SILB, Solan

PROJECT ON
CUSTOMER SATISFACTION WITH REGARD TO ATM
SERVICES

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
AWARD OF MASTER OF BUSINESS ADMININSTRATION OF HIMACHAL
PRADESH UNIVERSITY

(SHOOLINI INSTITUTE OF LIFE SCIENCES AND BUSINESS MANAGEMENT, SOLAN)

SUBMITTED BY:

DINESH VERMA

2008-2010

ROLL NO: - 1285

GUIDED BY - Mr. Nikhil Uprety

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SHOOLINI INSTITUTE OF LIFE SCIENCES AND

BUSINESS MANAGEMENT, SOLAN

CERTIFICATE
This is to certify that the FIELD WORK titled “CUSTOMER
SATISFACTION WITH REGARD TO ATM SERVICES”

Is a Bona fide work carried out by Mr. DINESH VERMA, student of

Master of BUSINESS ADMINISTRATION 2nd year ROLL NO.1285 of
SHOOLINI INSTITUTE OF LIFE SCIENCES AND BUSINESS MANAGEMENT,
SOLAN under HIMACHAL PRADESH University in the Year 2010.

Internal guide Director

Mr. Nikhil Uprety Dr. J.B. Nadda

Date:

Place: SOLAN

DECLARATION

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I DINESH VERMA student of the Master of Business Administration hereby

declare that all information, facts and figures in this report are as my own findings
and experience in the Solan city of H.P. I also hereby declare that all the facts,
figures and information given in this report is absolutely correct.

This information has been used for purely academic purpose.

DINESH VERMA

MBA

Roll. No. 1285

ACKNOWLEDGMENT
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The research on “CUSTOMER SATISFACTION WITH REGARD TO ATM

SERVICES” has been given to me as part of the field study in 2-Years Masters
Degree in Business Administration.

I have tried my best to present this information as clearly as possible using basic
terms that I hope will be comprehended by the widest spectrum of researchers,
analysts and students for further studies.

The successful completion of any project requires guidance and help from
number of people.

This project report could not have been completed without the guidance of Mr.
Nikhil Uprety.

In the end, I would also like to thank all faculty members, family, friends,
respondents and all those whose names are not mentioned above and who have
indirectly helped me in various ways in successfully carrying out the project.

DINESH VERMA

INDEX

S.NO. PARTICULARS PAGE NO.

1. INTRODUCTION 6

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2. FUNCTIONS OF ATM MACHINES 11

3. OBJECTIVES OF THE PROJECT 12
4. IMPORTANCE OF THE STUDY 13
5. METHODOLOGY OF THE STUDY 14
6. RESEARCH DESIGN 16
7. ATM INDUSTRY IN INDIA 19
8. COMPANY PROFILE (SBI) 24-43
9. COMPANY PROFILE (PNB) 44-52
10. RECENT NEWS ON ATM SERVICES IN INDIA 53
11. DATA ANALYSIS AND INTERPRETATION 54-69
12. FINDINGS AND CONCLUSION 70
13. RECOMMENDATIONS 72
14. BIBLIOGRAPHY 73
15. QUESTIONNAIRE 74

Introduction

An automated teller machine (ATM) or the automatic banking machine (ABM) is a

computerized telecommunications device that provides the clients of a financial
institution with access to financial transactions in a public space without the need

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for a cashier, human clerk or bank teller. On most modern ATMs, the customer is
identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart
card with a chip that contains a unique card number and some security information
such as an expiration date. Authentication is provided by the customer entering a
personal identification number (PIN) Using an ATM, customers can access their
bank accounts:

1. To make cash withdrawals

2. Check their account balances

3. Exchange rate for foreign travelers.

Example- If the currency being withdrawn from the ATM is different from that
which the bank account is denominated in (e.g.: Withdrawing Japanese Yen from a
bank account containing US Dollars), the money will be converted at a wholesale
exchange rate. Thus, ATMs often provide the best possible exchange rate for
foreign travelers and are heavily used for this purpose as well.

History

The idea of self-service in retail banking developed through independent and

simultaneous efforts in Japan, Sweden, the United States and the United Kingdom.
In the USA Luther George Simjian was developed the first cash dispenser machine

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in June -30 -1960. The roll out of this machine, called Bankograph, was delayed a
couple of years. An experimental Bankograph was installed in New York City in
1961 by the City Bank of New York. A first Cash dispensing device was used in
1966 in Tokyo. ATM first used in December 1972 in UK which is designed by
IBM2984.

Other names for ATM machine

1. Automated Transaction Machine

2. Automated banking machine
3. cash point (in Britain),
4. money machine
5. bank machine,
6. cash machine
7. hole-in-the-wall, Bancomat (in various countries in Europe and Russia)
8. Multibanco ( in Portugal)
9. Any Time Money (in India).

Locations

Locations means where ATM machines are placed

1. Near or inside the premises of banks

2. Shopping centers/malls

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3. Airports
4. Grocery stores
5. Petrol/gas stations
6. Restaurants
7. Any place large numbers of people may gather

Hardware

An ATM is the typically made up of the following devices: CPU (to control the
user interface and transaction devices) Magnetic and/or Chip card reader (to
identify the customer) PIN Pad (similar in layout to a Touch tone or Calculator
keypad), often manufactured as part of a secure enclosure. Secure crypto
processor, generally within a secure enclosure. Display (used by the customer for
performing the transaction) Function key buttons (usually close to the display) or a
Touch screen (used to select the various aspects of the transaction) Record Printer
(to provide the customer with a record of their transaction) Vault (to store the parts
of the machinery requiring restricted access) Housing (for aesthetics and to attach
signage to) Software

• With the hardware, standard commercial operating systems and programming

environments can be used inside of ATMs. • Typical platforms previously used in
ATM development include RMX or OS/2. Today the vast majority of ATMs
worldwide use a Microsoft OS, primarily Windows XP Professional or Windows
XP Embedded. A small number of deployments may still be running older versions
such as Windows NT, Windows CE or Windows 2000. Notably, Vista was not
widely adopted in ATMs.

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How ATM Machine Works

Process for withdraw cash

1. After the customer ATM card is approved the screen shows list of operation.
2. After amount of withdraw is entered the ATM opens one of four boxes by
activating a door that rolls up to expose the face of a bill
3. At same time a suction device pulls the correct number of bill.
4. The bills are placed on rollers and moved to holding area until they are
dispensed.
5. If the wrong number of bill is pulled or the bill is damaged the ATM
machine. Drop that bill into reject box and repeat the process.
6. The bills are dispensed.
7. A receipt is printed and transaction is recorded.

Process for deposit of money

1. After the customer ATM card is approved the screen shows list of operation.
2. Once a deposited envelope is filled out and inserted into a deposit slot , it is
pulled by rollers into a box.
3. Before it is dropped into bank the date, user’s bank account number and
deposit total are printed on envelope.

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4. A receipt or a complete bank statement is printed, and the transaction is

recorded.

A Sun Corp Metway ATM running OS/2

A Wincor Nixdorf ATM running Windows 2000

Security

• Customer identity integrity

To verify cardholder identities have been tested and deployed in some countries,
such as finger and palm vein patterns and facial recognition technologies.
However, recently, cheaper mass production equipment has been developed and
being installed in machines globally that detect the presence of foreign objects on
the front of ATMs, current tests have shown 99% detection success for all types of
devices.

