Chapter-1BACKGROUNDINTRODUCTION:Banks are the backbone of our society. Banking, when we come to it, ispeople. It is not figures, files and ledgers. Banks employ all these and much moremerely meet their customers’ needs naturally this call for, careful conducting of thebusiness by them.Banking organization primarily is service organization. Complaints are aticklish business. Handling complaints is part of business life everywhere. This isespecially true of banking as they serve individual as well as the country as awhole. Complaints however are valuable because they direct attention to possibleareas of improvement in operating efficiency.The objective of every bank is to work effectively and give good resultpossible only by giving good customer service to its customer. If the customerservice is efficiently handled it is sure that the bank will gain more reputation.

Automated Teller Machine (ATM)Nowadays ATMs are playing a vital role in banking sector, for easy accessing the account from anywhere in the world. Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial transactions without the need of actually visiting a bank branch

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NEED FOR THE STUDYBanking working has been witnessing tremendous changes. Right from the traditional functions the banks are now rendering various services to shift the requirement of varied people. After globalization our Indian banks had to compete with foreign banks. Ultimately our banks have been introducing innumerable service. The present study aims at finding out the awareness of the customers about the modern banking service and how for the customers utilizes the service. The following are stated to be in the need for the study-- •To know the overall concept of banking AWARENESS.

•To know about the ATM services.

•To know the necessity banking AWARENESS. .

•To understand the knowledge of a man on banking AWARENESS.

•To know the reasons for not use of ATM services.

In short, this study is conducted so that the everyman get interest on banking services.

The Objective of the Project Work:

1. To know the electronic banking as an opportunity for countries with underdeveloped financial systems to leapfrog developmental stages.

2. To study about the customers awareness about the modern services.

3. To study about the expectations of the customers.

4. To offer suggestions to the banks to create awareness amongst customers.

5. To offer suggestion to the customers to have an awareness of the bank service. From of this we want to know about the banking services and understand the movement of an ATM user in our KULGACHIA, ULUBERIA area.

METHODOLOGY

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Methodology used:

A. PRIMARY DATA: -

A sample questionnaire asked to 50 people.

B. SECONDARY DATA :-

Internet

Reference books

Limitation of the study:

“E-BANKING in India- a study” is not free from limitation; some of the limitations are as follows----1. This study is very much based on secondary data. Data have been collected from bank website and various other sites. Therefore quality of the study is entirely based on correctness of basic data. The study is based on first information and may not be good indicator for the future.2. The study of this project is limited to 50 people of ULUBERIA, HOWRAH, and WEST BENGAL who have been questioned to understand the project well.3. Since the study is an academic effort, availability time was the constraint.

CHAPTER PLANNING3

Project report has been completed in four chapters viz. introduction; conceptual framework; presentation of data analysis and findings and finally conclusion and recommendation for further research.Chapter I: Deals with the introduction which covers background, objectives, methodology, and limitation of the study. This chapter summarizes the theme and the nature of work done by this study.Chapter II: Deals with the conceptual framework of this study. Here only national perspectives have been taken into consideration.Chapter III: Highlights presentation of data analysis, make a comprehensive and evaluative discussion on the findings.Chapter IV: Summarizes brief conclusion and recommendation. This chapter also gave guidelines to the researcher and scholar to make research work on the untouched part of the study in future.

CHAPTER – II

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CONCEPTUAL FRAMEWORKThe structures of banking differ from country to country. It depends on the Economic conditions, traditions and political conditions in the country concerned. With the development banking institutions, various system of banking have come into existence, the most important and popular systems of banking are the branch and unit banking. There are also three more types of banking systems, namely, group banking or holding company banking, chain banking and Corresponded banks. Banking services is main part of banking system. Now a day’s ATM services is most popular not only in India, all over the world. Hare we discuss about the banking services and ATM.

BANKING FUNCTIONS (1)Accepting time deposits(2)Accepting current account(3) Issuing and paying cheques(4)Collecting cheques crossed, uncrossed for its customers.

Section 5(b) of the banking companies Act defines banking “as accepting for the propose of lending or investment of deposits of money from the publicrepayable in demand or otherwise, withdraw able by cheques, draft, order orotherwise”operation and the size of the bank are smaller and far more limited than is the caseunder the branch banking system.The unit banks are linked together by a system of correspondent banks. Abank in a small town as correspondent bank in the city and the bank in city has inits turn a correspondent hank in the small town. The arrangement helps each bankto make remittances through the correspondent banks.Group banking is a system where groups are brought under the control of aholding company. The holding though each bank in the group has got separateentity. This type of banking system is used not only for securing centralizedmanagement but also for bringing together the banking corporation and othertrading corporation. It is possible under this system because the holding may haveboth banking companies as well as non-banking companies as it subsidiaries.It is claimed that the group banking system has certain advantages. Every

