IIBF- ATM, CDM

1. ATM
Unit II

2. HISTORY
• 1960-Introduced
• I st ATM- Barclays bank(London)-1967
• 1988-Mastercard-Cirrus(largest ATM Network)
• Accessibility-50000 Location
• 1991- Maestro card
• 1986-Visa-Plus Network
• Plus-VISA Plus-Visa credit, debit & prepaid cards as well
as ATM
• 1 Million Linked ATMs-170 Countries

3. Product Features
• Withdrawal of cash
• Make Balance enquiry
• Obtain Mini statement
• Open FD
• Transfer funds
• Pay credit card bills
• Request for cheque book
• Update Mobile number/ Aadhar No
• Pay Insurance Premium
• Pay utility bills
• Deposit cash
• Deposit cheque

4. Types of ATM
Offsite ATM
Onsite ATM
Worksite ATM
Mobile ATM

5. White Label ATM
• White Label ATM- No Bank Logo
• 2013-RBI-License for Non bank entities
• TCPSL’Indicash’-Set up-First White Label ATM
• RBI License- 2 ATM(5000-50000), 1 ATM(Above 50000)
• First ATM-HSBC Bank -1987

6. Brown Label ATM
• Operations- Third Party
• Operates ATM, Pays Rent/Bill..
• Bank---ATM Network system(NFS)
• Hardware-Service provider
• Connectivity & cash management-Sponsor bank
• ATM- Bank Logo
• Cost reduction

9. ATM Networks
• ‘Swadhan’ -1997
• Launched-IBA
• Dismantled-2003
• IDBRT-Structured Financial Messaging System-2001
• Onsite ATM-Bank server
– Now Onsite & Offsite -CBS (Central switch)
• Connected via Leased line or VSAT
– VSAT-Satellite antenna & ATM
– Bank uses MPLS- Cost effective
• ATM Switch- CBS
– Identifies Card Number, account no, exchanges data &
verifies-CBS- Messages ATM
– ATM-ATM Switch-CBS
• All ATM-Bank’s independent switch
• Other Bank ATM- Interconnected switch
– Settlement- later

10. ATM Networks
• National Financial Switch- IDRBT (Connected network)
• IDRBT-RBI-Electronic banking facility(till 2009)
• 2010- NPCI
• ATM Network Consist of:
– Issuing Bank
– Acquiring Bank
– ATM Network provider
– Cardholder

11. ATM Network Stakeholder
ON-US
OFF-US
Acquirer
Switch
Issuer
Switch
NFS
Customer
Account

12. Profitability of ATM
➢ Saves manpower
➢ Reduces operational cost
BANKS-Benefits:
○ Extended hours-Alternative
○ Cheaper- large no of transactions
○ Alternative-opening new branches
○ Reduces expenses
○ Reduces transportation of cash
○ Any location
○ Publicity
○ Makes Bankers- focus on Anlaytical & creative network

13. Instant Money Transfer
★ Domestic money remittance service
★ ATM - a customer interface
★ Sender--Receiver mobile number(ATM)
★ Receiver-- IMT enabled ATM(Partial Secret code)
★ Receiver-need not be an customer of same bank
Use of service
★ Needs instant money
★ Receiver doesn’t have bank a/c
★ Remitter- don’t know - receiver’s bank a/c details
★ Receiver - not nearby

14. CASH DEPOSIT MACHINE

15. CASH DEPOSIT MACHINE
A Cash Deposit Machine (CDM) allows you to deposit money
with just your debit card or account number. Instant money credit
anytime of the day throughout the week is one of the most
remarkable features of Cash Deposit Machine.

16. CASH DEPOSIT MACHINE-FEATURES
❖ Instant credit in the account
❖ Immediate receipt generation/ Paperless transaction
❖ No need to fill up deposit slips
❖ No need to stand in queues
❖ No need to arrange denominations

17. CDM Network Planning – Onsite/ Offsite
❖ Onsite CDMs unit originated inside the premises where there is a
bank branch thus every the physical branch and thus the CDMs
used. This may be brought up as being on electronic computer and
this might be used for several functions. Several people can use this
to avoid the lines that unit gift inside the branch and thus save on
the time required to end their transactions.
❖ Offsite CDMs unit originated on a standalone basis. This means that
the bank contains an area where there is alone associate degree
CDM machine then this becomes associate degree off electronic
computer CDM. This may be done to substantiate that the bank
reaches resolute tons of square measurable region units that people
are able to use its services even once there is no bank branch inside
the area.

18. CDM-Profitability
● The machine types notes quickly (600 notes per minute) and
generates a close report showing the denomination
breakdown, saving each time and workforce prices.
● Includes associate degree intuitive and advanced counterfeit
note detection operate to present peace of mind to
businesses
● Installing a money deposit machine considerably reduces
this risk by functioning as a extremely secure safe.
● The machine permits period of time management and
observation of the money financial gain level.
● They slot in any size of premises and are very economical as
they’re obtainable to either lease or get to suit the wants of
varied sizes of operators.

19. CDM-Risk Management and Frauds
★ Install door sensors, cameras, Sensors- vibration,
temperature detection, smoke detection…
★ Control via Programming
★ Central monitoring facility
★ Live videos
★ Alarm-attempts to open atm vault

20. Backend operation Technology
★ Authorization:
○ Validates funds-A/C
○ ATM Card--Issuing bank(Response)--Acquirer
○ Approved
○ Declined
■ Business Declines
■ Technical Declines
★ Clearing & Settlement:
○ NPCI-Settlement instructions
○ NFS-Calculates net amount
○ Net Debit/ Net Credit
○ NPCI-Debit/credit
○ Settlement A/C-RTGS with RBI

21. CASH RECYCLERS
Unlike an ATM—from which you can only withdraw cash—
cash recyclers allow you to deposit cash as well. Just as cash
withdrawal at an ATM reflects in your account balance
immediately, the cash deposit also takes place in real time and the
transaction reflects in your bank account at once.
When you deposit cash, a cash recycler counts the currency
notes and displays the amount denomination wise and the total
amount inserted in machine for deposit. Once it displays the
amount, you have to confirm if the amount is correct, and the
transaction will then be complete.

22. CASH RECYCLERS
conti...
To use the recycler for cash withdrawal, you can use an ATM
or debit card like you do for any ATM transaction. However, in
case you want to deposit money through a cash recycler, you have
to be a customer of the specific bank that runs the cash recycler.
If you are depositing money by inserting your debit card then
you can deposit up to Rs2 lakh per day. You can’t deposit above
Rs50,000 if your Permanent Account Number (PAN) is not
registered with your bank.
In case you are just typing your account number without giving
your debit card details to the cash recycler machine, you can
deposit only up to Rs20,000 per day.