CHAPTER- 4 GROWTH AND EXTENT OF ELECTRONIC BANKING SERVICES IN INDIA

4.1 E-banking Services through Websites of the Banks 4.2 Sample Description 4.3 Sample Period 4.4 Key Electronic Banking services 4.5 Analysis of Electronic Banking Services 4.6 Conceptual Framework of ATM's 4.7 Kinds of ATMs 4.8 Reasons for Adoption of ATMs for the Customers and the Banks 4.9 Growth of Onsite and Offsite ATMs in Indian Banking Sector 4.9.1 Onsite and Offsite ATMs of Nationalized banks 4.9.2 Onsite and Offsite ATMs of SBI Group 4.9.3 Onsite and Offsite ATMs of Old Private Sector Banks 4.9.4 Onsite and Offsite ATMs of New Private Sector Banks 4.9.5 Onsite and Offsite ATMs of Foreign Banks 4.10 Percentage of ATMs to Branches 4.10.1 Nationalized Banks 4.10.2 State Bank Group 4.10.3 Old Private Sector Banks 4.10.4 New Private Sector Banks 4.10.5 Foreign Banks

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CHAPTER-IV GROWTH AND EXTENT OF ELECTRONIC BANKING SERVICES IN INDIA A number of services are being offered through electronic banking. It is quite difficult to measure the extent of such services, but an effort has been made by classifying these services into two categories. Firstly, to judge the impact of e-banking through different websites, services being offered by the banks have been categorized into informational and transactional services. Secondly, the extent of these services has been measured through ATM services offered by the banks. The study takes into consideration all the public, private, SBI and nationalized banks to know the extent of ebanking services. Hence, the chapter is divided into two parts: Part-I analyzes the extent of e-banking through website analysis; and Part-II throws light upon the growth of ATM industry in India. The data for the purpose of this study relates to the period 2003-04 to 2007-08. Part-I 4.1 E-banking Services through Websites of the Banks The website technology has totally transformed the banking business. The success of Internet banking depends upon the well designed website of a bank. It needs to be informative and functional. So, the basic aim of a website is to make the electronic banking services more functional, desirable, accessible and consumer friendly. Internet banking can be provided by the banks in two ways. Firstly, an existing bank with its physical offices can establish a website and offer the internet banking services as an additional delivery channel. Secondly, the facility of e-banking can be provided solely through the internet without having any physical office. The following diagram highlights that accessibility, speed, navigability and content are the important factors which make a website effective in its use.

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Figure 4.1 Website Quality Assessment Model

Source: Mirando and Cortes (2006) It is evident from the above diagram, if the website is easily accessible by its users, it can increase its quality. The speed of a website enables its users to make their transactions within a reasonable time. The linking of the website with another page is called navigability. Each page of the website should be self-sufficient and provide link to the main contents. Poor web design will result into loss of users. Further, content means that website must have that required potential which satisfies the need of the customers. The website of a bank carries various features like product information, services provided, information on location, contacts of the bank, history of the bank, security issues, information regarding operation of different services, and details of various transactions. On the basis of these features, a website can be classified into two categories: a) Informational websites b) Transactional websites (a) Informational Websites: Informational websites provide the general information about the bank and its products. On such websites, customers can access all kinds of information but they cannot transact. (b) Transactional Websites: These websites enable the customers to conduct any transaction through the website of the bank. The website provides a wide range of services to the customers. These services are classified into wholesale banking, retail e-banking services, personal banking, etc. Some retail and wholesale e-banking services are commonly offered by all 83

the financial institutions on their websites. The banks offer retail services like account management, bill payment , new account opening, investment/ brokerage services, loan application and approval, account aggregation, etc. Wholesale services include cash management, small business loan applications, business to business payments, employee benefit/ pension administration, etc. However, the services provided through transactional websites are more risky than informational websites. The reason being that transfer of money is involved in it. So, the following measures are effective to curtail such a risk: Security control for safeguarding customer information. Liability for unauthorized transactions. Losses from fraud, if the institution fails to verify the identity. Security from violation of rules and regulations. The present study is based upon two considerations; firstly, only those banks which are providing services through transactional websites have been selected for the study; and secondly, the extent to which these services are being provided by the banks. The purpose of this chapter is to fill significant gaps related to electronic banking in India. For the fulfillment of gap, a survey was conducted on the websites of banks to determine the number of electronic banking services provided by the banks. To study the extent of e-banking services, an attempt has been made to conduct ranking of electronic banks, so that an approach can be developed to assess which of the banks are providing qualitative services to the customers. 4.2 Sample Description This section describes the sample of the study. The sample consists of 45 banks operating in India after 31 March, 2006. The banks were selected on the following basis: 1. Both Public (Nationalized and SBI group) and Private (new and old) sector banks have been taken into account. 2. Only the banks operating as on 31st March, 2006 have been considered. The banks which merged in other banks are, therefore, not included. 3. Further, only the banks with transactional websites have been analysed. Banks having informational websites are not taken into consideration. 4. Electronic banking services mainly include retail services offered to customers. 5. The websites of certain banks could not be found, and hence, are treated as nonelectronic banks.

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4.3

Sample Period To study the extent of electronic banking services the banks from both the public

and private sectors have been selected on the basis of their transactional websites. The websites of banks were explored during the month of June, 2008 to analyze the extent of e-banking services and products offered by various banks. The websites of all these banks were analyzed during this period. In India, as there is no special type of reporting requirement for electronic banks and no compiled data is available for this purpose, so an attempt has been made to conduct the analysis of bank websites within a stipulated period of time. In addition, personal contact was also made with bank employees to know about the services provided by various banks. Table 4.1 provides the details about the number of public and private sector banks taken up for the study. The table reveals that out of the 50, 28 banks are from the public sector and the remaining 22 banks represent the private sector. The table further explains that only 45 banks are providing electronic banking services which include 27 public sector banks and 18 private sector banks. It is pertinent to note that only those banks have been considered for the studies which are providing transactional website services to their customers. The banks providing only informational websites have not been taken into account. Table 4.1 Number of Electronic banks Bank Private Sector Banks New Old Public Sector Banks SBI Nationalised Other Public Sector All Number of Banks 22 7 15 28 8 19 1 50 Number of Electronic Banks 18 7 11 27 8 18 1 45

