A Study of Role of Automated Teller Machine (ATM) in Banking System(with reference to core banking system)

Dr. Chhaya Mishra Deepesh Mahajan Faculty Commerce, Faculty Management Shri Cloth Market Girls College, Shri Govind Ram Sakseria Inst. Of Ganesh Ganj, Indore. Mgmt. & Research Indore, 09827249428 drmangalmishra@yahoo.co.in deepeshmahajan@hotmail.com Introduction of the study: The study focuses on the radical changes that latest technological developments has brought and transformed the philosophy of banking. The major success of the impact is reflected in adoption and acceptance of banking system by and large by the society. The latest advertisement campaign in the IDBI Bank “banking for small and big featured by an elephant and bay elephant” is the best example of service motive of banks and their ability to cater the needs of different segments of society. Technology has not only broadened the reach of banks but also it has contributed in the effectiveness and efficiency of operations that can be seen on the boards mentioning the time required by the dealing officer in the requisite services in the branch. The pace of the development and its acceptability is taking the banking industry where there will be no branches of the bank and only computers , mobiles and internet along with the ATM`s will run ,govern and manage the business. Analysis of earlier studies A lot of work has been done on the same topic involving and describing the importance and effectiveness of the Computer Software driven banking and Internet based banking but all the studies which we have seen were moving around the existing systems only. We have made an attempt to see beyond the visible horizon thorough the virtual eyes of technology may be hypnotically seen today but will definitely take a finished form of service. Objective of the Study To find out what is hidden in the futures treasure that my again surprise us in the forthcoming advanced scenario and the reliability of the banking system as well as challenges up front. We have selected as our area of focus is enhancing the utility of ATM`s for printing the Demand Drafts and cheque as well as transferring the funds from one account to another. In this dream system the ATM`s are going to work as Internet Banking interface media between two customers, they may belong to the same bank or other. Research Methodology We have taken the views of more than 20 people who are in the age group of 25-60 people such as Banking/I.T./Business/Doctors/Finance/Senior professional with vast experience in different sectors. Our structured questionnaire has helped us to generate reliable results to give us the confidence in the dreamed system.

Technology Support Required

Internet Banking Environment. ATM Support system. Card (Debit/Credit/Smart) or Log in id and Password support system. Software support system for integrating and interacting within same bank/different banking

environment. The above mentioned pictorial presentation shows that the functioning of the system using possible environment. Functioning of the system The ATM based system will be interactive enough to provide the user enough convenience to print the demand drafts and usage of the account transfer facilities. Presently we are going to focus on the demand draft and cheque printing system through ATM. Present System

The present system as modified from time to time provides the facilities of

Withdrawal, Deposit, Bill Payment, Balance Enquiry, Mini Statement, Pass Book Printing,

Little modification of the present system can enhance its utility as well cut the cost of banks to a higher extent eventually the benefit of which can be transferred to the customers.

Algorithm

Insert Credit/Debit or Smart Card

Insert Your Id or Password

*Transfer to other A/C *Bill Payment *Demand Draft *Investment *Cheque Printing *Recharge

The Result of the above Process comes in the form of Printed D.D. or Cheques as desired by the customer.

The above mentioned system is not limited up to the existing clients of the bank but Debit/Credit/Smart Cards of other banks can also be integrated in to the system which requires supporting environment for the same with technology.

Functioning of Technology & System Design.

Party Name : Amount : Commission : Payment : Credit Card Debit Card Confirm/Print Back

The technology which is presently being used is supposed to be modified for the said purpose for accepting the data base for printing of cheques and drafts. Not much modification on software part is required as in place of cash the ATM is required to print the cheque or demand draft by debiting customers account my be through credit card/ smart card. Cards belonging to other banks or organizations requires authentication of database or conformation which may take slight time but still it can suffice the purpose. Security System The present banking environment uses proper security system to protect it from fraudulent activities and the same system can protect the modified system as said by the Technologists of some leading I.T. companies to whom we discussed the same. Feasibility All the I.T. Professionals agreed on the fact that the above system can be developed with a little modification of the existing system resulting in slight increase on the cost side my be 8 to 10 % but the embedded benefits of the system will result in huge saving in time and cost of the bankers ultimately resulting in decrease in operational costs. All what is required for the banker is to put the cheques and drafts in the machine as they put cash depending on the requirement of the clients. Such services may be put under extra charges for early recovery of the input cost and at those places where such services are in high demand.

Features of the system

Time saving for banker as well as customer, User friendly, Cost efficient for banks, Faster processing, Freedom for carrying cash, cheque books, Freedom from filling slips, Freedom from visiting branch, Many banking activities can be performed by single log in, Freedom from maintaining proof as counter foil of slips, Chances of errors are lesser as customer gets an opportunity of print preview. The automated software system maintains all records so banker’s job of recording the transaction is

not required. Limitations

System failure, power problems causes threat though the counter measures are available with banks. At remote places problem of connectivity at initial level may be a cause of concern as well as the

safety and security of the system. Literacy problems is a stumbling block. Card recognition problems specially belonging to other banks. Frequent use of currency and stationary may leave the ATM empty.

_____________