DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Raja Sekhar Koduru
Designation : Lecturer In CCP
Branch : DCCP
Institute : GPW,Kakinada
YEAR/SEMSTER : VI SEMSTER
Subject : Banking II
Subject Coce : CCP-604(B)
Topic : Customer Facilities Offered By Bank
Duration : 50 Mts
Sub Topic : ATM
Teaching Aids : Power Point & Pictures
CCP604(B).23 1
Objectives:

On completion of this period, you would be

able to explain the
 Concept of ATM
 Working of ATMs
 Various facilities offered by the ATM

CCP604(B).23 2
Known to Unknown

 Have you visited any time ATM and seen the

functions of ATM

CCP604(B).23 3
Automated Teller Machine

 Who is teller?
 Teller is a bank cashier, who is authorized to
allow a customer to withdraw a certain limited
amount from his account without check of
higher officer
 The teller verifies the passbook and photo on
passbook and allows the customer to draw the
money from his account

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Automated Teller Machine
 Since the teller verifies the passbook and
photo, he need not verify and tally the
signature of the customer
 So the withdrawal form need not go to the
higher officer and thus saves time to the
customer

CCP604(B).23 5
Automated Teller Machine

 What is an ATM?

 AUTOMATED TELLER
MACHINE

CCP604(B).23 6
Automated Teller Machine

 Here is a machine that acts as a teller

which works automatically.
 Here the machine allows the customer to
withdraw a certain (limited) amount from
his account.
 Hence it is called Automated Teller
Machine

CCP604(B).23 7
Difference between Teller and ATM

Teller Automated Teller

Machine
He is an Here the machine
employee in the bank allows the customer on
He allows to draw a swapping the debit/credit
certain amount of money card and PIN (Personal
on production of Identification Number)
passbook with photo by It is a machine which
the account holder works automatically

CCP604(B).23 8
Difference between Teller and ATM

Teller Automated Teller

Machine
He works only during It works round the
the banking hours clock
Here the customer
has to visit the bank The customer need
He does not perform not visit the bank
other duties The machine offers
other services
CCP604(B).23 9
Concept of ATM…

 Electronic equipment that allows cardholding

(Debit Card or Credit Card) customers to
perform routine banking transactions….
 without interacting with a human teller is
called an ‘Automated Teller Machine’

CCP604(B).23 10
Concept of ATM…

 The machine is used to render certain

essential banking functions such as..
 Deposit taking
 Cash withdrawal
 Account balance verification etc….
 With the help of a Personal Identification
Number (PIN) system

CCP604(B).23 11
Features of ATM…

Anywhere Banking
 Automatic teller machines can be installed
at any place
 ATMs can be installed at Banks, shopping
centers, offices, airports, railway stations
etc

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Features of ATM…

Anytime Banking
 It offers round the clock banking service to
customers
 Those who are busy in their work and
cannot visit banking during working hours,
they can utilize this facility
 The benefits are innumerable

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Features of ATM…

Anything Banking
 It offers an amazing range of banking services
such as….
 Cash withdrawals
 Balance enquiry
 Deposits
 Funds transfer etc.
at the convenience of the customers

CCP604(B).23 14
Features of ATM…

Safety
 ATM is simply a safe with an electro-
mechanical input and output system
 Which is itself controlled by a fully
electronic user interface

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Features of ATM…

User interface
 Most of the ATMs nowadays use
visual interface aimed at
 Maximizing the speed of the customer
interaction and
 Keeping the language used for the
interaction process as clear as
feasible.

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Features of ATM…

Visual Messages
 The ‘user interface’ of an ATM is designed
to ensure that the minimal required
activities such as…
 Obtaining cash
 Obtaining receipt and
 Retrieving the card etc. are performed
 To facilitate the process of ATM, the
machine is provided with a touch-screen
with user-friendly commands
CCP604(B).23 17
Features of ATM…

Swallowed Card
 Many a time it happens that the customer
forgets to retrieve the card within a certain
seconds of time
 In such cases, the machine ‘swallows’ the
card after a short period
 This would require that the customer applies
to the bank’s central office in order to have
the card returned

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Features of ATM…

ATM SECURITY
 The overriding objective of operating an
ATM is that it should provide for
dispensing the required functions to the
bonafide and authorized user.
 The mechanism should therefore prevent
an unauthorized user of the card from
gaining access to the machine’s
functions.

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Debit/Credit Cards

 DEBIT/CREDIT CARDS..
 These are plastic cards
which are issued by a bank
as the most widely used
payment device.
 Specimen of cards are…..

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Personal Identification Number (PIN)

 The personal identification number is the

code that is used to access the functions of
an ATM
 The PIN is four-digit (XXXX) code that is used
for authenticating and authorizing the use of
ATM facility by a customer.
 The use of PIN entails authorization for the
use of the ATM transactions.

CCP604(B).23 21
Personal Identification Number (PIN)

 The user must keep the PIN secret

 The bank staff cannot know this.
 This is because, as soon as a customer inputs
the PIN into the system, it will be encrypted and
no decryption takes place anywhere in system.
 Furthermore, PINs are generated within a
system by an automatic process;
 They are printed inside the PIN-issuing envelop

CCP604(B).23 22
Personal Identification Number (PIN)

 In order to ensure safe use of the ATM

facility, it is imperative that the secret
code, the PIN, is not revealed to anyone,
anytime
 This way the security hazard involved in
the use of ATM can be prevented
 The PIN must always be remembered
and not written anywhere

CCP604(B).23 23
Personal Identification Number (PIN)

 It is therefore necessary that the use of an

ATM card calls for alertness on the part of
the customer
 Another common problem associated with
the use of ATM card is that the customer
may forget the PIN
 To overcome this malady the customer
may choose a PIN that suggests
something about an important event such
as birthday, marriage day etc.
CCP604(B).23 24
Biometrics

 Biometrics constitute a kind of an

authorization system used in order to
identify the genuine user of a transaction
in an electronic banking environment
 Under this technique, effective customer
authorization takes place on the basis of
the biological attributes of the bonafide
person

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 Biometrics
 A variety of biometrics is used
for identification of the true user.
 They include digitized
thumbprints, face prints, retina
prints etc. which are compared
to the sample record already
stored in the system.

CCP604(B).23 26
Biometrics
 These ATMs are also useful to illiterates.
However, the biggest problem with this type of
mechanism is that it is expensive.
 Data retrieval is very slow since ATM has to
compare the data with pictures.
 Comparison of numbers is very easy but
comparison of pictures will take much time to
retrieve the data.
 Therefore, PIN appears to be most reliable and
easy method to use in the ATM ambience.
CCP604(B).23 27
Summary
 The Debit/Credits cards are used for
various operations in ATMs
 The PIN identifies the genuineness of the
customer
 The biometric ATMs are useful for
illiterates but are costly

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Summary

 ATMs are known for their speed and

convenience giving 24 hours access to bank
customers
 ATMs provide the advantage of accessing
the account of customers anytime,
anywhere

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Quiz
1. What is a PIN?
 Personal Identification Number
3. How many digits consists of PIN
 Four
5. What is the purpose of PIN
 Customer identification
7. How biometric ATM works
 Thumb prints, face prints & retina prints

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Frequently Asked Questions

1. Briefly explain the term ATM.(4 marks)

2. Briefly explain about PIN (4 marks)
3. Briefly explain about Biometric
ATMs.(4 marks)
4. Explain the features of ATM

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