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4.4

Key Electronic Banking Services For the purpose of extent of e-banking services, 48 services have been

considered. These have been divided into four major categories, i.e., internet banking, phone banking, mobile banking, and ATM. Table 4.2 give a brief description of these services. Table 4.2 Key Electronic Banking Services Service Code 1 Balance statement 2 Transaction history Online transfer of funds Card to card fund transfer Pre paid mobile recharge Buy and sell Mutual Fund Send money order anytime Electronic Banking Services enquiry and Check out transaction in bank account with a real time balance. Check out past transaction from the date of account opening. 3 Transfer of funds to any bank account of that particular bank or any other bank. 4 Transfer of funds having visa, debit card holders or credit card holders. 5 Recharge pre-paid mobile online anywhere, anytime in a few minutes. 6 7 Online buying and selling of mutual fund. Get it door delivered to any destination in India. 8 Open Fixed deposit and Apply online to fixed deposit and recurring Recurring deposit 9 Request of Cheque book Stop Payment request Request of Debit cards Monthly Bank account statement by E-mail 13 ATM/Debit Card deposit. The cheque is delivered on the address upon request. 10 Issue instructions to stop payment of a particular cheque. 11 12 Apply online ATM/Debit card. Free statement of bank account on e-mail address. current ATM/ Debit Card. Definition

Reissue and upgrade of Get ATM / debit card reissued or upgrade

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14

Link

bank

account

to Link multiple bank accounts to a single ATM/ Debit Card.

ATM/Debit Card 15 Renewal/ closure of FD/ RD 16 Debit Card 17 Change Password Demat holdings Loan Details

premature Renew current FD account or request its premature closure.

Deactivate/ Activate ATM/ Activate/deactivate ATM/ Debit Card. Change of log-in password and transaction password. Provide to demat account details and transactions. View details related to loan account like type of loan, date of sanction, date of maturity, rate of interest. Interest rate updates Bills Payment Know rate of interest on deposit and loan scheme. Paying of bills of utility (electricity and telephone), Online shopping Ticket Booking Mobile Top-up Share Trading Pay bank credit, bills mobile bills, internet insurance premium.

18

19

20

21

22

e-shopping

through

banking. 23 24 Booking of railway or air-ticket online. Recharge pre paid mobile anytime, anywhere by log in to internet banking. 25 Trade in security market online, through the unique three-in-one account that integrate banking, broking and demat account. 26 Online tax payments Convert to EMI Online payment of service tax, income tax, central excise duty. 27 Converting any transaction above Rs.2000 on a credit card into easy EMI. EMI repayments are easiest and provide tenure ranging between 3 to 24 months. 28 Online loans Get loans as fast as you click.

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29

Customer Correspondence Demonstration banking of

E-mail correspondence between customer and bank for transaction queries.

30

I- Provide demonstration of internet banking services on banks website Internet customers banking services to corporate

31

Corporate Internet Banking

Phone Banking Services 32 Enquire balance 33 Statement of Account Request for Fund Transfer your Account Get the details of savings, current and fixed deposit account balance. Get cheque book or latest account statement delivered at your door step. 34 Transfer money from one account to another. Both accounts must be linked to customer ID. 35 Stop Mobile Registration 37 Latest Interest Exchange Rates cheque payment Stop payment of a single cheque or series of cheques, 24 hours a day. Banking Get registration for mobile banking through phone banking. and Get latest interest rates on deposits and foreign exchange rates by talking to phone banker. Mobile Banking Services 38 Account Balance Making Payment Details balance Loan Information I-Mobile of credit Get information of updated balance without using internet or phone banking. 39 Make payment of all bills via mobile banking. 40 card Knowing the credit card balance without making a phone call or logging on the internet. 41 Mobile banking for loans avails for loan documents via mobile phone. 42 All internet banking transactions can be done on mobile phone. instructions 36

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43

Purchase and Redemption Buying, selling and redemption of mutual of Mutual Fund units fund units. One can check the balance of last three transactions. ATMs 24 hours access to Cash Transfer accounts fund Any time withdrawal of cash. another account in the same branch. and current balance. Change the personal identification number of ATM/ debit card. Last three transactions

44

45 46

between Transfer of funds from one account to

47

View account balances and Can view minimum last three transactions mini statement Pin change option

48

4.5 Analysis of Electronic Banking Services: Each bank offers a variety of e-banking services varying from balance inquiry to pin change option. The following table exhibits the electronic banking services offered by all the banks under study in percentages.

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Table 4.3 Transactional Services Offered by Electronic Banks (Per cent of banks offering electronic services) Electronic Banking Services All SBI All 100.0 100.0 100.0 11.1 25.9 11.1 0.0 29.6 100.0 40.7 15.5 75.5 8.8 14.8 100.0 0.0 15.7 0.0 42.1 100.0 57.8 21.0 100.0 0.0 36.8 15.7 100.0 0.0 0.0 0.0 0.0 0.0 100.0 0.0 0.0 100.0 0.0 100.0 100.0 100.0 100.0 100.0 Nationalized Group All 100.0 100.0 94.4 11.1 11.1 16.6 11.1 38.8 72.2 55.5 16.6 38.8 22.2 New 100.0 100.0 100.0 28.5 28.5 42.8 28.5 85.7 100.0 85.7 42.8 71.4 57.1 Old 100.0 100.0 90.9 0.0 0.0 0.0 0.0 9.0 54.5 36.3 0.0 18.8 0.0 Banks Balance enquiry and statement Transaction history Online transfer of funds Card to card fund transfer Pre paid mobile recharge Buy and sell Mutual Fund Send money order anytime Open Fixed deposit and Recurring deposit Request of cheque book Stop Payment request Request of Debit cards Monthly Bank account statement by E-mail Reissue and upgrade of ATM/debit card
(Contd.)

Service

Public Sector Banks

Private Sector Banks

Code 100.0 100.0 97.7 11.1 20.0 13.3 8.8 33.3 88.8 46.6

10

11

12

13

90

Table 4.3 ( Contd.)

