers have the freedom to
choose whomever they want. Thus the name 'convenient' includes informal pools of
colleagues, friends and neighbours. The surveys are done only in Brajrajnagar town.
4.9 RESEARCH HYPOTHESIS:-

 Hypothesis 1 (H0):- There is no significant difference between age of customer and

ATM location.

 Hypothesis 2 (H0):- There is no significant difference between out of cash and

customer satisfaction in ATM centres.

 Hypothesis 3 (H0):- There is no significant difference between denomination of

currency and customer satisfaction provided by ATM centres.

 Hypothesis 4 (H0):- There is no significant difference between closed ATM and

customer satisfaction during Night
4.10 TOOLS EMPLOYED:-
The primary data were analysed with the help of chi square test, percentage method and
chart.

4.11 LIMITATIONS OF THE STUDY:-

 The survey is done among the respondents of Brajrajnagar town. So the results can be
confined to Brajrajnagar town only and not generalized for the other areas.
 Respondents opinions are dynamic, they keep changing time to time.
 It is a wider topic. It may have different dimensions. However, it is possible that
there will be other factors, which might not have been covered in this study.
 Some respondents did not have properly answered the questionnaire.
 Only Chi square test and percentage methods have been used to find out the results.
 The result and conclusion of the project cannot be generalized in all area of an
organisation.
 There was a shortage of time and resources for the functioning of operation.
 CHAPTERS-5 ANALYSIS AND INTERPRETATION
5.1 MEANING AND FORMULA OF CHI-SQUARE TEST:-
The Chi-Square Test is the widely used non-parametric statistical test that describes the
magnitude of discrepancy between the observed data and the data expected to be obtained
with a specific hypothesis.

The observed and expected frequencies are said to be completely coinciding when the χ2= 0
and as the value of χ2 increases the discrepancy between the observed and expected data
becomes significant. The following formula is used to calculate Chi-square:

Where,
O = Observed Frequency
E = Expected or Theoretical Frequency

∑ = Sum

The computed value of χ2 is compared with the table value of χ2 for a given degree of
freedom and at a given significance level. If the calculated value exceeds the table value,
then the difference between the observed frequencies and expected frequencies is said to be
significant, i.e. it could not have arisen due to the fluctuations in simple sampling.

On the other hand, if the computed value is less than the table value, then the difference
between the observed frequencies and expected frequencies is considered insignificant, i.e.
might have been occurred due to the fluctuations in simple sampling.

5.2 CONDITIONS FOR CHI-SQUARE TEST:-

The following five basic conditions should be met before applying the chi-square test:

1. The observation data must be independent of each other.

2. The data should be expressed in original units and not in percentage or ratio form so that
it can be easily compared.

3. The data must be drawn randomly from the target population.

4. The sample should include at least 50 observations.

5. Every cell must have five or more observations. Each data entry is called a cell. In case,
the observations are less than 5, then the value of χ2 shall be overestimated and will
result in the rejection of several Null Hypothesis.

Thus, the chi-Square test is one of the simplest non-parametric tests in statistical
work where no assumption about the population being sampled is made.

5.3 PROCEDURE OF CHI-SQUARE TEST:-

This approach consists of four steps: (1) state the hypotheses, (2) formulate an analysis plan,
(3) analyse sample data, and (4) interpret results.

(1) State the Hypotheses:- Suppose that Variable A has r levels, and Variable B has levels.
The null hypothesis states that knowing the level of Variable A does not help you predict the
level of Variable B. That is, the variables are independent.

Ho: Variable A and Variable B are independent.

Ha: Variable A and Variable B are not independent.

The alternative hypothesis is that knowing the level of Variable A can help you predict the
level of Variable B.

Note: Support for the alternative hypothesis suggests that the variables are related; but the
relationship is not necessarily causal, in the sense that one variable "causes" the other.

(2) Formulate an Analysis Plan:- The analysis plan describes how to use sample data to
accept or reject the null hypothesis. The plan should specify the following elements.

 Significance level. Often, researchers choose significance levels equal to 0.01, 0.05, or
0.10; but any value between 0 and 1 can be used.