• ATMs are often covered by mechanical shutters to prevent tampering with the
machines when they are not in use. • Alarm sensors are placed inside the ATM and
in ATM servicing areas to alert their operators when doors have been opened by
unauthorized personnel.

• Rules are usually set by the government or ATM operating body that dictate what
happens when integrity systems fail.

Functions of ATM machine

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• Deposit currency recognition, acceptance, and recycling

• Paying routine bills, fees, and taxes (utilities, phone bills, social security, legal
fees, taxes, etc.)

• Printing bank statements

• Updating passbooks

• Loading monetary value into stored value cards

• Purchasing – Postage stamps – Lottery tickets – Train tickets – Concert tickets –

Movie tickets – Shopping mall gift certificates.

• Games and promotional features

Objectives of the Project

To see if the customer is satisfied with ATM facility?

What are the shortcomings, which need attention?

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To draw Comparison between the facilities provided

in terms of ATM services of SBI and PNB

Importance of the study

It is aimed to study the Customer Preference towards

ATM Services of Punjab National Bank and State Bank
of India. The project analyzed the demographic,

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psychographic and preference characteristics of the

customers in using ATM. It includes the detailed study of
customers focusing on the various parameters that lead to
identifying and understanding the perception of the
customer and behavior regarding services offered by SBI
and PNB. SBI and PNB both are public sector bank and
enjoy the loyalty of customers due to their work quality
and long era of services. So it becomes important to
reveal a correct diagram and impact of the ATM services
provided by it maintaining their dignity and position

METHODOLOGY OF STUDY:
Research can be defined as a systemized effort to gain new knowledge. A
research is carried out by different methodologies which have their own pros and
cons. Research methodology is a way to solve research in study and solving
research problems along with logic behind them are defined through research

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methodology. Thus while talking about research methodologies we are not only
talking of research methods but also consider the logic behind the methods. We are
in context of our research studies and explain why it is being used a particular
method or technique and why the others are not used. So that research result is
capable of being evaluated either by researcher himself or by others.

ASSUMPTIONS:

1. It has been assumed that sample of hundred represents the whole population
2. The information given by the customer is unbiased

LITERATURE SURVEY:

The project is based on pure findings of facts

COLLECTION OF DATA:

This research is solely based on primary research done by means of

questionnaires targeted to respondents who primarily belong to the business and
service sector. The sample size is 100. Survey has been conducted in Solan
Region.

EXECUTION OF PROJECT

It is very essential in the research process to know the accuracy of the finding’s
which depends on how systematically the study has been carried out so that it can
make sense.

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We have executed the project after prior discussion with our guide and structured
in the following steps:

a. Preparation of a questionnaire
b. The focal point of the designing the questionnaire was to comprehend the
current investment scenario.
c. This questionnaire was primarily aimed to respondents who belong to the
service, students and business class people.
d. The questionnaires were discussed through personal interface with the
respondents.

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Research Design

Exploratory

Information pertaining to ATM usage in Solan will be collected from various

banks. Concerned persons at various banks will be interviewed.

Information will also be collected from customers using ATM facility and their
attitude towards the same will be studied.

Questionnaire

A questionnaire will be administered to the current ATM users of various banks in

Solan, personally by the research team. The questionnaire will contain not more
than 18 questions.

SAMPLING PLAN

Relevant Population

People using SBI and PNB Banks ATM cards in Solan City.

Sample Size

Sample of 100 will be taken from Solan City

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ATM – REVOLUTION IN BANKING INDUSTRY

As is often the case with inventions, many inventors contribute to the history of an
invention. In the case of the ATM, Don Wetzel invented the first successful and
modern ATM in the USA, however he was not first inventor to create an ATM. In
1939, Luther George Simjian started patenting an earlier and not-so-successful
version of an ATM. An automatic teller machine or ATM allows a bank customer
to conduct their banking transactions from almost every other ATM machine in the
world.

Don Wetzel

Don Wetzel was the co-patentee and chief conceptualist of the automated teller
machine, an idea he said he thought of while waiting in line at a Dallas bank. At
the time (1968) Wetzel was the Vice President of Product Planning at Docutel, the
company that developed automated baggage-handling equipment. It took five
million dollars to develop the ATM. The concept of the modern ATM first began
in 1968, a working prototype came about in 1969 and Docutel was issued a patent
in 1973. The first working ATM was installed in a New York based Chemical
Bank. The first ATMs were off-line machines, meaning money was not
automatically withdrawn from an account. A computer network to the ATM. not
(at that time) connected the bank accounts. Therefore, banks were at first very
exclusive about who they gave ATM privileges to. Giving them only to credit card
holders (credit cards were used before ATM cards) with good banking records.
Wetzel, Barnes and Chastain developed the first real ATM cards, cards with a
magnetic strip and a personal ID number to get cash. ATM cards had to be
different from credit cards (then without magnetic strips) so account information
could be included (http://inventors.about.com/library/inventors/blatm.htm)

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Luther George Simjian

Starting in 1939, Simjian registered 20 patents related to the device and persuaded
what is now Citicorp to give it a trial. After six months, the bank reported that
there was little demand.

"It seems the only people using the machines were a small number of prostitutes
and gamblers who didn't want to deal with tellers face to face," wrote Simjian.

Later, of course, the idea caught on, and today, modern versions of the automatic
teller machine stand on nearly every street corner. Despite the notoriety that came
with his ATM concept.

(http://web.mit.edu/invent/iow/simjian.html)

Cash Technologies, Inc. Introduces New Transaction Processing System to

Revolutionize the Traditional ATM

According to ATM developer and Docutel employee Don Wetzel, "We never did
see the ATM as just a cash dispenser. We thought it had to be a machine that did
most of the functions of a teller including transferring money, taking payments and
issuing cash advances. But, nearly 30 years later, the ATM is still not much more
than a cash dispenser. In fact, out of the nearly 220,000 ATMs installed in the
U.S., research shows nearly half provide only cash dispensing transactions. And,
only five percent of the remaining ATMs do anything more than the original, basic
bank account functions -- even though consumers are demanding more twenty-four
hour services from their local bank.

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ATM INDUSTRY STATUS IN INDIA

In India ATM is still a new technology. With the emergence of private sector
Banks like ICICI Bank, IDBI Bank, HDFC Bank etc. the number of ATM centers
has increased tremendously. There are presently all types of Banks offering ATM
services. For example State Bank of India (a Public Sector Bank), ICICI Bank (a
Private Bank), Citibank (A Foreign Bank), Greater Bombay CO-OP Bank (a co-op
Bank).

The Banks are offering various services like Cash withdrawal, fund transfer,
Balance enquiry etc.

The Banks have tie-ups in between them for sharing of their services this may be
bilateral or multilateral by way of consortium like SWADHAN.

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AUTOMATIC TELLER MACHINES (ATMS) SHARED BY A

CONSORTIUM OF BANKS

Each bank provides its own computer to maintain its own accounts and process
transactions against them.  Cashier stations are owned by individual banks and
communicate directly with their own bank’s computers.  Human cashiers enter
account and transaction data.  Automatic teller machines communicate with a
central computer that clears transactions with the appropriate banks.  An automatic
teller machine accepts a cash card, interacts with the user, communicates with the
central system to carry out the transaction, dispenses cash, and prints receipts.  The
system requires appropriate record-keeping and security provisions.  The system
must handle concurrent accesses to the same account correctly.  The banks provide
their own software for their own computers; you are to design the software for the
ATMs and the network.  The cost of the shared system is normally apportioned to
the banks according to the number of customers with cash cards.

In India very good example of such consortium is SWADHAN NETWORK.