14 Card Renewal/ premature closure of FD/ RD Deactivate/ Activate ATM/ Debit Card Change Password Demat holdings Loan Details Interest rate updates Bill Payment Online shopping Ticket Booking Mobile Top-up Share Trading Online tax payments Convert to EMI Online loans Customer Correspondence Demonstration of I-banking Corporate Internet Banking 42.2 37.0 52.6 0.0 50.0 57.1 45.4 2.2 11.1 95.5 66.6 66.6 26.6 15.5 18.5 29.6 96.2 0.0 7.4 100.0 77.7 37.7 40.7 24.4 18.5 64.4 59.2 84.2 21.0 15.7 26.3 42.1 94.7 0.0 10.5 100.0 68.4 26.6 22.2 31.5 26.6 22.2 31.5 26.6 22.2 31.5 0.0 0.0 0.0 100.0 12.5 100.0 0.0 0.0 100.0 0.0 0.0 100.0 100.0 95.5 100.0 100.0 100.0 88.8 33.3 33.3 33.3 72.2 33.3 33.3 11.1 22.2 22.2 5.5 16.6 88.8 50.0 100.0 42.8 28.5 42.8 100.0 57.1 42.8 28.5 42.8 28.5 14.2 28.5 100.0 71.4 81.8 27.2 36.3 27.2 54.5 18.1 27.2 0.0 9.0 18.1 0.0 9.0 81.8 36.3 11.1 0.0 0.0 0.0 27.7 71.4 0.0 15.5 14.8 21 0.0 16.6 42.8 0.0

Link bank account to ATM/Debit

8.8

0.0

0.0

0.0

22.2

57.1

0.0

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

91

Table 4.3 ( Contd.)

Phone Banking Services Enquire your Account balance Statement of Account Request for Fund Transfer Stop cheques Payment instructions Mobile Banking Registration Latest Interest and Exchange Rates Mobile Banking Services Account Balance Making Payment Details of credit card balance Loan Information I-Mobile Purchase and Redemption of Mutual Fund units Last three transactions ATMs 24 hours access to Cash Transfer fund between accounts View account balances and mini statement Pin change option 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 53.3 40.7 57.8 0.0 72.2 85.7 63.6 4.4 0.0 2.2 0.0 6.6 0.0 13.3 14.8 21.0 0.0 0.0 0.0 11.1 7.4 10.5 53.3 40.7 57.8 0.0 0.0 0.0 0.0 0.0 0.0 72.2 16.6 11.1 16.6 5.5 11.1 85.7 42.8 28.5 28.5 14.2 28.5 63.6 0.0 0.0 9.0 0.0 0.0 15.5 7.4 10.5 0.0 17.7 22.2 31.5 0.0 11.1 27.7 22.2 22.2 31.5 0.0 22.2 20.0 18.5 26.3 0.0 22.2 42.8 57.1 14.2 42.8 37.7 33.3 47.3 0.0 44.4 71.4 40.0 37.0 52.6 0.0 44.4 71.4 27.2 27.2 9.0 0.0 9.0 18.1

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

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E-banking provides a number of services at the doorstep of customers which is otherwise not possible. These services are provided through bank websites. Table 4.3 shows that e-banking services are offered to the customers in the form of internet banking services, phone banking, mobile banking and ATM services. Internet banking services are provided to a large extent by all the banks. The most common services among internet banking are balance inquiry and transaction history. All the banks are offering these two services. Apart from these, ATM services are also offered by all the banks. These include 24 hours access to cash, transfer fund between accounts, view account balances & mini statement and pin change option. Among other services, most of the banks offer simple transaction of e- banking which includes online transfer of funds (97.7 per cent), change password (95.5 per cent), customer correspondence (95.5 per cent), request of cheque book (88.8 per cent), bill payment (64.4 per cent), and monthly bank account statement by e-mail (75.5 per cent). However, the services like online tax payments (66.6 per cent), demonstration of Ibanking (66.6 per cent), stop payment request (46.6 per cent) and corporate internet banking (42.2 per cent) should also be provided by all the internet banks are having less adoption in all the banks Other internet banking services which are less offered include open fixed deposit and recurring deposit (33.3 per cent), ticket booking (37.7 per cent), demat holdings (26.6 per cent), loan details (26.6 per cent), interest rate updates (26.6 per cent), share trading (26.6 per cent), request of debit cards (15.5 per cent), renewal / premature closure of FD (15.5 per cent), mobile top-up (15.5 per cent), buy and sell mutual fund (13.3 per cent), card to card fund transfer (11.1 per cent), online loans (11.1 per cent), send money order anytime (8.8 per cent), reissue and upgrade of ATM/ debit card (8.8 per cent), link bank account to ATM/ debit card (8.8 per cent) , convert to EMI (2.2 per cent). So, from the above analysis, it is clear that there are number of internet banking services, but the banks are providing only a few. As far as phone banking is concerned, it has been found that 40% banks provided enquire your account balance and 37.7% banks offered statement of account services during the period under study. These services are offered in a limited manner by the banks because the customers can avail such services through ATM also. The banks consider that providing the same services through two different modes, i.e., phone banking as well as ATM means extra financial burden only. The other phone banking