 Test method. Use the chi-square test for independence to determine whether there is a
significant relationship between two categorical variables.
(3)Analyse Sample Data:- Using sample data, find the degrees of freedom, expected
frequencies, test statistic, and the P-value associated with the test statistic. The approach
described in this section is illustrated in the sample problem at the end of this lesson.

 Degrees of freedom.

The degrees of freedom (DF) is equal to if two sample Case

DF (r - 1) * (c - 1)

Where r is the number of levels for one catagorical variable, and c is the number of levels
for the other categorical variable.

Expected frequencies. The expected frequency counts are computed separately for each
level of one categorical variable at each level of the other categorical variable. Compute r * c
expected frequencies, according to the following formula.

Er,c = (nr * nc) / n

where Er,c is the expected frequency count for level rof Variable A and level c of
Variable B, nr is the total number of sample observations at level r of Variable A,
nc is the total number of sample observations at level c of Variable B, and n is the
total sample size.

 Test statistic. The test statistic is a chi-square random variable (Χ2) defined by the
following equation.

Χ2 = Σ [ (Or,c - Er,c)2 / Er,c ]

where Or,c is the observed frequency count at level rof Variable A and level c of
Variable B, and Er,c is the expected frequency count at level r of Variable A and
level c of Variable B.

 P-value. The P-value is the probability of observing a sample statistic as extreme as

the test statistic. Since the test statistic is a chi-square, use the Chi-Square
Distribution Calculator to assess the probability associated with the test statistic. Use
the degrees of freedom computed above.
(4)Interpret Results:- If the sample findings are unlikely, given the null hypothesis, the
researcher rejects the null hypothesis. Typically, this involves comparing the P-value to
the significance level, and rejecting the null hypothesis when the P-value is less than the
significance level.

5.4 APPLICATION OF CHI-SQUARE TEST:-

The applications of χ2-test statistic can be discussed as stated below:
1. Testing the divergence of observed results from expected results when our expectations
are based on the hypothesis of equal probability.

2. Chi-square test when expectations are based on normal distribution.

3. Chi-square test when our expectations are based on predetermined results.

4. Correction for discontinuity or Yates’ correction in calculating χ2.

5. Chi-square test of independence in contingency tables.

5.5 ADVANTAGES OF CHI-SQUARE TEST:-

 Can test association between variables
 Identifies differences between observed and expected values

5.6 DISADVANTAGES OF CHI-SQUARE TEST:-

 Can't use percentages
 Data must be numerical
 Categories of 2 are not good to compare
 The number of observations must be 20+
 The test becomes invalid if any of the expected values are below 5
 Quite complicated to get right - difficult formula
5.7 TABLES, GRAPHS AND CHI-SQUARE TEST AND INTERPRETATION:-
 Chi-square test table used in 3 questions on one method= (n-1)
 Chi-square test table used in 1 question on independent attributes= (r-1)×(c-1)

Table 1: Demographic Profile of the Responded.

Demographic No. of responded Percentage%
Gender:
Male 14 28%
Female 23 46%
Transgender 13 26%
Marital Status:
Married 20 40%
Unmarried 14 28%
Age:
15-30 years 22 44%
31-45 years 28 56%
Above 45years 0 0%
Occupation:
Service 18 36%
Businessman 13 26%
Housewife 09 18%
Student 10 20%
Annual Income
No Income 12 24%
5000-35000 20 40%
35000-70000 14 28%
Above 70000 04 08%
Qualification
10th 10 20%
12th 14 28%
Graduate 19 38%
Post Graduate 05 10%
Other 02 04%
Source: Primary data

Interpretation 1:
From table no 1 it can be said that there are 50 respondents for the questionnaire. 28% are
males while 46% are females. 40% are married while 28% respondents are unmarried. 36%
of the servicemen uses ATM services also 20%students are using ATM services now a days.
Not only businessmen but 18% housewives are also using ATM services. Those who are
earning no income (24%) also uses ATM. While those people whose income is above
70,000(8%) also uses ATM.
TABLE 2. (Q.1):- DO YOU HAVE BANK ACCOUNT?