SWADHAN NETWORK is a net work of various public sector Banks, Private
Banks and Co- operative Banks with nationwide coverage.

SWADHAN

SWADHAN, India’s FIRST Shared Payment Network Service is unsurpassed in

offering countrywide access to the banking operations at more than 1000 ATMs in
and around 64 cities.  It has 55 member banks in the network, which includes
nationalized, private and foreign banks. SWADHAN provides convenient banking,
24 hours a day and 7 days a week through the Automated Teller Machines to the

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participating bank’s customers across the country. With SWADHAN, the bank
customers are never far away from an ATM.

The member bank’s customer can withdraw money anytime from any of the ATM
irrespective of the bank with which the customer has an account. It offers services
beyond cash withdrawals, like utility bill payment, fund transfer and deposits.
SWADHAN widens the scope of ATM usage in the country in a cost effective
manner. A member bank of SWADHAN can increase its geographical presence
without deploying ATMs in all the locations; instead it can share and use ATMs of
other banks, thereby saving a substantial amount. Likewise, the customer of the
bank is highly benefited by having a nation-wide access to the card, without
holding multiple accounts in different banks.

The average transaction per day in the SWADHAN network is around 2500.
The largest and only Shared Payment Network System (SPNS) in India,
SWADHAN is posting a very impressive growth rate since its inception. In 1997,
at the start of the network, the number of ATMs in SWADHAN Network was only
around 24, whereas today it is grown close to 1000 ATMs. Today, in the country,
25% of the ATMs are networked to SWADHAN. Everyday brings new ATMs and
banks to the network.

Being the leading light in Shared Payment Network System for debit cards in
India, it has auspicious plans to provide connectivity to the international payment
networks, such as master card and visa in a very formidable way. It is poised to
enable the existing system for e-payments thereby helping the banks excel in an e-
powered service.

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ATM SERVICES OF PNB

&
SBI BANK IN INDIA
As part of its 'Clicks and Bricks' strategy, both SBI and PNB Banks have
developed multiple access channels comprising lean brick and mortar branches,
ATMs, call centers and Internet banking. The branch network including extension
counters presently covers many locations across India.

SBI and PNB Bank’s network of 24 hr ATMs is one of the largest and most
widespread ATM Networks in India. Banks ATMs are conveniently located in
Commercial areas, residential localities, Major Petrol Pumps and Airports, Near
Railway Stations and other places, which are conveniently accessible to customers.

 The SBI and PNB Banks ATMs feature user-friendly graphic screens with easy to
follow instructions. IT has also introduced ATMs, which interact with customers in
local languages for further convenience.

 The following are the features available on SBI and PNB Banks ATMs, which
can be accessed from anywhere at any time.

Cash Withdrawal:

A customer can withdraw up to Rs.25,000/- on a single day from his account. In

this, the Fast Cash option shows prefixed amounts, which a customer can choose
from, and Ultra Fast Cash option to withdraw Rs.3000/- at one time.

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Balance Enquiry:

Customer can know the ledger balance and available balance with his account.

Mini Statement:

Customer gets a receipt printout of his last 8 transactions and the balance.

Deposit Cash / Cheques:

Available in all full function ATMs, customers can deposit both cash and cheques
in the ATM. Cash deposited in ATMs will be credited to the account on the same
day and cheques sent for clearing on the next working day.

Funds Transfer:

Customer can transfer funds from one account to another linked account in the
same branch.

PIN Change:

The Customer Change the Personal Identification Number (PIN) of the ATM or
Debit card.

Payments:

This is the latest feature on Banks ATM’s, its functionality can be used for
payment of bills, donating to temples / trusts or making airtime recharges for
prepaid mobile phones.

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COMPANY PROFILE

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ABOUT SBI

The Bank is actively involved since 1973

in non-profit activity called Community Services Banking. All our branches and
administrative offices throughout the country sponsor and participate in large
number of welfare activities and social causes. Our business is more than banking
because we touch the lives of people anywhere in many ways.

BOARD OF DIRECTORS

Central Board of State Bank of India

(As on 13th May 2009) 
Sr. No. Name of Director Sec. of SBI Act, 1955
Shri O.P. Bhatt
1. 19(a)
Chairman
Shri S.K. Bhattacharyya
2. 19(b)
MD & CC&RO
Shri R. Sridharan
3. 19(b)
MD & GE(A&S)
4. Dr. Ashok Jhunjhunwala 19(c)
5. Shri Dileep C. Choksi 19(c)
6. Shri S. Venkatachalam 19(c)
7. Shri. D. Sundaram 19(c)
8. Dr. Deva Nand Balodhi 19(d)
9. Prof. Mohd. Salahuddin Ansari 19(d)
10. Dr.(Mrs.) Vasantha Bharucha 19(d)
11. Dr. Rajiv Kumar 19(d)
12. Shri Ashok Chawla 19(e)
13. Smt. Shyamala Gopinath 19(f)

TRANSFORMATION JOURNEY IN STATE BANK OF INDIA

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The State Bank of India, the country’s oldest Bank and a premier in terms of
balance sheet size, number of branches, market capitalization and profits is today
going through a momentous phase of Change and Transformation – the two
hundred year old Public sector behemoth is today stirring out of its Public Sector
legacy and moving with an agility to give the Private and Foreign Banks a run for
their money.

The bank is entering into many new businesses with strategic tie ups – Pension
Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,
Point of Sale Merchant Acquisition, Advisory Services, structured products etc –
each one of these initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new
banking models, to expand its Rural Banking base, looking at the vast untapped
potential in the hinterland and proposes to cover 100,000 villages in the next two
years.

It is also focusing at the top end of the market, on whole sale banking capabilities
to provide India’s growing mid / large Corporate with a complete array of products
and services. It is consolidating its global treasury operations and entering into
structured products and derivative instruments. Today, the Bank is the largest
provider of infrastructure debt and the largest arranger of external commercial
borrowings in the country. It is the only Indian bank to feature in the Fortune 500
list.

The Bank is changing outdated front and back end processes to modern customer
friendly processes to help improve the total customer experience. With about 8500
of its own 10000 branches and another 5100 branches of its Associate Banks
already networked, today it offers the largest banking network to the Indian

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customer. The Bank is also in the process of providing complete payment solution
to its clientele with its over 8500 ATMs, and other electronic channels such as
Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centers spread all
over the country the Bank is continuously engaged in skill enhancement of its
employees. Some of the training programs are attended by bankers from banks in
other countries.

The bank is also looking at opportunities to grow in size in India as well as

internationally. It presently has 82 foreign offices in 32 countries across the globe.
It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI
DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the
Indian Banking scenario. It is in the process of raising capital for its growth and
also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets,
attitudes and take all employees together on this exciting road to Transformation.
In a recently concluded mass internal communication program termed ‘Parivartan’
the Bank rolled out over 3300 two day workshops across the country and covered
over 130,000 employees in a period of 100 days using about 400 Trainers, to drive
home the message of Change and inclusiveness. The workshops fired the
imagination of the employees with some other banks in India as well as other
Public Sector Organizations seeking to emulate the programme.

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EVOLUTION OF SBI

The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta in Calcutta
on 2 June 1806. Three years later the bank received its charter and was re-
designed as the Bank of Bengal (2 January 1809). A unique institution, it was
the first joint-stock bank of British India sponsored by the Government of
Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the
apex of modern banking in India till their amalgamation as the Imperial Bank
of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into

existence either as a result of the compulsions of imperial finance or by the
felt needs of local European commerce and were not imposed from outside in
an arbitrary manner to modernize India's economy. Their evolution was,
however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to
the economy of Europe and the global economic framework.

