ATM (Automated Teller Machine)
The innovations in banking field have paved way for various new facilities. The important of them are ATMs. The ATMs are electronic machines which are operated by a customer himself to deposit or withdraw money from his accounts without going to Banks. It is easy to transact through ATM. The Banks have installed on-site and off- site ATMs at important centres of cities. Some of the ATMs are installed within the branches. These machines function 24 hours of the day, 7 days of the week. The ATM works like a cashier of the Banks.
An ATM located within the premises of a bank branch is known as ‘on-site’ ATM and an ATM away from the branch premises is referred as ‘off-site’ ATM. RBI has permitted banks to open off-site ATMs without prior approval.
The ATMs should provide friendly access and interface to physically challenged persons and should have proper security measures.
Banks should reimburse the amount wrongfully debited on account of a failed ATM withdrawal transactions within a maximum period of 12 days from the date of receipt of customer complaints. Compensation @ Rs. 100 per day of delayed credit shall be credited to the customer’s account.
The ATM location should display the information that complaints should be lodged at the branches where customers maintain accounts to which ATM card is linked with the telephone numbers of help desk/contact persons.
The card issued by Banks in India should be enabled for use at any bank’s ATM within India. No charges are payable for using other banks’ ATM for upto 5 cash withdrawal/balance enquiry transactions per month. In any case, charges cannot exceed Rs 20/- per transaction.
Banks set limit for cash withdrawal by customers. For cash withdrawals at other bank ATMs, the limit is Rs. 10000/- per transactions.
Credit card is used to pay for shopping, book ticket (Film, Train, Air) without carrying cash. The credit cards are issued by banks. The credit card users need to pay the total amount spent through the card once in a month to the bank.
Unlike credit cards, in the case of debit cards your spending will be immediately deducted from your deposit account maintained with a bank. The debit cards are issued by the banks.
Smart Card differs from Debit or Credit Card in the sense that Smart Card has built in electronic chip in place of magnetic strip in ATM card. The personal details along with biometric features and account details are incorporated in the electronic chip. As a result the transaction are by card holder are electronically reconciled on the card it self. The Smart Card is genetic term carrying both credit and debit transactions. Use of Smart Card is considered as most suited and helpful device for Financial Inclusion, recognizing its several advantages.
Mobile Banking is a term used for performing account transactions, balance checks, payments via mobile device such as mobile phone. Most of the mobile payments fall in to four categories: Mobile banking enables:
- Users to perform banking transaction using mobile phone like balance checks, fund Transfers, bill payment etc.
- Purchase goods over internet or phone delivery.
- Person to person fund transfers.
- To pay for goods at merchant location-point of sale.
Services offered through Mobile Banking
- Balance Checks.
- Mini statement and checking of account history.
- Alerts on account activity or passing of set thresholds.
- Monitoring of term deposits.
- Access to loan statements.
- Access to credit card statements.
- Mutual funds/equity statements.
- Insurance Policy management.
- Pension plan management.
- Status on cheques, stop payment on cheques etc.
Bio-Metric hand held Devices
A customer can go to a Business Correspondent of a bank and perform operations like savings deposits/withdrawals of cash, receipt/repayment of loans, transfer of fund to another bank account, etc. using these devices. It is a small machine with biometric and card swiping facility for security.
Several Banks offer the internet banking facility through which many transactions (other than cash deposit and withdrawal) can be performed. Computers like PCs, laptops and other electronic devices like palmtop may be used.
Kiosks may be for information purpose, banking transactions or both. These may be automated or manned by business correspondents. They may provide banking services and/or information on products, location, weather, etc.
Facilities provided to the SBA/C holders through Electronic Channels
- Multi City Cheque VISA
- Money Transfer
- Payment of insurance premium
- Inter Bank Funds Through RTGS/NEFT
- Direct Tax payments through branches
- International Debit Card SMS Banking Internet
- Banking Utility Bill Payment Mobile Recharge
- Auto Sweep Facility
Points to remember while operating through ATM/ Debit/ Credit Cards/ Internet Banking:
- Do not share your PIN / User ID and Password (for Internet Banking) with anyone or write it down anywhere
- Do not speak out your PIN loudly or enter it when others are looking over your shoulder
- Do not let anyone enter the PIN on your behalf, always enter the PIN yourself.