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services availed less by the customers include stop cheques payment instruction (22.2%), request for fund transfer (20%), mobile banking registration (17.7%) and latest interest & exchange rates(15.5%). In mobile banking services, 53.3% banks provide account balance & last three transaction services. Services like details of credit card balance (13.3%), making payment (11.1%), loan information (6.6%), purchase and redemption of mutual fund units (4.4%) and Internet mobile (2.2%) are offered to a limited extent by all the banks. The online transfer of fund facility is provided by all the banks under study but to a varying degree, i.e., 100 per cent in the case of both the public and new private sector banks, 94.4 per cent in private sector banks, 90.9 per cent in old private sector banks, and 100 per cent in SBI and nationalised banks case. As far as online bill payment is concerned 72.2 per cent private sector banks and 59.2 per cent public sector banks are offering this facility which comprises of 54.5 per cent old private sector banks and all new private sector banks, and in the public sector all banks of SBI group and 84.2 per cent of nationalized banks are offering it. Similarly, the facility of request for cheque book through e-banking is provided by 72.2 per cent private sector banks comprising 54.5 per cent old private sector banks and 100.0 per cent new private sector banks. However, all the nationalized and SBI group banks in the public sector are offering the request for cheque book services. As far as password change services are concerned 88.8 per cent private sector banks and 100.0 per cent public sector banks are providing them. Customer correspondence services are offered by 100 per cent public sector banks and 88.8 per cent private sector banks. Similarly the monthly bank account statement by e-mail is provided by 100 per cent public sector banks and 88.8 per cent private sector banks. As many as 96 per cent of public sector banks offer online tax payment and 30 per cent offer share trading as compared to 22.2 per cent each in the case of private sector banks. However, the private sector banks leading in number of services like buy and sell mutual fund (16.6%) , request of debit cards (16.6%), reissue and upgradation of ATM/ debit cards (22.2%) , activate/ deactivate ATM/ debit cards (27.7%) , demat holding(33.3%) , loan details (33.3%), online loans (16.6%) etc. In all these services the share of public sector banks is very less. In the case of all the phone banking and mobile banking services, private sector banks are leading except in details of credit card (14.8%) in case of public sector . It is pertinent to note that not even a single bank of SBI group providing either phone banking or mobile banking services during the period 94

under study. This shows that having the largest asset based structure in public sector banks, still the State Bank of India and its subsidiaries are not offering phone and mobile banking services. The reason being that these banks are having large number of branches and the cost of IT is very high. Even if the banks have started adopting the e-banking services but the rate of adoption by all these branches is very slow. There are number of services where public sector banks are leading. These include monthly banks account statement by e-mail, change password, ticket booking, share trading, online tax payment, customer correspondence, and demonstration of I- banking. The research shows that as compared to private sector banks, public sector banks are offering more services for the social welfare of public rather than business-oriented and profit making. The service like tax payment increases the government revenue on one hand, and fulfils the corporate social responsibility on the other. All the banks are at different stages of offering e-banking services so the extent of services is also different. In order to acquire the new customers as well as to retain the existing one, banks are very much cautious about E-banking services. Banks should develop such kind of services through which customer can transact from anywhere, anytime. In some of the services like balance enquiry, transaction history, transfer of funds online, ATM services; all the banks are offering excellent services to the customers. Banks are also offering these services according to their suitability like differentiation between corporate customers and retail customers. But such differentiation is only in case of offering internet banking services. However mobile banking services, phone banking services and ATM services are offered in the same manner to all kind of customers. It is worthwhile to note that banks should encourage existing and new customers in order to make e-banking services popular among customers. But all the services are not offered in the same extent by all the banks. Banks lag behind in offering the services such as demat holding, loan details, interest rate updates, share trading, buying and selling of mutual fund, request for the debit cards etc. As the electronic banking services are recently started by all the banks, so banks can expand these services so as to make the customer more satisfied A part from balance enquiry, transaction history, ATM services ; private sector banks are offering more advanced electronic banking services like online shopping, online loans, demat holding, loan details, mobile top-up, buy and sell of mutual fund, card to card transfer , mobile banking, phone banking services to its customers. However 95

public sector banks are leading private sector in fund transfer, online bill payment, request for cheque book, online tax payment, share trading, customer correspondence and monthly bank account statement. All the banks are trying their best to offer electronic banking services, so that customers can easily cope up with new technology products. Figure 4.2 Range of Electronic Banking Services
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Pin change option View account balances and mini statement Transfer fund between accounts 24 hours access to Cash ATMs Last three transaction Purchase and Redemption of Mutual Fund units I-Mobile Loan Information Details of credit card balance Making Payment Account Balance Mobile Banking Services Latest Interest and Exchange Rates Mobile banking Registration Stop cheque Payment instructions Request for fund Transfer Statement of Account Enquire your Account-balance Phone banking Services Corporate Internet Banking Demonstration of I-banking Customer Correspondence Online loans Convert to EMI Online tax payments Share Trading Mobile Top-up Ticket Booking Online shopping Bills Payment Interest rates updates Loan Details Demat holdings Change Password Deactivate/ Activate ATM/ debit card Renewal/ premature closure of FD/ RD Link bank account to ATM/debit Card Reissue and upgrade of ATM/debit card Monthly Bank account statement by E-mail Request of Debit cards Stop Payment request Request of Cheque book Open Fixed deposit and Recurring deposit Send money order anytime Buy and sell Mutual Fund Prepaid mobile recharge Card to card fund transfer Transfer funds online Transaction history Balance enquiry and statement 0 20 40 60 80 100 120

Series1

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The banks offer wide range of electronic banking services from balance enquiry to pin change option. Figure 4.1 depicts the range of electronic banking services offered to the customers. Table 4.4 Bank-wise Electronic Banking Services

In this section an attempt has been made to rank the electronic banking services
on the basis of extent of electronic banking services. Table 4.4 shows the electronic banking services offered by different banks along with the name used by banks for these services. Table 4.5 shows the extent of electronic banking services and ranks of ebanking services on the basis of extent of e-banking services. Service Electronic Name of Code Banks Internet Banking State Banks Services and its Subsidiaries State Bank of OnlineSBI 1 India State Bank of 2 Bikaner and SBBJOnline Jaipur State Bank of OnlineSBH 3 Hyderabad State Bank of OnlineSBIndore 4. Indore State Bank of OnlineSBM 5. Mysore State bank of OnlineSBP 6 Patiala State Bank OnlineSBS 7. Saurashtra State bank OnlineSBT 8. Travancore Nationalized Banks Allahabad Bank ALLNET 9. Andhra Bank ABINFI-net 10. Bank of Baroda i-bob 11. 12. 13. Bank of India Bank of Maharastra Star Connect Maha Connect Electronic Banking Services

1,2,3,9,12,17,21,22,23,26,29,30,45,46,47,48 1,2,3,9,12,17,21,23,26,29,30,45,46,47,48 1,2,3,9,12,17,21,26,29,30,45,46,47,48 1,2,3,9,12,17,21,26,29,30,45,46,47,48 1,2,3,9,12,17,21,26,29,30,45,46,47,48 1,2,3,9,12,17,21,26,29,30,45,46,47,48 1,2,3,9,12,17,21,26,29,30,45,46,47,48 1,2,3,9,12,17,21,26,29,30,45,46,47,48 1,2,3,8,9,12,15,17,21,26,29,31,45,46,47,48 1,2,3,9,17,21,23,26,29,31,45,46,47,48 1,2,3,9,12,17,20,21,26,32,34,38,44,45,46,47 ,48 1,2,3,9,12,17,18,20,21,25,26,29,30,31,45,46 ,47,48 1,2,3,5,8,9,10,11,12,17,19,20,21,24,25,26,2 8,29,30,32,33,34, 35,36,38,44,45,46,47,48

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14.