 
Bank of Bengal H.O.

Establishment

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The establishment of the Bank of Bengal marked the advent of limited

liability, joint-stock banking in India. So was the associated innovation in
banking, viz. the decision to allow the Bank of Bengal to issue notes, which
would be accepted for payment of public revenues within a restricted
geographical area. This right of note issue was very valuable not only for the
Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It
meant an accretion to the capital of the banks, a capital on which the
proprietors did not have to pay any interest. The concept of deposit banking
was also an innovation because the practice of accepting money for
safekeeping (and in some cases, even investment on behalf of the clients) by
the indigenous bankers had not spread as a general habit in most parts of
India. But, for a long time, and especially up to the time that the three
presidency banks had a right of note issue, bank notes and government
balances made up the bulk of the investible resources of the banks.

The three banks were governed by royal charters, which were revised from
time to time. Each charter provided for a share capital, four-fifth of which
were privately subscribed and the rest owned by the provincial government.
The members of the board of directors, which managed the affairs of each
bank, were mostly proprietary directors representing the large European
managing agency houses in India. The rest were government nominees,
invariably civil servants, one of whom was elected as the president of the
board.

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Group Photograph of Central Board (1921)

Business

The business of the banks was initially confined to discounting of bills of

exchange or other negotiable private securities, keeping cash accounts and
receiving deposits and issuing and circulating cash notes. Loans were
restricted to Rs.one lakh and the period of accommodation confined to three
months only. The security for such loans was public securities, commonly
called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a
perishable nature' and no interest could be charged beyond a rate of twelve
per cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton
piece goods, mule twist and silk goods were also granted but such finance by
way of cash credits gained momentum only from the third decade of the
nineteenth century. All commodities, including tea, sugar and jute, which
began to be financed later, were either pledged or hypothecated to the bank.
Demand promissory notes were signed by the borrower in favor of the
guarantor, which was in turn endorsed to the bank. Lending against shares of
the banks or on the mortgage of houses, land or other real property was,
however, forbidden.

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Indians were the principal borrowers against deposit of Company's paper,

while the business of discounts on private as well as salary bills was almost
the exclusive monopoly of individuals Europeans and their partnership firms.
But the main function of the three banks, as far as the government was
concerned, was to help the latter raise loans from time to time and also
provide a degree of stability to the prices of government securities.

 
Old Bank of Bengal

Major change in the conditions

A major change in the conditions of operation of the Banks of Bengal,

Bombay and Madras occurred after 1860. With the passing of the Paper
Currency Act of 1861, the right of note issue of the presidency banks was
abolished and the Government of India assumed from 1 March 1862 the sole
power of issuing paper currency within British India. The task of management
and circulation of the new currency notes was conferred on the presidency
banks and the Government undertook to transfer the Treasury balances to the
banks at places where the banks would open branches. None of the three
banks had till then any branches (except the sole attempt and that took a

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short-lived one by the Bank of Bengal at Mirzapore in 1839) although the

charters had given them such authority. But as soon as the three presidency
bands were assured of the free use of government Treasury balances at places
where they would open branches, they embarked on branch expansion at a
rapid pace. By 1876, the branches, agencies and sub agencies of the three
presidency banks covered most of the major parts and many of the inland
trade centers in India. While the Bank of Bengal had eighteen branches
including its head office, seasonal branches and sub agencies, the Banks of
Bombay and Madras had fifteen each.

 
Bank of Madras Note Dated 1861 for Rs.10

Presidency Banks Act

The presidency Banks Act, which came into operation on 1 May 1876,
brought the three presidency banks under a common statute with similar
restrictions on business. The proprietary connection of the Government was,
however, terminated, though the banks continued to hold charge of the public
debt offices in the three presidency towns, and the custody of a part of the
government balances. The Act also stipulated the creation of Reserve
Treasuries at Calcutta, Bombay and Madras into which sums above the
specified minimum balances promised to the presidency banks at only their

32
 SILB, Solan

head offices were to be lodged. The Government could lend to the presidency
banks from such Reserve Treasuries but the latter could look upon them more
as a favor than as a right.

 
Bank of Madras

The decision of the Government to keep the surplus balances in Reserve

Treasuries outside the normal control of the presidency banks and the
connected decision not to guarantee minimum government balances at new
places where branches were to be opened effectively checked the growth of
new branches after 1876. The pace of expansion witnessed in the previous
decade fell sharply although, in the case of the Bank of Madras, it continued
on a modest scale as the profits of that bank were mainly derived from trade
dispersed among a number of port towns and inland centers of the presidency.

India witnessed rapid commercialization in the last quarter of the nineteenth

century as its railway network expanded to cover all the major regions of the
country. New irrigation networks in Madras, Punjab and Sind accelerated the
process of conversion of subsistence crops into cash crops, a portion of which
found its way into the foreign markets. Tea and coffee plantations
transformed large areas of the eastern Terais, the hills of Assam and the

33
 SILB, Solan

Nilgiris into regions of estate agriculture par excellence. All these resulted in
the expansion of India's international trade more than six-fold. The three
presidency banks were both beneficiaries and promoters of this
commercialization process as they became involved in the financing of
practically every trading, manufacturing and mining activity in the sub-
continent. While the Banks of Bengal and Bombay were engaged in the
financing of large modern manufacturing industries, the Bank of Madras went
into the financing of large modern manufacturing industries; the Bank of
Madras went into the financing of small-scale industries in a way which had
no parallel elsewhere. But the three banks were rigorously excluded from any
business involving foreign exchange. Not only was such business considered
risky for these banks, which held government deposits, it was also feared that
these banks enjoying government patronage would offer unfair competition to
the exchange banks which had by then arrived in India. This exclusion
continued till the creation of the Reserve Bank of India in 1935.

 
Bank of Bombay

Presidency Banks of Bengal

The presidency Banks of Bengal, Bombay and Madras with their 70 branches
were merged in 1921 to form the Imperial Bank of India. The triad had been

34
 SILB, Solan

transformed into a monolith and a giant among Indian commercial banks had
emerged. The new bank took on the triple role of a commercial bank, a
banker's bank and a banker to the government.

But this creation was preceded by years of deliberations on the need for a
'State Bank of India'. What eventually emerged was a 'half-way house'
combining the functions of a commercial bank and a quasi-central bank.

The establishment of the Reserve Bank of India as the central bank of the
country in 1935 ended the quasi-central banking role of the Imperial Bank.
The latter ceased to be bankers to the Government of India and instead
became agent of the Reserve Bank for the transaction of government business
at centers at which the central bank was not established. But it continued to
maintain currency chests and small coin depots and operate the remittance
facilities scheme for other banks and the public on terms stipulated by the
Reserve Bank. It also acted as a bankers' bank by holding their surplus cash
and granting them advances against authorized securities. The management of
the bank clearing houses also continued with it at many places where the
Reserve Bank did not have offices. The bank was also the biggest tenderer at
the Treasury bill auctions conducted by the Reserve Bank on behalf of the
Government.

The establishment of the Reserve Bank simultaneously saw important

amendments being made to the constitution of the Imperial Bank converting it
into a purely commercial bank. The earlier restrictions on its business were
removed and the bank was permitted to undertake foreign exchange business

35
 SILB, Solan

and executor and trustee business for the first time.

