Advantages And Disadvantages Of Atm

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ATM which is Automated Teller Machine, one of the alternate delivery channel , it is a computerized machine that provides the customers of the banks the facility of accessing their account for dispensing cash and carry out other financial & non-financial transactions without the need of actually visiting the branch. It is also popularly known as Any Time Money. It provides both customers and bank many advantages including being cost effective, quick services and one of the major advantage is 24X7 accessibility and also convenience to a customer. The major disadvantage that a bank has to face pertaining to an ATM is lack of consumer education on its usage that ultimately affects the functioning of the channel. There is emerging a need of customer…show more content…
It was observed that a number of ATMs are present in a cluster which used to destroy the very purpose of setting up an ATM so the RBI, i.e. Reserve Bank of India has introduced the new concept of White Label ATMs so that only one ATM is there to provide the services to customers without the name of any specific bank. White label ATMs are set up by Non-Banking Financial Companies (NBFCs) having Net worth of Rs.100 crores and above. Sponsored Bank maintains cash for White label ATM. The rationale of allowing non-bank entity to set up White Label ATMs has been to increase the geographical spread of ATM to enhance customer service. An ATM can be onsite ATM or offsite ATM. Onsite ATM is the ATM which is there with the bank branch which is linked with a lease line. Whereas an offsite ATM is not there adjoining the branch rather it is located somewhat far from a branch and may be linked by V-SAT with a nearby branch. While setting up an offsite ATM many factors are taken into considerations which are as follows- • 24X7 Availability • Parking Area in front so that the customer experiences convenience while transacting • 4X4 terrace V-SAT…show more content…
Vijesh R et al (2011), in the research paper mentions the benefits of providing valuable services through delivery channels “Deliver the services simpler , Deliver the services fast , Deliver the services securely , acquire new customers retain their existing customers, keep customers highly satisfied on the services provided , Lower operational cost, Lower transaction processing cost , Wider customer base irrespective of geographical barriers , Higher profits on bottom-line.” Pandian et al (2012), said that in this modern world where money plays an important role for survival. ATM helps the people to take money whenever needed by them and also during emergency conditions. Davies et al (1996), identified that secure and convenient location, adequate number of ATM and functionality of ATM plays an important role in customer

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