15. 16. 17. 18. 19. 20. 21

22 23 24 25 26 27

28

29

30

31 32.

1,2,3,5,8,9,10,11,12,17,19,20,21,24,25,26, 28,29,30,31,32,33,34,35,36,38,44,45,46, 47, 48 Central Bank of CBI net banking 1,2,3,9,12,17,21,26,29,32,33,38,44,45,46, India 47,48 Corporation Corp Net 1,2,3,4,5,9,10,11,12,17,21,22,26,29,30,31, Bank 32,33,36,38,39,40, 45,46,47,48 Dena Bank Dena Connect 1,2,3,5.6,9,17,18,24,26,29,30,31,32,33,36, 38,40,45,46,47,48 Indian Bank India Net Bank 1,2,3,5,9,10,11,17,21,25,23,26,29,31,32,33, 35,38,44,45,46,47,48 Indian Overseas E-See Banking 1,2,3,9,17,19,21,22,25,29,30, 45,46,47,48 Bank Oriental Bank i-banking 1,2,3,9,10,17,21,26,29,32,33,35,38,44,45,46 of Commerce ,47,48 Punjab National Internet 1,2,3,4,5,8,9,10,12,17,21,22,24,25,26,29,30, Bank Banking 31,32,33,34,35,36, 37,38,40,44,45,46,47,48 Syndicate Bank Syndicate E1,2,3,9,10,17,18,19,20,21,23,26,28,29,30,45 Banking ,46,47,48 Uco Bank Uco e-banking 1,2,3,6,8,9,10,12,17,19,21,26,29,30,45,46,4 7,48 Union Bank of Union e1,2,3,8,9,10,12,15,17,18,,21,25,26,29,30,31, India banking retail 45,46,47,48 United Bank of UBI Internet 1,2,3,9,17,18,26,29,30,31,38,39,44,45,46, India Banking 47,48 Vijaya Bank V net Banking 1,2,3,8,9,10,15,17,19,26,29,30,45,46,47,48 IDBI Bank BANKAWAY 1,2,3,4,5,6,8,9,10,12,15,17,18,20,21,22,23,2 4,25,26,29,30,32, New Private 33,34,35,36,37,38,39,40,44,45,46,47,48 Sector Banks ICICI Bank INFINITY 1,2,3,4,5,7,8,9,10,11,12,13,14,15,16,17,18,1 9,20,21,22,23,24,25,26,27,28,29,30,31,32,3 3,34,35,36,37,38,39,40,41,42,44,45,46, 47,48 HDFC Bank Net Banking 1,2,3,4,5,7,8,9,10,11,12,13,14,15,16,17,18,1 9,20,21,22,23,24,25,26,27,28,29,30,31,32,3 3,34,35,36,37,38,39,40,41,43,44,45,46, 47,48 Kotak Internet 1,2,3,6,8,9,10,11,12,13,14,15,16,17,18,20,2 Mahindra Bank Banking 1,22,25,29,30,31,32,33,34,35,37,38,43,44, 45,46,47,48 Indusind Bank IndusNet 1,2,3,6,8,9,10,12,13,14,16,17,21,29,38,44, 45,46,47,48 Axis Bank iConnect 1,2,3,9,10,12,17,18,21,22,23,29,30,31,32,3, 38,39,44,45,46,47,48 Yes bank Development Credit Bank Yes@ccess 1,2,3,6,8,9,17,21,29,30,45,46,47,48 1,2,3,8,9,10,16,17,21,29,32,33,35,38,44,45, 46,47,48

Canara Bank

CNet-banking

33. 34.

98

35. 36. 37. 38.

Old private Sector Bank Bank of Rajasthan City Union Bank Dhanluxmi Bank Federal Bank Ing Vyasa Bank

RajBank@Net service OnlineCub.net Web Banking Fed Net mi-b@nk

1,2,3,9,17,18,21,23,25,29,45,46,47,48 1,2,3,9,17,21,29,32,33,34,45,46,47,48 1,2,17,29,32,33,37,38,44,45,46,47,48 1,2,3,9,10,12,17,18,20,21,22,23,29,31,32, 33,37,38,44,45,46,47,48 1,2,3,8,9,10,12,17,19,21,29,30,31,45,46,47, 48 1,2,3,9,17,20,29,38,44,45,46,47,48 1,2,3,9,10,17,18,19,20,21,22,23,26,29,30,31 ,38,44,45,46,47,48 1,2,3,17,19,29,30,31,38,41,44,45,46,47,48 1,2,3,8,9,10,12,17,19,21,26,29,30,31,45,46, 47,48 38,44,45,46,47,48 38,44,45,46,47,48

39. 40. 41. 42 43 44

J & K Bank Net Banking Karnataka Bank Money Clicktm Karur Vyasa Bank South Indian Bank Tamilnadu Mercantile Bank Catholic Syrian Bank SBI Commercial and International Bank Lakshmi Vilas Bank Internet Banking Sibernet Retail X

45. 46

X N.A

47.

N.A

99

Table 4.5 Ranking of Electronic Banks on the Basis of Extent of Electronic Banking Services

Electronic Banks A Public Sector banks SBI Group 1 2 3 4. 5. 6 7. 8. State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank Saurashtra State Bank Travancore Nationalized Banks 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21 22 23 24 25 Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab National Bank Syndicate Bank Uco Bank Union Bank of India United Bank of India

Extent (in Per cent)

Rank

33.33 31.25 31.25 31.25 31.25 31.25 31.25 31.25 33.33 29.17 41.67 37.5 62.5 64.5 35.4 56.25 45.8 45.8 31.25 37.5 64.5 39.5 37.5 41.67 35.4

14 15 15 15 15 15 15 15 14 16 10 12 6 5 13 7 9 9 15 12 5 11 12 10 13

100

26 27 B.