Bank Account No. Of respondents Percentage

Yes 100 100%

No 0 0%

Source: Primary data

100%

0%

Yes No

Fig 1: Bank Account

Interpretation 2:
From table no.2 and graph no.1 it can be interpreted that all the respondent’s hold an account in

banks. Because of 'zero-balance account ‘almost all the people in India is now having their own

bank account. That is why all the respondents (50) have answered yes for this question.
TABLE 3. (Q.2):- DO YOU USE AN ATM CARD?

Uses of ATM card No. Of respondents Percentage

Yes 100 100%

No 0 0%

Source: Primary data

100%

100%

80%

60%
0%
40%

20%

0%
Yes No

Fig 2: Uses of ATM Card

Interpretation 3:

From above table no 3 and graph no 2 its shows that 100% People now a day’s using ATM

card facility.
TABLE 4. (Q.3):- WHICH BANK'S ATM CARD DO YOU OWN?

Bank ATM Card No. Of respondents Percentage

UCO bank 21 42%

Punjab National Bank 11 22%

Bank of India 04 08%

State Bank of India 14 28%

Source: Primary data

42%

45%
40%
28%
35%
22%
30%
25%
20%
8%
15%
10%
5%
0%
UCO bank Punjab Bank of India State Bank of
National Bank India

Fig 3: Bank ATM Card

Interpretation 4:

From Table no.4 and graph no 3 it can be concluded that mostly people of Brajrajnagar

having account and ATM of UCO bank (42%) and least people have ATM of Bank of India

(08%)
TABLE 5 (Q4) HOW OFTEN DO YOU VISIT YOUR BANK IN A MONTH?

Visit to Bank No. Of respondents Percentage

Never 00 0%

Rarely 21 42%

Sometimes 20 40%

Always 09 18%

Source: Primary data

42%
40%
45%
40%
35%
30% 18%
25%
20%
15% 0%
10%
5%
0%
Never Rarely Sometimes Always

Fig 4: Visit to Bank

Interpretation 5:

From Table no. 5 and graph no. 4 it can be said that almost all the people visit at least once

in a month. There is no one who did not visit ever bank in a month. There are 18%

respondents who visit rarely in a month and 18% respondents visit their bank always during

a month.
TABLE 6 (Q5) HOW OFTEN DO YOU VISIT YOUR NEAREST ATM IN A
MONTH?

H01: There is no significant difference between age of customer and ATM location.
H11: There is significant difference between age of customer and ATM location.

variable 10-25 25-35 35&above Total Percentage Statistical

inference

Never 1 0 0 1 2% X2= 15.86

Df=6
Rarely 5 4 10 19 38%
Tabulated value at
Sometimes 10 5 2 17 34%
5% significance=

Always 7 6 0 13 26% 12.59

H0= Rejected
Total 23 15 12 50 100
H1=Accepted

Source: Primary data

Interpretation 6:

From above table it shows that the calculated value is 15.86 and the tabulated value is 12.59.

Comparing the tabulated value and calculated value we find that calculated value is more

than the tabulated value so null hypothesis (H0) is rejected. Hence there is significant

difference between age of customer and ATM location. It also shows that out of 50

responded, 2% responded says that they never visit nearest ATM, 38% responded says that

they rarely visit nearest ATM,34% responded says that they sometimes visit nearest

ATM,26% responded says that they always visit nearest ATM.

TABLE 7. (Q.5):- HOW MUCH TIME DO YOU SPEND WAITING IN A QUEUE AT ATM?

Waiting Time No. Of respondents Percentage

5-10minutes 21 42%

10-15 minutes 17 34%

15-20minutes 09 18%

More than 20minutes 03 6%

Source: Primary data

42%

45%
34%
40%
35%
30%
18%
25%
20%
15% 6%
10%
5%
0%
5-10minutes 10-15 minutes 15-20minutes More than
20minutes

Fig 5: Waiting Time

Interpretation 7:
From the table 7 and graph no 5 it can be said that people spend their valuable time by

standing in a queue in ATM. Generally, 42% of people spend 5-10 minutes by standing in a

queue. While 6% people spend their quality time of more than 20 minutes by standing in a

queue.
TABLE 8 (Q7) DO THEY RUN OUT OF CASH FREQUENTLY?

H02: There is no significant difference between out of cash and customer satisfaction in
ATM centres.
H12: There is significant difference between out of cash and customer satisfaction in ATM
centres.