Imperial Bank
The Imperial Bank during the three and a half decades of its existence
recorded an impressive growth in terms of offices, reserves, deposits,
investments and advances, the increases in some cases amounting to more
than six-fold. The financial status and security inherited from its forerunners
no doubt provided a firm and durable platform. But the lofty traditions of
banking which the Imperial Bank consistently maintained and the high
standard of integrity it observed in its operations inspired confidence in its
depositors that no other bank in India could perhaps then equal. All these
enabled the Imperial Bank to acquire a pre-eminent position in the Indian
banking industry and also secure a vital place in the country's economic life.

 
Stamp of Imperial Bank of India
When India attained freedom, the Imperial Bank had a capital base (including
reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and
Rs.72.94 crores respectively and a network of 172 branches and more than
200 sub offices extending all over the country.

36
 SILB, Solan

First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of
rural India was given the highest priority. The commercial banks of the
country including the Imperial Bank of India had till then confined their
operations to the urban sector and were not equipped to respond to the
emergent needs of economic regeneration of the rural areas. In order,
therefore, to serve the economy in general and the rural sector in particular,
the All India Rural Credit Survey Committee recommended the creation of a
state-partnered and state-sponsored bank by taking over the Imperial Bank of
India, and integrating with it, the former state-owned or state-associate banks.
An act was accordingly passed in Parliament in May 1955 and the State Bank
of India was constituted on 1 July 1955. More than a quarter of the resources
of the Indian banking system thus passed under the direct control of the State.
Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959,
enabling the State Bank of India to take over eight former State-associated
banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of social purpose
aided by the 480 offices comprising branches, sub offices and three Local
Head Offices inherited from the Imperial Bank. The concept of banking as
mere repositories of the community's savings and lenders to creditworthy
parties was soon to give way to the concept of purposeful banking sub serving
the growing and diversified financial needs of planned economic
development. The State Bank of India was destined to act as the pacesetter in

37
 SILB, Solan

this respect and lead the Indian banking system into the exciting field of
national development.

ATM SERVICES

STATE BANK NETWORKED ATM SERVICES

State Bank offers you the convenience of over 8000 ATMs in India, the largest
network in the country and continuing to expand fast! This means that you can
transact free of cost at the ATMs of State Bank Group (This includes the ATMs of
State Bank of India as well as the Associate Banks – namely, State Bank of
Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of
Mysore, State Bank of Patiala, State Bank of Saurashtra, and State Bank of
Travancore) and wholly owned subsidiary viz. SBI Commercial and International
Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card.

KINDS OF CARDS ACCEPTED AT STATE BANK ATMs

Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-
Cum-Debit Cards following cards are also accepted at State Bank ATMs: -

1) State Bank Credit Card

2) ATM Cards issued by Banks under bilateral sharing viz.  Andhra Bank, Axis
Bank, Bank of India, The Bank of Rajasthan Ltd., Canara Bank, Corporation Bank,
Dena Bank, HDFC Bank, Indian Bank, Indus Ind Bank, Punjab National Bank,
UCO Bank and Union Bank of India.

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 SILB, Solan

3) Cards issued by banks (other than banks under bilateral sharing) displaying
Maestro, Master Card, Cirrus, VISA and VISA Electron logos

4) All Debit/ Credit Cards issued by any bank outside India displaying Maestro,
Master Card, Cirrus, VISA and VISA Electron logos

Note: If you are a cardholder of bank other than State Bank Group, kindly contact
your Bank for the charges recoverable for usage of State Bank ATMs.

State Bank ATM-cum-Debit (State Bank Cash plus) Card:

India’s largest bank is proud to offer you unparalleled convenience viz. State Bank
ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in
your wallet. You can now withdraw cash and make purchases anytime you wish to
with your ATM-cum-Debit Card.

Features: 

Withdraw cash from over 8000 ATMs of our group FREE and about 16000 ATMs
of other banks under bilateral sharing viz. Andhra Bank, Axis Bank, Bank of India,
The Bank of Rajasthan Ltd. Canara Bank, Corporation Bank, Dena Bank, HDFC
Bank, Indian Bank, IndusInd Bank, Punjab National Bank, UCO Bank and Union Bank of
India apart from ATMs displaying Master Card/ Maestro/Cirrus logo for a nominal fee as under:
-

Transaction ATMs of Other banks

Sharing under Maestro/
network Master Card/
banks Cirrus network
Cash Rs. 25/- * Rs. 50/-*
Withdrawal
Balance Rs. 12/-* Rs. 12/-*

39
 SILB, Solan

Inquiry

Make payments for purchases by using the debit card at more than 2,39,000 shops,
restaurants, shopping malls, hotels, petrol pumps and many other outlets which
display Maestro logo.

Recharge pre-paid mobile phones of Vodafone, IDEA and BPL without any

charges at any State Bank ATM.

Recharge pre-paid mobile phones of AIRTEL of 11 Circles viz. Mumbai, Delhi,

Gujarat, M.P., U.P. (East), U.P. (West), Karnataka, Kerala, Andhra Pradesh,
Tamilnadu, and Chennai, through ATM/ SMS anywhere in India.

Recharge mobile phones of AIRTEL, Vodafone, IDEA and BPL without any
charges at all ATMs as well as by sending SMS (after registration at State Bank
ATM).The text of SMS will be as under: -

Service SMS Text Send SMS

Provider to

Airtel RC (AMOUNT) 535

PIN

BPL RC SBI 140

(AMOUNT) PIN

Vodafone RC SBI 147

(AMOUNT) PIN

IDEA RC SBI 575

(AMOUNT) PIN

Pay MTNL, Mumbai bills through State Bank ATMs

Payment of SBI Credit Card bills

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 SILB, Solan

Payment of SBI Life insurance premium

Pay fees of select colleges

Donate to Temple Trusts: - (a) Vaishno Devi (b) Shirdi Saibaba (c)
Gurudwara Takht Saheb, Nanded (d) Tirupati and (e) Sri Jagannath Temple,
Puri

Transaction Limits: 

Daily limit of Rs 25,000/- at the ATM

Daily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions 
Combined daily limit of Rs 75,000/-

Fees:
There is no joining fee for State Bank ATM-cum-Debit (Cash Plus) card. Annual
maintenance fee of Rs. 50/- p.a. will be recovered from the second year of issue.

Apply for your card

If you already have a Savings Bank or Current Account with us, apply for State
Bank ATM-cum-Debit (Cash Plus) card at your branch.

State Bank Cash plus International Card:

This is an International ATM-cum-Debit Card with which you can enjoy shopping
at over 2,64,000 establishments in India and over 10.5 Million establishments
worldwide displaying Maestro logo, wherein the amount you spend on your card is
automatically debited to your account. Withdraw cash from over 8000 ATMs of
our group FREE and over 16000 ATMs of other banks under bilateral sharing viz.

41
 SILB, Solan

Andhra Bank, Axis Bank, Bank of India, The Bank of Rajasthan Ltd. Canara Bank,
Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, IndusInd Bank, Punjab
National Bank, UCO Bank and Union Bank of India apart from ATMs displaying
Master Card/ Maestro / Cirrus logo in India and more than 8,20,000 ATMs across
the globe for a nominal fee. In India, it would function as the State Bank ATM-
cum-Debit (Cash Plus) card.