Vijaya Bank IDBI Bank Private Sector Banks New private Sector Banks ICICI Bank HDFC Bank Kotak Mahindra Bank Indusind Bank Axis Bank Yes Bank Development Credit Bank Old Private Sector Bank Bank of Rajasthan City Union Bank Dhanluxmi Bank Federal Bank Ing Vyasa Bank J & K Bank Karnataka Bank Karur Vyasa Bank South Indian Bank Tamilnadu Mercantile Bank Catholic Syrian Bank SBI Commercial and International Bank Lakshmi Vilas Bank

33.33 75

14 3

28 29 30 31 32. 33. 34.

95.8 93.7 70.8 41.67 48 29.16 39.5 29.16 29.16 27 48 35.4 27 48 31.25 37.5 12.5 12.5 N.A N.A

1 2 4 10 8 17 11 17 17 18 8 13 18 8 15 12 19 19 N.A N.A

35. 36. 37. 38. 39. 40. 41. 42 43 44 45. 46

47.

101

Table 4.6 Extent of Electronic Banking Services among Top Ten Ranks Name of Bank ICICI Bank HDFC Bank IDBI Bank Kotak Mahindra Bank Punjab National Bank Canara Bank Bank of Maharastra Corporation Bank Federal Bank Axis Bank Karnataka Bank Dena Bank Indian Bank Union bank of India Category New private Sector New private Sector Other public sector Bank New private Sector Nationalized Nationalized Nationalized Nationalized Old private Sector New private Sector Old private Sector Nationalized Nationalized Nationalized Rank 1 2 3 4 5 5 6 7 8 8 8 9 9 10 Category 95.8 93.7 75 70.8 64.5 64.5 62.5 56.2 48 48 48 45.8 45.8 41.67

Table 4.6 shows the extent of e-banking services. It is found that ICICI Bank offers as high as 95.8 per cent e-banking services, followed by HDFC Bank with 93.7 per cent of e-banking services. So, the top two positions of e-banking services are acquired by new private sector banks. Third position is acquired is by a public sector bank, viz. IDBI offering 75 per cent of services. Fourth position is again acquired by a new private sector bank, viz. Kotak Mahindra offering 70.8 per cent of services. Fifth rank is shared by Punjab National Bank and Canara Bank offering 64.5 per cent of services. Sixth position is acquired by Bank of Maharashtra with 62.5 per cent services, seventh by Corporation Bank with 56.25 per cent and eighth rank is shared by three banks jointly with 48.00 per cent of each service, i.e., Federal Bank, Karnataka Bank and Axis bank. Out of these three banks, two banks are old private sector banks and one is a new private sector bank. Ninth position is jointly shared by Dena Bank and Indian Bank with 45.8 per cent services. Both are nationalized banks. Tenth rank is bagged by Union Bank of India with 41.67 per cent services which is a nationalized one. The analysis depicts that new private sector banks and nationalized banks have provided e- banking services. Old private sector banks and SBI banks are in the early stage of development and introduction of early e-banking to their customers.

102

PART-II Extent of ATM Services In India 4.6 Conceptual Framework of ATM's In the world of banking, the developments in information technology had an enormous effect in development of more flexible payment methods and more userfriendly banking services. Online banking and other electronic payment systems are new and the development and diffusion of these technologies by financial institutions is expected to result in a more efficient banking system. This technology offers to the institutions an alternative or non-traditional delivery channels through which banking products and services can be delivered to customers more conveniently and economically without diminishing the existing service levels. However the entry of private sector has posed the challenge of competitive environment to the public sector banks in India. These private sector banks have brought with them the advanced banking technology with alternate delivery channels such as Phone Banking, Mobile banking, Internet Banking, Automated Teller Machines (ATM) etc. Out of all these e-banking services, the ever demanding and fulfilling the requirement of the customers is automated teller machines. So the efforts of the banks are to manufacture and install as much ATMs which could serve its services to the entire customers of the nation, be it rural people or urban people. To suit the needs of rural people, an additional security device innovations are being made in the form of using camera inside the ATM which could compare the records with thumb impression (Bio-Metric) of the client for identification. (Murali, 2006). The ATM industry consists of multitude of activities which is a major cause of making e-banking a 24 hours service. In fact, electronic banking is profitable and possible due to services of ATMs. Because this service provides immense help to the customers in withdrawing cash from anywhere, anytime. The management of ATM includes loading of ATM with cash, arranging of money with bank with which cash is loaded, service of car that delivers cash if it is offsite situated, providing insurance for all areas such as theft of cash from ATM. Due to large expense involved in setting and situating an ATM at a particular place, these services are now days offered by independent service providers like privately owned ATMs. The following is a list of businesses involved with ATMs.

103

Table 4.7 Companies Involved in the Business of ATM These companies physically build ATM. Companies that develop the advance locking systems that store cash in the machines Software Companies These companies help the customers to tell ATM what he wants to do. The software encrypted and processes all the required information. Paper products Service personnel All the ATM provides a physical receipt. They provide maintenance and mal-functioning of machines. Insurance Companies These companies provide insurance coverage for damage of machines etc. Vault cash Management companies Independent service Operators Sponsoring Financial institutions These companies take over the responsibility of delivering and stocking cash in ATM machines. They offer all ATM management services and offer day to day management services. An ATM must be sponsored by financial institution to be granted access to network. Now days due to the high cost involved in installing the ATM machines, these services are provided by privately owned institutions. By sponsoring a privately owned ATM, financial institution takes the full responsibility of non-bank location ATM. These financial institutions bears all the risks associated with installation of ATM, placing the machine and including risks of frauds. So all the privately owned ATM must have a sponsoring institution that carries such risk related to fraud, theft and cash mismanagement

Manufacturers Lock Manufacturers

104

4.7

Kinds of ATM The first ATM to be installed in India was by HSBC in 1987 at Mumbai. There

are different kinds of ATMs used by the banks for the customers. Table 4.8 shows the kinds of ATM according to location, links, card insertion and loading of cash. Figure 4.3
KINDS OF ATM

