The main business of the banking industry is to give the interest on deposits and distribute the amount received as loan and earn interest. After nationalization of banks in 1969, personalized banking was converted into social banking, in which banks used their limited resources for economical and social development of the country. This chapter successfully ran for about two decades. After that, around 1992, a new era started in the Indian banking industry and economic progress became stagnant. In the present scenario, banks have to be competitive to remain in the industry and forget better profitability. Every bank wants to become leader in the industry. Banks are now bound to computerize their branches in rural area also. Efforts are being made to provide better services by using computers.
Retail banking is also a part of this developing chain in the banking Industry. Retail banking means a type of banking, in which all categories of population get services from banking industry. Retail banking is a customer oriented service which increases clients. In this type of banking, possibilities of losses are very less and comparatively banks can get better productivity and profitability. If we compare, we found that in the present scenario, banks are behaving like multinational companies, who are presenting their products with full facilities and comparative rates. Banks are, therefore, forced to be practical about their marketing policies. ATM is one of their retail banking product.
Before knowing about ATM, it is very essential that we should know well about information technology. Information and society are now related with each other up to good extent. One cannot think about development of society without information technology. One can even say that information is the origin point of the society. Information technology has made possible to join different types of people in the society that is why present society is also called Information society. If we think about the starting of computers, we find that initially computer was used only for mathematical calculations but today it is a machine of unlimited capacity. Today with the help of computers human control over airplane, missiles etc have become very easy. Computer has made possible the invention of technique like Internet. Today with the help of Internet, doors of development have opened. Facilities like e-business, e-banking, e-education are the facilities by which a great change is being monitored in the society. We can also understand ATM in this regard.
The invention of ATM is near about 65 year old. Luther Jorge Semen has presented this product in 1939, but it was not a success. Afterward Don Wetzel, who was Vice president of Octal Company presented his machine in the market in 1968, which was the most successful available machine at that time in the market. It is presumed the first ATM was installed in Rock Wile Centre in Chemical bank in New York. At that time, it was installed by fixing it into wall. Cash was received by the customer immediately but accounting was done sometime later. Reason behind it was that at that time ATM was not linked with Branch’s software. Today’s ATM is the Profit Earning Machine for the bank.
Today one can not only withdraw the money, but also get his statement of account from many comer of the world. Presently ATMs are of two types. One is off Site ATM and other is on site ATM. Off site ATM can be installed anywhere without linking it with any of the branches. The ATM which we used to see at petrol pumps, hotels, aerodromes etc. are Off Site ATMs. On Site ATMs are those ATMs, which are installed only at branch premises. A Private Sector Bank’s ATM card holder can operate his account from any bank’s ATM. One can withdraw the money up to a limit from ATM. One can get the updated latest position of his account with the help of ATM.
To operate the ATM, card holder is given an ATM card by the Bank. A Personal Identification Number is given to the ATM card holder which is very confidential. Normally banks do not charge any fees for withdrawal of money from their own card holders. But for getting money from other bank’s ATM, banks charge some service charges. ATM do work 24 hours and 7 days. One can also deposit his check in ATM. With the help of ATM Card, which is affiliated with Master card, we can do shopping also.
Last, but not the least, we can say that by the change of the time, the type of Information Technology also changes. But the change, we get in this 21st century, is too much more, in comparison to the development, which we get in last thousand years and this is not the end.