WITHDRAWAL LIMIT: -

 i) Cash Withdrawals (per day):

 
  India Abroad
Minimum Rs. 100 Depends on the Bank
whose ATM is being used
 
Maximum Rs. US$1000 or equivalent
 
45000
 

ii) Transaction at POS (per day): 

  India Abroad
Maximum Rs. US$1000 or
1,00,000 equivalent
 

42
 SILB, Solan

Maximum permitted aggregate utilization in a day is Rs. 145000 in India and

equivalent to US$ 2000 abroad (subject to compliance with the RBI and Exchange
Control/ FEMA Regulations)

TRANSACTION COSTS: -
 The Card holder's account is liable to be debited with the following fees, if the transaction is made at an
ATM owned by bank other than SBI and its Associates: -

  

Type of Transactions at Transactions at Transactions at

transaction ATMs of Banks ATMs of other ATMs under
under Banks under Maestro /
arrangements for Maestro / Master
Master Card/
Bilateral Sharing Card/ Cirrus
Cirrus network
of ATM Network network (In India)
(Abroad)
(A) (B) (C)
Cash Rs. 25/- * Rs. 50/- * Rs. 150/- *
Withdrawal
Balance Inquiry Rs. 12/- * Rs. 12/- * Rs.15/- *

Fees:
The State Bank Cash plus International Card is available for one time joining fee
of Rs 200/-. Annual maintenance fee of Rs. 50/- p.a. will be recovered from the
second year of issue.

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 SILB, Solan

COMPANY
PROFILE

PUNJAB NATIONAL BANK

44
 SILB, Solan

PROFILE

45
 SILB, Solan

With over 38 million satisfied customers and 4668 offices, PNB has continued to
retain its leadership position among the nationalized banks. The bank enjoys strong
fundamentals, large franchise value and good brand image. Besides being ranked
as one of India's top service brands, PNB has remained fully committed to its
guiding principles of sound and prudent banking. Apart from offering banking
products, the bank has also entered the credit card & debit card business; bullion
business; life and non-life insurance business; Gold coins & asset management
business, etc.
Since its humble beginning in 1895 with the distinction of being the first Indian
bank to have been started with Indian capital, PNB has achieved significant growth
in business which at the end of March 2009 amounted to Rs 3,64,463 crore. Today,
with assets of more than Rs 2,46,900 crore, PNB is ranked as the 3rd largest bank
in the country (after SBI and ICICI Bank) and has the 2nd largest network of
branches (4668 including 238 extension counters and 3 overseas offices).During
the FY 2008-09, with 39% share of low cost deposits, the bank achieved a net
profit of Rs 3,091 crore, maintaining its number ONE position amongst
nationalized banks. Bank has a strong capital base with capital adequacy ratio as
per Basel II at 14.03% with Tier I and Tier II capital ratio at 8.98% and 5.05%
respectively as on March’09. As on March’09, the Bank has the Gross and Net
NPA ratio of only 1.77% and 0.17% respectively. During the FY 2008-09, its’ ratio
of priority sector credit to adjusted net bank credit at 41.53% & agriculture credit
to adjusted net bank credit at 19.72% was also higher than the respective national
goals of 40% & 18%.
PNB has always looked at technology as a key facilitator to provide better
customer service and ensured that its ‘IT strategy’ follows the ‘Business strategy’
so as to arrive at “Best Fit”. The bank has made rapid strides in this direction.
Along with the achievement of 100% branch computerization, one of the major

46
 SILB, Solan

achievements of the Bank is covering all the branches of the Bank under Core
Banking Solution (CBS), thus covering 100% of its business and providing
‘Anytime Anywhere’ banking facility to all customers including customers of
more than 2000 rural branches. The bank has also been offering Internet banking
services to the customers of CBS branches like booking of tickets, payment of bills
of utilities, purchase of airline tickets etc. Towards developing a cost effective
alternative channels of delivery, the bank with more than 2150 ATMs has the
largest ATM network amongst Nationalized Banks.
With the help of advanced technology, the Bank has been a frontrunner in the
industry so far as the initiatives for Financial Inclusion is concerned. With its
policy of inclusive growth in the Indo-Gangetic belt, the Bank’s mission is
“Banking for Unbanked”. The Bank has launched a drive for biometric smart card
based technology enabled Financial Inclusion with the help of Business
Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile
customer. The BC/BF will address the outreach issue while technology will
provide cost effective and transparent services. The Bank has started several
innovative initiatives for marginal groups like rickshaw pullers, vegetable vendors,
dairy farmers, construction workers, etc. The Bank has already achieved 100%
financial inclusion in 21,408 villages.
Backed by strong domestic performance, the bank is planning to realize its global
aspirations. In order to increase its international presence, the Bank continues its
selective foray in international markets with presence in Hongkong, Dubai,
Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway. A second branch in
Hongkong at Kowloon was opened in the first week of April’09. Bank is also in
the process of establishing its presence in China, Bhutan, DIFC Dubai, Canada and
Singapore. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal.
Under the long term vision, Bank proposes to start its operation in Fiji Island,

47
 SILB, Solan

Australia and Indonesia. Bank continues with its goal to become a household brand
with global expertise.
Amongst Top 1000 Banks in the World, ‘The Banker’ listed PNB at 250th place.
Further, PNB is at the 1166th position among 48 Indian firms making it to a list of
the world’s biggest companies compiled by the US magazine ‘Forbes’.
Financial Performance:
Punjab National Bank continues to maintain its frontline position in the Indian
banking industry. In particular, the bank has retained its NUMBER ONE position
among the nationalized banks in terms of number of branches, Deposit, Advances,
total Business, operating and net profit in the year 2008-09. The impressive
operational and financial performance has been brought about by Bank’s focus on
customer based business with thrust on SME, Agriculture, more inclusive approach
to banking; better asset liability management; improved margin management,
thrust on recovery and increased efficiency in core operations of the Bank. The
performance highlights of the bank in terms of business and profit are shown
below:

Debit Card

48
 SILB, Solan

PNB INTRODUCES ADD-ON DEBIT CARD :-

Share the convenience of PNB Debit card with your loved ones .Simply gift them
add-on card.

PNB Customers of CBS branches can get two add-on cards along with their own
Debit card for free. The person you are gifting the card to does not necessarily
have to be an account holder with PNB.

The add-on card can be issued in the name of spouse, dependent parents, and
dependent children not below 18 years. The add-on cardholders like the main
cardholder will also be covered for accidental death insurance of Rs. 1 lakh subject
to certain terms and conditions. The transactions done by add-on cardholders will
automatically get debited to the account of the primary cardholder who shall be
responsible for all the transactions made by Add On card holder/s.

Issuance of Debit Card from Call centre:-

"CBS branches customers of our Bank may also get PNB Debit Card simply by
contacting our All India Call Center over phone at the following no's :-
1800 180 2222 Toll free 0124-2340000 Accessible from mobile also.

ATM Sharing Arrangements

49
 SILB, Solan

PNB Debit Card is purely an on-line product. It is ATM-cum-Debit card having

“Maestro” branding which is sub-brand of MasterCard International. PNB Debit
Card bears ‘Maestro’ logo on the front and ‘Cirrus’ logo (for ATM usage) on the
back. Debit Cards can be used to withdraw cash through ATMs as well as used by
the customers at over 45000 merchant establishments accepting Maestro Debit
Card for shopping purposes. It is thus an ATM-cum-Shopping Card.

Personal Identification Number (PIN) is the key security feature of the Debit Card.
It is a four digit numerical number.

A few aspects of Bank’s Debit Card are highlighted as under:

Valid in all Maestro and Cirrus Acceptance Marks.