Variables No. of respondents Percentages Statistical inference

(n=50)

Never 3 06%
X2= 20.08 Df=3
Rarely 17 34%
Tabulated value at 5%

Sometimes 23 26% significance= 7.815

H0= Rejected
Always 7 14%
H1=Accepted

Source: Primary data

Interpretation 8:
From the table 8 it shows that tabulated value is 7.815 and calculated value is 20.08.By

comparing the tabulated value and calculated value we find that calculated value is more

than the tabulated value. So, null hypothesis(H0) is rejected. Hence, there is significant

relationship between out of cash and customer satisfaction in ATM centres. It also shows

that out of 50 respondents, there are 6% who did not face any out of cash situation at ATM

centres. Also 14% of the respondents always face out of cash situation at ATM centres. But

34% of the respondents rarely face out of cash situation at ATM centres.
TABLE 9 (Q8) DO THE ATMS CENTRES PROVIDE THE DENOMINATION OF
CURRENCY YOU REQUIRE?
H03: There is no significant difference between denomination of currency and customer
satisfaction provided by ATM centres.
H13: There is significant difference between denomination of currency and customer
satisfaction provided by ATM centres.

Variables No. of respondents Percentages Statistical inference

(n=50)

Never 8 16%
X2= 12.4 Df=3
Rarely 14 28%
Tabulated value at 5%

Sometimes 22 44% significance= 7.815

H0= Rejected
Always 6 12%
H1=Accepted

Source: Primary data

Interpretation 9:
From table no.9 we find that the tabulated value is 7.815 and the calculated value is 12.4. so,

calculated value is greater than tabulated value. So, null hypothesis (H0) is rejected. Hence,

there is significant relationship between denomination of currency and customer satisfaction

provided by ATM centres. It also shows that 16% of the respondents never get the

denomination of currency that they want. And 12% of the respondents always get the

denomination of currency that they want. 44% of the respondents sometimes get the

denomination of currency that they want.

Table 10 (Q9) Do the ATMs remain closed during night?

H04: There is no significant difference between closed ATM and customer satisfaction

during Night

H14: There is significant difference between closed ATM and customer satisfaction during

Night

Variables No. of respondents Percentages Statistical inference

(n=50)

Never 19 38%
X2= 9.68 Df=3
Rarely 15 30% Tabulated value at 5%
significance= 7.815
Sometimes 12 24%
H0= Rejected
Always 4 08% H1=Accepted

Source: Primary data

Interpretation 10:
From table no.10 we get tabulated value 7.815 and calculated value 9.68. so, the calculated

value is greater than tabulated value. So, null hypothesis(H0) is rejected here. Hence, there is

significant relationship between closed ATMs and customer satisfaction during night. Also it

shows that 38% of the respondents never get closed ATMs during night while 08% of the

respondents always get closed ATMs during night. 30% of the respondents sometimes get

the closed ATMs during night.

TABLE 11. (Q.10):- ARE YOU SATISFIED WITH SERVICES PROVIDED BY YOUR ATMS?

Services provided by Bank No. Of respondents Percentage

Yes 44 88%

No 6 12%

Source: Primary data

88%

90%
80%
70%
60%
50% 12%
40%
30%
20%
10%
0%
Yes No

Fig 6: Services provided by Bank

Interpretation 11:

From table 11 and graph no 6 we find that, there are 88% of the respondents who are

satisfied with the services provided by their ATM while 12% of the respondents are not

satisfied with the services provided by their ATM centres.

 CHAPTER -6 FINDING, CONCLUSIONS AND
SUGGESTIONS
6.1 FINDINGS:-

 Most probably 46% of females are using ATMs as compared to men. Also, people

between the age group of 15 to 30 years are using ATM more than the people of age

group above 45 years. They do not prefer ATMs. It also shows that around 20% of

students and 80% of housewife are also using ATM services.

 Graph 1:- It shows that hundred percent of the respondents have their bank accounts. This

is because of zero-balance account that has been started by the government of India.

 Graph-2:- It shows that hundred percent of the respondents are using ATM services

nowadays.

 Graph-3:- It shows that 42% of the respondents have their ATM card of UCO bank and

28% of the respondents have ATM cards of State Bank of India. And least 8% of

respondents use ATM card of Bank of India.