LOCATION

LINKS

CARD INSERTION

LOADING OF CASH

ON SITE

OFFSITE

STAND ALONE

NET WORKED

DIP CARD

MOTORISE D

FRONT

BACK

Source: Compiled from Murali 2006 (A) Onsite and Offsite ATMs ATMs which are situated at the premises of the bank are known as onsite ATMs and the one that are located at some busy places are known as offsite ATMs like food worlds, railway station, bus stops, shopping malls, petrol pumps etc. (B) Stand alone and Net-worked ATMs which are not linked to the hub of the bank to which it belongs are stand alone ATMs. But these ATMs are not popular now a days.Net-worked ATM on the other hand are those which are linked to the branch and also linked to the branches across the country means a customer of a particular bank can withdraw money from any branch of of any bank at any city. (C) Dip-card and Motorized Where the customer is required to dip the card and take it back to do the transaction is known as dip card. The sensors of the machine identifies the customer and greets him with the voice. On the other hand, motorized ATMs are very prevalent among all. In this the customer insert the card in the machine and takes it back when the transaction is over. In some machines immediately the card is taken back whereas in some machines the card automatically comes out when cash is withdrawn. 105

(D) Front and Back Cash has to be regularly loaded in the ATM machines. In the front loading the door of the ATM compartment is closed and cash is loaded where as in back loading, it is done behind the ATM and a message is displayed that please wait for sometime. Some services are being carried on. 4.8 Reasons for Adoption of ATM for the Customers and the Banks Figure 4.4
BENEFITS OF ATMS CUSTOMERS PERSPECTIVE
24*7 availability of ATM across all over the country
With networked ATMs ,customers can withdraw from any branch of any bank at any city

BANKS PERSPECTIVE
Cost of setting ATM is much lower than setting a branch Fewer burdens on staff for cash withdrawal

No queue standing (less time required) Multiple services available in addition to cash withdrawal

Wider choice with the bank to advertise their products through ATM Less hassle in handling cash

Table 4.9 shows the reason for adoption of ATM for the customers and the banks. The services availed through ATMs are convenient for the customers as it is available 24 hours. Further customer can withdraw cash from any branch of any bank at any city. Not only the money can be withdrawn but multiple services are available like balance enquiry, pin change option, receipt of last three transactions etc. From the bank point of view, the cost of installing an ATM is much less than setting up of a branch. Further, it provides wider choice for the bank to advertise their products through ATM and less cash handling is required. So ATM is beneficial from both customer and bank point of view. 4.9 Growth of Onsite and Offsite ATM in Banking Sector Number of ATMs in India is growing day by day. There is a tremendous growth in the ATM after the adoption of electronic banking by public and private sector banks. To study the growth of ATMs, it has been divided in to five categories, i.e., Nationalized banks, SBI group, Old private sector banks, New private sector banks and Foreign banks. It has been further classified in to onsite ATMs and offsite ATMs. The data has been compiled from 2004-05 to 2007-08. For each onsite and offsite ATMs, growth to 106

previous year has been calculated. The tables from 4.11 to 4.15 shows the onsite and offsite growth of ATMs. 4.9.1 Onsite & Offsite ATM of Nationalized banks Table 4.8 Year 2004-05 2005-06 2006-07 2007-08 Onsite ATM 3205 4812 6634 8320 Growth ---50.14 37.86 25.41 Offsite ATM 1567 2353 3254 5034 Growth --50.15 38.29 54.70

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to 2007-08 The above table consists of the onsite and offsite ATMs of nationalized banks which shows a tremendous growth from 2004 onwards. Onsite ATMs of the nationalized banks have shown a three-fold increase, it was merely 3205 in 2004-05 and increased to 8320 in 2007-08, however there is a decline in the growth of these ATMs from 50.14 per cent in 2005-06 to 25.41 per cent to 2007-08. Offsite ATMs of nationalized banks have registered a growth of 54.70 per cent in 2007-08. So, growth of onsite ATM of nationalized banks is more. Figure 4.5 Growth of Onsite and Offsite ATMs of Nationalized Banks
9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2004-05 2005-06 2006-07 2007-08 Onsite ATM Offsite ATM

107

4.9.2 Onsite and Offsite ATM of SBI Group Table 4.9 Year 2004-05 2005-06 2006-07 2007-08 Onsite ATM 1548 1775 3655 4582 Growth ---14.66 105.91 25.36 Offsite ATM 3672 3668 2786 3851 -0.1 -24.04 38.22 Growth

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to 2007-08 As far as SBI and its subsidiaries are concerned, the onsite ATMs have increased from 1548 to 4582 showing a three-fold increase. The growth rate increased tremendously from 14.66 per cent in 2005-06 to 105.91 per cent in 2006-07. But, it again, declined to 25.36 per cent in 2007-08. Due to the large asset base structure the SBI banks share of onsite ATMs is also high. Regarding the offsite ATMs the growth declined by -0.1 per cent in 2005-06 to -24.04 per cent in 2006-07. It was only in 200708 that this share increased to 38.22 per cent. So, growth of offsite ATMs shows a downward trend, while onsite ATMs show an upward trend.

Figure 4.6 Growth of Onsite and Offsite ATMs of SBI Banks

5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2004-05 2005-06 2006-07 2007-08 Onsite ATM Offsite ATM

108

4.9.3 Onsite and Offsite ATM of Old Private Sector Banks Table 4.10
Year Onsite ATM Growth Offsite ATM Growth

2004-05 2005-06 2006-07 2007-08 2007-08

800 1054 1104 1436

--31.75 4.74 30.07

441 493 503 664 11.79 2.02 32

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to Table 4.10 shows the onsite and offsite ATMs of old private sector banks. Old private sector banks provide limited e-banking services. Their share of ATMs is also not so high. In the year 2006-07, there was a great decline in their share and it was merely 4.74 per cent. Similarly, offsite ATMs also declined from 11.79 per cent in 2005-06 to 2.02 per cent in 2006-07 but again increased to 32 per cent. Figure 4.7 Growth of Onsite and Offsite ATM of Old Private Sector Banks
1600 1400 1200 1000 800 600 400 200 0 2004-05 2005-06 2006-07 2007-08 Onsite ATM Offsite ATM

