Use of ATMs
Cash Withdrawal and Balance Enquiry
In spite of a number of innovative services being made
available at many ATMs, cash withdrawal stills remains the most accessed
service at ATMs. However, the migration of routine bank transactions like
cash withdrawals and balance enquiries from teller counters to ATMs
significantly raises the potential for savings in employee costs and greater
employee focus on value-added revenue-enhancing activities such as selling
other financial products and advisory services to customers.
Cash /Cheque Deposit
Again, due to the strong cash culture in India, cash
deposits are most likely higher than in other markets, especially cash
deposits made by commercial customers such as retail shopkeepers and those
whose work involves substantial travelling. A high cash withdrawal rate
results in higher ATM servicing costs due to frequent cash replenishment
requirements. Recent developments in ATM technology have made it possible to
recycle cash in ATMs. Currency notes received as cash deposits are counted;
soiled notes separated and deposited cash dispensed to fulfil withdrawal
transactions. However, regulatory concerns relating to identification of
counterfeit notes and its depositors need to be addressed first.
ATM with Cheque deposit facility is not picking up in India, like other
countries. One of the reasons is the delay in collection of the cheque
deposited in ATMs. Cheque deposited in ATMs is to be collected and deposited
in the designated branch for collection. Another reason is the introduction
of cheque deposit Kiosks by various Banks especially Private sector ones.
These are kept at each some important locations/branches where customers can
deposit there cheques which are collected at intervals which may be
difficult in ATMs.
Most utilities have inadequate infrastructure for
receiving bill payments resulting in long queues at collection centres.
Hence, bill payment at ATMs has achieved noticeable acceptance by bank
customers. Most banks provide this service through bi-lateral arrangements
with bill-payment service providers. ATM users register their water,
electricity and telephone utility accounts with banks, check their dues at
ATMs, approve bill payments that are debited to their bank accounts and
receive printed receipts for the transactions. This service has the effect
of improving customer satisfaction for both the bank as well as the
bill-payment service providers. Some Banks’ ATMs even accept charitable
contributions to Temples.
Sale of Paper Based Products
ATMs are ideally suited to sell paper-based products and
services such as tickets, wireless phone recharge cards, financial products,
etc. The screen interface allows browsing and customization, access to bank
accounts facilitate payments and printing capabilities produce the actual
A number of banks including ICICI Bank, SBI and PNB have ATMs at Mumbai’s
local railway stations to dispense season tickets to commuters. Own-bank
customers pay no extra charge while other bank customers pay a fee of Rs. 50
for this extremely useful service of anytime ticket purchase. Railway season
tickets represent a high-volume mass-appeal product. As technical standards
get established and product/service sellers become aware of the ATM sales
channel, niche-appeal high-margin products like entertainment tickets will
join the fray.
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