 Graph-4:- It shows that there are 42% of people who generally visit to their banks rarely

in a month and 18% of people always visit to their banks in a month. Also there is no one

who does not visit even once to their bank in a month.

 Graph-5:- It shows that around 42% of people spend 5 to 10 minutes standing in a row in

an ATM centres. Also 34% of people spend 10 to 15 minutes standing in a row in an

ATM centres. But 6% of the people spend their more than 20 minutes in standing in a row

in ATM centres.
 Graph-6:- It shows that around 88 percent of people are satisfied with the ATM services

provided in Brajrajnagar town. But 12% of people are not satisfied with their ATM

services provided in Brajrajnagar town.

 Chi square result shows that there is a significant relationship between customer

satisfaction and ATM location, customer satisfaction and out of cash in ATM centres,

customer satisfaction and denomination of currency provided by ATM centres, customer

satisfaction and close ATM centres during night.

6.2 CONCLUSION:-

This study help us to find out the attributes that where proved to provide a perfect model for

predicting customer satisfaction with ATM banking. The performance of ATM banking

attribute(independent variables) and customer satisfaction (dependent variable) identifies

ATM fees charged, ATMs not out of order, cleanliness of ATMs, accuracy of ATM

transactions, is of access to ATMs readable slips, convenient location employee access

ability to solve ATM problems, privacy at ATM stations, employee speed in solving ATM

issues, is of application process for ATM cards and cash availability in ATMs as the key

factor that influence customer satisfaction with ATM banking. Most of the research

conducted on customer satisfaction based on service quality had indicated positive

coexistence of such technologies. This research also indicates that higher number of

respondent was satisfied with type of ATMs they used both in terms of their mode of

operation and access. The construct perceived ease of used and perceived accessibility had

high positive perceptions of the respondents. While the security construct has negative

perception of the respondents. This generally indicates that most of the customers use the
ATMs as a result of its provision of quick access to money and ease of operation but not

mainly on its optimum security. Therefore, it is imperative for bank stakeholders not to

restrict their service quality only on the ease of use and exercise but also to improve their

service quality on security. Also show the study helps us to reveals that the most significant

problems faced by the customers regarding ATM are the out of cash condition and out of

order of the machine. The majority of respondents are fulfilling their cash requirement

through ATM service and they are also happy with the number of ATMs available in your

locality, but most of the respondents are not happy with the transaction cost charged by bank

for ATM service and their mechanism to address the grievances of the ATM customers.

Therefore the banks need to concentrate on addressing the grievances of the ATM customers

through efficient redressal measures to enhance the customer satisfaction.

6.3 SUGGESTIONS:-

The responses obtained from the surveyed respondents were all customers from different

banks holding different ATM cards from different banks. Based on the result obtained from

the analysed data the following suggestions are hereby stated:-

 The banks should deploy the use of search ATMs that are friendly oriented, meaning

those that are made easier to use.

 The banks should also consider replacing ATMs in the public places as an important

strategy to customer satisfaction, which will stimulate is of the access to both ATMs and

finances.

 The banks should not only a science security measures at ATM centres but also monitor

the security operations at the ATM centres.

 They should create more awareness on how to ensure self- security to customers, such as

to stop responding to unnecessary email and text message except otherwise, sharing ping

with others and so on.

 Also banks should check that ATM centres should not be running out of cash.

 Banks should also provide the denomination of currency that the customer require.

 Also the ATM centres should be open at night also.

 To keep a cleanliness and healthy environment inside the ATM centre.

 To have a security guard to help the customers that do not understand the ATM machine.

 Also to find out the problems of the customers by serving their problems faced by them in

ATM centres.

 Try to curb the problems of the customers that they faced during standing in the line

outside the ATM centres.

REFERENCES:-

 Sivakumar M., et al (2017) , “ A study on services quality in ATM service

in Public Sector Banks in Kanchipuram Town,” International Journal of

Economic Research, volume no.- 14, Issue no.- 3, pp- 401-412.