Acceptance in India at over 32,000 “Maestro” Merchant locations and over

4200 MasterCard ATM’s across 70 cities.

Wide acceptance at both Merchant Locations (including Utility bill

payment) and ATM locations across India

A PIN (Personal Identification Number) based magnetic Stripe Card which

provides the safety and security to customers, while accessing their funds
with the bank

PIN can be changed at all PNB networked ATMs

Initially available to account holders of CBS branches that are networked

It is offered absolutely FREE

50
 SILB, Solan

No pre-set limit on the card. Limit is equal to the available funds in the
customers’ account. Initially Rs.15,000 cash withdrawals and Rs.25,000 by
way of point of sale (POS) transactions per day are permitted

Card validity - Till the customer holds the account

Bank has tied up with Reputed Corporate and Local Merchants to provide
discounts on usage of card for payment through Debit Card. Corporate from
the entire spear are covered, to quote few are like Escorts, Max Health Care,
Apollo, Travel Gin, Cox and Kings, Holyday INN, Hans, Park. A list of tie-
ups is available

Charges applicable:
Cash Withdrawal - Rs. 24/- per transaction
Balance Enquiry- Rs. 12/- per transaction

PNB~SBI Bilateral ATM Sharing arrangement:

Charges applicable:

Cash Withdrawal - Rs. 22/- per transaction

Balance Enquiry- Rs. 10/- per transaction

51
 SILB, Solan

Branches eligible to issue Debit Cards:

Initially Debit Cards are issued to the customers of CBS branches only. All the
CBS branches are eligible to issue Debit Cards to their customers

Who is eligible for PNB Debit Card?

All existing customers who are maintaining minimum balance and who regularly
operate their account shall be eligible for the issuance of Debit Card. New
customers who open their accounts after introduction of the Debit Card shall also
be eligible for the issue of Debit Cards at the time of opening the account itself.

Existing ATM Cardholders who have done at least one transaction during the
immediately preceding quarter.

Debit Card facility shall be extended to the individual customers only, having
Savings Bank Account and Current Account. Debit cards shall also be issued to
individual customers having overdraft facility, which is in the nature of a personal
loan. This shall mean and include personal loans extended to individual customers
in the form of a regular overdraft limit such as clean overdraft facility or overdraft
facility against FD/NSCs/LICs etc. where operations through cheques are
permitted.

Debit Card can be issued in Joint Accounts with “Either or Survivor”/”Former or

Survivor” mandate. In “Either or Survivor” accounts cards can be issued to both
the account holders whereas in “Former or Survivor” accounts card can be issued
only to the Former. In joint Accounts where account has to be jointly operated
Debit Card shall not be issued unless mandate for operation of account is changed
to “Either or Survivor” or “Former or Survivor” basis.

52
 SILB, Solan

RECENT NEWS ON ATM SERVICES IN INDIA

ATM withdrawal fees from 15/10/2009. The news articles state that as per Indian
Bank’s Association recommendation, Reserve Bank of India has asked the banks
to impose the restrictions on third party ATM usage from mid-October. As a result,
the number of free cash-withdrawals from third-party ATM’s will attract a charge.
The transaction limit is set at Rs10,000/Saving Account Holders can withdraw five
times in a month free –of-cost. From the sixth transaction, the fee is Rs20/Current
Account Holders will be charged from the first transaction itself. BALANCE
ENQUIRY is still free.

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 SILB, Solan

Finding and Data Analysis

Q1. Do you have account in?

Table 1

Punjab National Bank 48

State Bank of India 14

Both 24

Others 14

Interpretation

As the diagram shows the no. of respondents in Solan. It has a proper mix of
different banks ATM card holders. PNB has the largest no. of customers having
48% and after this came SBI having 14% of customers out of 100 respondents.

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 SILB, Solan

Q2. Do you have ATM Services with your account?

Table 2

Yes 100

No 0

Interpretation

All the respondents have the ATM cards of their bank so this reveals that people
are more relying on ATM’s these days more than visiting their respective banks.

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 SILB, Solan

Q3. Which of these is the most important reason for possessing ATM card/s?
Table 3

Bank offered Free 32

For emergency purpose 62

Availability of many ATM centres 34

24 hour accessibility 80

Others 6

Interpretation
 According to people the most popular reason for possessing an ATM card is
it’s facility of 24 hours accessibility.
 After this came respondents who feel that ATM’s are mostly used for
emergency purpose.

Q4. How frequently do you use ATM card in a week?

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 SILB, Solan

Table 4

Less than 3 times 52

3-5 times 18

5 to 8 14

More than 8 times 16

Interpretation

 Most of the people use their ATM’s for less than 3 times in a week having
52% of people in its share.
 18% of people use their ATM’s for 3 -5 times a week.

Q5. What is the purpose/s for using ATM? (Tick one or more)

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 SILB, Solan

Table 5

Cash Withdrawal 100

Balance Inquiry 54

Balance Transfer 36

Others 6

Interpretation
 Majority of people use their ATM’s for cash withdrawal purpose having
51% of share.
 Only 27% of people use their ATM’s for balance enquiry.

Q6. How much time do you spend waiting in queue at ATM?

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 SILB, Solan

Table 6

PNB (48/100 Customers) SBI(14/100 Customers)

Less than 5 min 32 14

5 min to 10 min 10 0

10 min or more 6 0

Interpretation
 All SBI customers agree to this statement that they don’t need to wait much
in a queue. They all spend less than 5mins waiting in queue.

 Only 66 % of PNB customers agree that they have to wait less than 5 mins
in a queue. 21% people have to wait for 5 mins to 10 mins.

Q7. How long does it take to process your transaction at the ATM centre?

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 SILB, Solan

Table 7

PNB (48/100 Customers) SBI(14/100 Customers)

Less than 5 min 44 10

5 min to 10 min 4 4

10 min or more 0 0

Interpretation

 92% of PNB customers said that the transaction processing speed of an

ATM is good as it takes less than 5 mins.
 71% of SBI customers feel that processing speed takes less than 5 mins.

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 SILB, Solan

Q8. Have you ever been cheated or your ATM has been misused without your permission

Table 8

PNB (48/100 Customers) SBI(14/100 Customers)

Yes 1 0

No 47 14

Interpretation

A good thing comes in the survey that almost 100% of the people of both SBI
and PNB ATM card holders not been in any kind of fraud like misused or cheated.

Q9. Did you complaint for the fraud and any action taken by Bank Authority

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 SILB, Solan

Table 9

PNB (1/48 Customers) SBI(0/14 Customers)

Yes 1 0

No 0 0

Interpretation

Only one of the customer of PNB has a complaint of his ATM been misused which
is even resolved by PNB but maximum no. of people have never been cheated.

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 SILB, Solan

Q10. What are the additional services provided by your bank at ATM centres? (Tick one
or more)
Table 10

PNB (48/100 Customers) SBI (14/100 Customers)

Cash Deposit NA NA

Cheque Deposit NA NA

Bill Payments NA NA

Phone bank NA NA

Other NA NA

Interpretation

This question becomes invalid in Solan as none of the ATM centres in Solan
provide any kind of service like cash deposit, cheque deposit, bill payments, and
phone bank.

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 SILB, Solan

Q11. How much satisfied are you with your ATM service?
Table 11

PNB (48/100 Customers) SBI(14/100 Customers)

Highly Satisfied 02 04

Very Satisfied 14 06

Satisfied 32 04

Less Satisfied 0 0

Not Satisfied 0 0

Interpretation

 67% of PNB customers are satisfied with the services of their ATM and 29% are very
satisfied.
 44% of SBI customers are very satisfied and only 28% are highly satisfied from the
services of their ATM.