4.9.4 Onsite and Offsite ATM of New Private Sector Banks Table 4.11
Year Onsite ATM Growth Offsite ATM Growth

2004-05 2005-06 2006-07 2007-08 2007-08

1883 2255 3154 3879

--19.75 39.86 22.98

3729 3857 5038 5988

--3.43 30.61 18.85

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to

109

Table 4.11 shows onsite and offsite ATMs of new private sector banks. New private sector banks constitute the major role in providing electronic banking services. These banks have recorded 19.75 per cent growth in 2005-06, 39.86 per cent in 2006-07 and 22.98 per cent in 2007-08. But the offsite growth of these banks is maximum as suggested by the number of ATMs i.e., 5988 in 2007-08. There has been a growth of only 3.43 per cent in 2005-06, 30.61 per cent in 2006-07, and 18.85 per cent in 2007-08 in the number of ATMs. Nationalized banks are having the largest share of onsite ATMs while new private sector banks are having the greatest share of offsite ATMs. Figure 4.8 Growth of Onsite and Offsite ATM of New Private Sector Banks
7000 6000 5000 4000 3000 2000 1000 0 2004-05 2005-06 2006-07 2007-08 Onsite ATM Offsite ATM

4.9.5 Onsite and Offsite ATM of Foreign Banks Table 4.12 Year 2004-05 2005-06 2006-07 2007-08 2007-08 Foreign banks play a vital role in Indian banking sector but their number of onsite and offsite ATMs is very less, so their growth rate was as very low as 6.42 per cent in
Onsite ATM Growth Offsite ATM Growth

218 232 249 269 6.42 7.32 8.03

579 648 711 765 11.01 9.72 7.59

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to

110

2005-06 which increased to 8.03 per cent in 2007-08. Offsite growth was merely 7.59 per cent in 2007-08. Figure 4.9 Growth of Onsite and Offsite ATM of Foreign Banks
900 800 700 600 500 400 300 200 100 0 2004-05 2005-06 2006-07 2007-08 OnsiteATM Offsite ATM

4.10 Per cent age of ATMs to Branches The following data shows the per cent of ATM to total branches in Indian Banking Sector from the period 2004-05 to 2007-08 4.10.1 Nationalized banks Table 4.13
Year Branches ATM Per cent

2004-05 2005-06 2006-07 2007-08 2007-08

33627 34012 35636 37775

4772 7165 9888 13355

14.19 21.06 27.74 35.35

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to Table 4.13 reveals that nationalized banks have the maximum number of branches, i.e., 37775 in 2007-08 and also the ATMs i.e., 13355. With an increase in the number of branches of these banks, the share of ATMs to branches has also been increasing. It was 14.19 per cent in 2004-05 and gradually increased up to 35.35 per cent inn 2007-08 over the study period. The results shows that nationalized banks increased branches by nearly 4000 but number of ATM increased by 9000. So banks focused more on new modes of electronic banking rather than opening more branches.

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4.10.2 State Bank Group Table 4.14 Year 2004-05 2005-06 2006-07 2007-08 Branches 13661 13831 14030 15105 ATM 5220 5443 6441 8433 Per cent 38.2 39.35 45.9 55.82

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to 2007-08 Table 4.14 depicts that banks in the SBI group are having equivalent share of ATMs to branches. The proportion of ATMs to number of branches is gradually increasing. It was 38.20 per cent in 2004-05 and increased to 55.82 percent in 2007-08. So, the share of ATMs constitutes half of the share of branches. It shows that the SBI group is not only focusing on its number of branches but ATMs also. 4.10.3 Old Private Sector Banks: Table 4.15 Year 2004-05 2005-06 2006-07 2007-08 Branches 4511 4566 4606 4450 ATM 1241 1547 1607 2100 Per cent 27.5 33.88 34.88 47.19

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to 2007-08 The number of branches of old private sector banks decreased rapidly during the period from 2004-05 to 2007-08. These were 4511 in 2004-05 and 4450 in 2007-08. But the number of ATMs showed an upward trend increasing from 1241 to 2100.

112

4.10.4 New Private Sector Banks Table 4.16 Year 2004-05 2005-06 2006-07 2007-08 Branches 1685 1950 2497 3825 ATM 5612 6112 8192 9867 Per cent 333.05 313.43 328.07 279.91

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to 2007-08 Table 4.16 reflects the branches and ATMs of new private sector banks. New private sector banks are leading banks in providing the services of electronic banking. They were having 1685 branches and 5612 ATMs in 2004-05, thus having a percentage share of 333 per cent. In 2007-08, number of ATMs increased to 9867; and the number branches were 3825 only. So, this is the sector where number of ATMs exceeds the number of branches as these banks offer wide range of electronic banking services to customers. 4.10.5 Foreign Banks Table 4.17 Year 2004-05 2005-06 2006-07 2007-08 Branches 242 259 273 277 ATM 797 880 960 1034 Per cent 329.33 339.76 351.64 373.28

Source: Data Compiled from Trends and Progress Report of RBI from 2004-05 to 2007-08 Table 4.17 mentions that foreign banks are also play a vital role for their customers in providing the e-banking services. These banks have very less number of branches in India merely 277 in 2004-05 and having 1034 ATM by the end 2007-08. As the technology is developing due to the competition and demand from the customer for the electronic banking, every bank is more focusing on the increase of modern techniques to provide the satisfaction to the customers. By using the information drawn from the survey of bank websites during June 2008, it was found that banks are offering electronic banking services in one form or other. Private sector banks lead the

113

public sector banks in adoption of electronic banking services. First two ranks were acquired by private sector banks. Most of other ranks were held by nationalized banks except two banks of old private sector and one of other public sector bank. ICICI and HDFC banks offer a wide range as well as more advanced services to customers. Some of banks are making their efforts to provide more services to the customers and rest of banks are at the introduction and development stage of providing electronic banking services. All the banks are making continuous effort to improve the ATM services because this is the service due to which electronic banking services are growing in India. Every bank is making a lot of steps in improving their ATM services because this is the most demanding and required e-banking service. But installation of the machine involves high cost of capital so the banks now a days are networking their machines together for the common benefit of all their customers who can use their cards in any of them.

114