 Vineshkumar S. &. Bhatt B., (2018), “ An Empirical Study on Customer

Satisfaction of ATM Service in Ahmedabad city,” International Journal of

Management and Applied Science, volume no.- 4, Issue no.- 3, pp- 10-15

 Singh S., (2011), “The impact of ATM services on customer satisfaction in

Indian banks,” International Journal of Financial Services Management,

volume no.- 5, issue no.- 2, pp- 177-196

 Meena R.,(2015), “Automated Teller Machine- It’s benefits and

challenges”, International Journal of Commerce, Business and

Management, volume no.-4, Issue no.- 6, pp- 815-821

 Saravanan A., (2017), “ A Study on ATM users of State Bank of India

(SBI) in Salem district”, International Journal of Trend in Research and

Development, volume no.- 38, Issue no.- 6, pp- 5-9

 Renuka R., (2014), “ An analysis of Customer’s loyalty to Banks”,

Research Journal of Finance & Accounting, volume no.- 3, Issue no.- 8, pp-

150-158
 R. Melba Kani et al., (2013), “ Customer satisfaction in Banking Industry”,

International Journal of Marketing Studies, volume no.- 5, Issue no.- 4, pp-

82-95

 Vijay M. Kumbhar, (2011), “An analysis of Customer satisfaction with

waiting times in two-day stage Service Process”, Journal of Operation

Management , volume no.- 9, Issue no.- 3, pp- 324-334

 Ramona Premlatha J. et al.,(2012), “ An Empiricyal Study of ATM

Services Quality & Customer Satisfaction”, European Journal of Social

Science, Volume no.- 13, Issue no.- 3, pp- 345-356

 Sakthivel N.(2008), “ Secured Automatic Teller Machine (ATM) and

Cash Deposit Machine (CDM)”, International Journal of Developing

Country's Studies, volume no.- 2, issue no.- 8, pp-104-109

ANNEXTURE
Table-6
Variable Variable Observed Expected O-E (O-E)square O-E
(Row) (Column) square/E
Never 10-25 1 0.46 0.54 0.2916 0.63391
Rarely 10-25 5 8.74 -3.74 13.9876 1.60041
Sometimes 10-25 10 7.82 2.18 4.7524 0.60772
Always 10-25 7 5.98 1.02 1.0404 0.17398
Never 25-35 0 0.3 -0.3 0.09 0.3
Rarely 25-35 4 5.7 -1.7 2.89 0.50702
Sometimes 25-35 5 5.1 -0.1 0.01 0.00196
Always 25-35 6 3.9 2.1 4.41 1.13077
Never 35above 0 0.24 -0.24 0.0576 0.24
Rarely 35above 10 4.56 5.44 29.5936 6.48982
Sometimes 35above 2 4.08 -2.08 4.3264 1.06039
Always 35above 0 3.12 -3.12 9.7344 3.12
DF= (r-1)( c-1) Chi Square = 15.866
Source: Own Calculation

Table- 8

Variables No of Percentage Expected O-E (O-E)2 (O-E )2/E

Response

Never 3 0.06 12.5 -9.5 90.25 7.22

Rarely 17 0.34 12.5 4.5 20.25 1.62

Sometimes 23 0.46 12.5 10.5 110.25 8.82

Always 7 0.14 12.5 -5.5 30.25 2.42

50 Chi Square = 20.08

Here Df = n-1= 4-1= 3

Source: Own Calculation
Table- 9

Variables No of Percentage Expected O-E (O-E)2 (O-E )2/E

Response

Never 8 0.16 12.5 -4.5 20.25 1.62

Rarely 14 0.28 12.5 1.5 2.25 0.18

Sometimes 22 0.44 12.5 9.5 90.25 7.22

Always 6 0.12 12.5 -6.5 42.25 3.38

50 Chi Square = 12.4

Here Df = n-1= 4-1= 3

Source: Own Calculation

Table- 10

Variables No of Percentage Expected O-E (O-E)2 (O-E )2/E

Response

Never 19 0.38 12.5 6.5 42.25 3.38

Rarely 15 0.3 12.5 2.5 6.25 0.5

Sometimes 12 0.24 12.5 -0.5 0.25 0.02

Always 4 0.08 12.5 -8.5 72.25 5.78

50 Chi Square = 9.68

Here Df = n-1= 4-1= 3

Source: Own Calculation