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 SILB, Solan

Q12. How much secured do you feel to use ATM card?

Table 12

PNB (48/100 Customers) SBI (14/100 Customers)

Highly Secured 06 0

Very Secured 03 10

Secured 37 04

Less Secured 02 0

Not Secured 0 0

Interpretation
 77% of PNB customers feel secured and only 13% fell highly secured which
is a good sign for PNB.
 72% of SBI customers feel very secured and only 28% feel secured in using
their ATM.

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 SILB, Solan

Q13. Are you satisfied with the number of ATM centres provided by your bank?
Table 13

PNB ( 48/100 Customers ) SBI (14/100 Customers)

Highly Satisfied 08 02

Very Satisfied 12 06

Satisfied 12 04

Less Satisfied 10 0

Not Satisfied 06 02

Interpretation
 Only 25% of PNB customers feel satisfied with the number of ATM’s while
same is the case with very satisfied customers.
 21% of PNB customers are not satisfied with the number of ATM.
 44% of SBI customers feel very satisfied with the number and 28% fell only
satisfied with the number of ATM.

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Q14. Are you satisfied with the locations of ATM centres provided by your bank?
Table 14

PNB ( 48/100 Customers ) SBI (14/100 Customers)

Highly Satisfied 14 02

Very Satisfied 08 02

Satisfied 16 04

Less Satisfied 10 06

Not Satisfied 0 0

Interpretation

 43% of SBI customers are not satisfied with the location of ATM centres
while PNB has 22% of customers feel the same.
 33% of PNB customers feel satisfied with the location and 29% of SBI
customers feel the same.

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Q15. Do the ATM centres provide the denominations of currency you require?
Table 15

PNB (48/100 Customers) SBI(14/100 Customers)

Always 0 02

Sometimes 38 06

Never 10 06

Interpretation
 79% of PNB customers feel that ATM’s provide the denomination of notes only
sometimes.
 21% of PNB customers feel that they never provide the denomination they want.
 43% of SBI customers feel that ATM’s provide the denomination of notes only
sometimes.
 43% of SBI customers feel that they never provide the denomination they want.

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Q16. Do they run out of cash frequently?

Table 16

PNB (48/100 Customers) SBI(14/100 Customers)

Always 02 02

Sometimes 40 12

Never 06 0

Interpretation
 83% of PNB customers feel that, yes they sometimes run out of cash.
 86% of SBI customers feel that, yes they sometimes run out of cash.

 14% of SBI customers feel they always run out of cash.

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FINDINGS AND CONCLUSION

This project was a great experience for me and I really learnt a lot of things
from this project. This project gave us the knowledge and information about ATM
machines, banks offering ATM services and also about the people and their
attitudes and perceptions towards ATM’s.

I have found,

 People want the ATM centers to be very close to their houses or place of
work.

 People want that they should not be made to wait in queues in front of ATM
centers.

 The ATM machines sometimes take a lot of time to process a transaction

and therefore the customers have to wait for a long time in front of the
machine and which is “irritating” according to some respondents and if
possible the banks should improve the software they use and reduce the time
required by the customers.

 PNB and SBI ATM centers do not provide additional services like cash
deposit, cheques deposit, bill payments etc. at any of its centers in Solan,
which many people want but they don’t get it and leads to their
dissatisfaction.

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 I have also found in this survey that many of the respondents felt that they
were feeling secured using the PNB and SBI ATM card services and this has
led to increased satisfaction level of these respondents which is a good sign.

 I also conclude from this survey that most of the people are not satisfied
with the number and location of the PNB and SBI ATM centers. So they
insisted that the number should be increased to give enhanced service and
satisfaction to its customers.

 People were not happy to say that the PNB and SBI ATM center provides
the currency in the denomination they want.

 Another good finding from this survey was that the ATM centers of PNB
and SBI bank only run out of cash sometimes even though it is one of the
largest used ATM centers.

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RECOMMENDATIONS

The findings and the conclusions reveal that there is a lot of changes which
can be brought about to improve the perception and satisfaction of the customers
towards PNB and SBI bank’s ATM centers.

I recommend that,

 PNB and SBI bank should increase the number of ATM centers and at
strategic positions.

 Software used by the bank should be updated and fast so that people are not
made to wait in the queue.

 PNB and SBI bank can bring all its services on the ATM machines.

 Facilities like cash deposit should also start at the ATM centers.

 To increase the customer base and the customer satisfaction the ATM
facility should be made as secured and safe as possible. PNB and SBI ATM
is one of the safest but still there is scope for improvement.

 Cash less than 100 Rs. should be dispensed from ATM to maintain the
savings and satisfaction level of customers.

 Voice response system enabled ATM machines should be installed to make

machines friendlier to customers.

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ANNEXURE

BIBLIOGRAPHY

www.pnbindia.in
www.statebankofindia.com
www.scribd.com
http://www.google.co.in/
Research Methodology – C R Kothari
Marketing Management – Philip Kotler
Kotler on Marketing
“It is no longer enough to satisfy customers. You must delight them.”

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QUESTIONNAIRE
Name____________________________ Age ___ Profession ________________________
Q1. Do you have account in?
a) PNB b) SBI
c) Both d) others _______________ (specify)
Q2. Do you have ATM Services with your account?
a) Yes b) No
Q3. Which of these is the most important reason for possessing ATM card/s?
(Tick one or more)
a.) Bank offered Free b) For emergency purpose
c.) Availability of many ATM centres d.) 24 hour accessibility
e) Others (specify) ________________
Q4 How frequently do you use ATM card in a week?
a.)Less than 3 times b.)3 – 5 times
c.)5 – 8 times d.)More than 8 times
Q5. What is the purpose/s for using ATM? (Tick one or more)
a)Cash withdrawal b)Balance enquiry
c) Balance Transfer d) Other (Specify)______________
Q6. How much time do you spend waiting in queue at ATM?
Less than 5 mins 5 mins to 10 mins 10 mins or more
Q7. How long does it take to process your transaction at the ATM centre?
Less than 5 mins 5 mins to 10 mins 10 mins or more
Q8. Have you ever been cheated or your ATM has been misused without
Your permission
Yes No
Q9. Did you complaint for the fraud and any action taken by Bank Authority
Yes No

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Q10. What are the additional services provided by your bank at ATM
Centres? (Tick one or more)
a) Cash Deposit b) Cheque Deposit c) Bill Payments
d) Phone bank e) Other (specify)_____________
Q11. How much satisfied are you with your ATM service?
Highly Satisfied - Very satisfied – Satisfied-
Less satisfied - Not Satisfied -
Q12. How much secured do you feel to use ATM card?
Highly secured - Very secured – Secured -
Less secured - Not secured -
Q13. Are you satisfied with the number of ATM centres provided by the bank?
Highly Satisfied - Very satisfied – Satisfied-
Less satisfied - Not Satisfied -
Q14. Are you satisfied with the locations of ATM centres provided by your bank?
Highly Satisfied - Very satisfied – Satisfied-
Less satisfied - Not Satisfied -
Q15. Do the ATM centres provide the denominations of currency you require?
a) Always b) sometimes c) never
Q16. Do they run out of cash frequently?
a)Always b) sometimes c)never
Q17. What according to you are the shortcomings of your bank ATM centre?
__________________________________________________________
Q.18. What extra facilities do you expect from an ATM centre?
Please specify____________________________________

Thank You

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