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bank need not carry large reserves. The cash reserves are concentrated in the handsof the biggest of the group. They are transferred to the other banks in the group intimes of need. But there is no legal obligation for transfer of funds from one bankto another, through both of them happens to be subsidiary of the same holdingcompany. In general, the group banking system reaps al the economies of largescaleoperations.It can cut down the operating cost and improve the efficiency ofmanagement. There are certain disadvantages too. It is not desirable to combinebanking and non-banking companies a holding can have both banking and nonbankingcompanies its subsidiaries. In its anxiety to make more profits the holding company may ignore some of the sound principles of banking and therebyendanger the position of the banking company in the group. Universal BankingBanks have opened branches in different regions and are thus withinthe reach of the people. It is universal banking which is the order of the daynow. That is, banks will undertake all kinds of activates including insurance,home finance, hire-purchase finance, agriculture, industry and other servicesectors, Thus, as financial intermediary, banks have enabled customers touse credit cards for their transactions and have become part and parcel oftheir live development employment opportunities at the district level. Later on,Service Area Approach was adopted in 1978 by which certain specific areaswere allotted to the banks for launching different economic programmed forthe development of such areas.MODERN SERVICE

1. The development of trade:In the post independent era, the development of trade has greatlyinfluenced the role of commercial banks. Banks have not only played amajor role in the domestic trade, but also in the foreign trade. During theperiod between 1990 and 2000, Indies foreign trade has gone up from 18billion dollars to 42billion U.S. dollars that is, nearly 90% of the foreigntrade is financed by commercial banks. To enable the commercial banksto provide finance even in foreign Exchange, the Exam Bank (Export –

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Import Bank) has provided different refinancing facilities.Banks help traders by discounting of their bill or in purchase of theirbills by which immediate financial assistance is available and the tradersare able to increase their turn over. This improves their profitability andthey can even face competitive markets by undertaking business with alesser margin of profit. The lesser margin of profit is compensated by ahigher turnover of business. Thus the bank is not only promoting tradebut also helps the businessmen to expand their business and thereby thenation is made to earn the precious foreign exchange.

2. Promoting InvestmentsWith the development of capita I market and with the change in theindustrial policy, banks have started playing a pivotal role in promotinginvestments in various industries. Banks have directly involvedthemselves by acting as underwire / cry or indirectly they have helpedcompanies by providing loans or by contributing to their shares anddebentures in the in the.

ATM – Automatic Teller Machine: Under this system, a customer canwithdraw money by using his credit card. The customer who wants to availATM facility will be given a code number, which will be kept secret by thecustomer. When a customer, wants to withdraw money through the ATM, first he has to insert the credit card into the machine. On the computer screen connected to the machine, information will be screened. The customer will have to give the PIN (personal intelligent number) by pressing the key board of the computer .Then on the screen the amount to be withdrawn will be asked. The customer again usesthe machine for in brining the amount required. Immediately, currency notesaccording to his requirement sill through the machine.Along with this a small chit containing his account number, the amountwithdraw and his balance credit amount available will come out in the form of aprint out. Thus, a customer without entering the bank premises can withdrawmoney even during non-banking hours. As this system does not involve thesignature of the customer, it is important for the customer to keep his ATM cardand the PIN safely. Or else anybody who comes to know of the PIN and who getshold of the credit card can withdraw money without the knowledge of the

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customer. The ATM facility is available in all Metropolitan cities and a customercan within money in any ATM anywhere in the country.

A block diagram of an ATM

ATM is 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 EEP4(similar in layout to a Touch tone or Calculator keypad),

manufactured as part of a secure enclosure. Secure cryptoprocessor, generally within a secure enclosure. Display (used by the customer for performing the transaction) Function key buttons (usually close to the display) or a Touchscreen (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) Sensors and Indicators

Due to heavier computing demands and the falling price of Personal Computer-like architectures, ATMs have moved away from custom hardware architectures using microcontrollers and/or application-specific integrated circuits to adopting the hardware architecture of a Personal Computer, such as, USB connections for peripherals, Ethernet and IP communications, and use personal computer operating

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systems. Although it is undoubtedly cheaper to use commercial off-the-shelf hardware, it does make ATMs potentially vulnerable to the same sort of problems exhibited by conventional Personal Computers.

Important Points OF Automated Teller Machine :

Technology Used: Broadband Integrated Service Digital network (BISDN)

Operating systems used in ATMs Primarily: Windows XP Professional and Windows XP Embedded

Communication Mode: Both Data and Voice

Operates on: layer 2 in OSI Model (Data Link Layer)

Connection Mode: Point-to-Point

Size of ATM Cells: 53 Bytes (48 bytes of data and 5 bytes of header information)

Personal Identification Number (PIN):-

PIN is the numeric password for use at the ATM. The PIN is separately mailed/handed over to the customer by the bank while issuing the card. This PIN has to be reset to a new PIN by the customer. Most banks force the customers to change the PIN on the first use.The PIN number should not be written the card, card holder etc as in such cases the card can be misused if card is lost/stolen.

ATM Encrypting PIN Pad

Facilities available at ATMs Account Information Cash Deposit

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Regular bills payment Purchase of Re-load Vouchers for Mobiles Mini/Short Statement Loan account enquiry

There are two types of cards supported by ATM

ATM Debit Card:

ATM Debit Card is card given by bank to access your account easily using a machine called Automated Teller Machine (ATM). Debit cards can be used for shopping purposes, without carrying the money. You can use Debit cards while purchasing, but you must have money in your account. Purchased amount will be deducted immediately from your account.

Advantages:

No need to carry money with you You can use it for shopping purpose No need of filling withdrawal and deposit slips Money Security: No one can access it without knowing PIN Number You can access your account from any corner of the world, no need to visit

bank branch Availability (24*7 Services)

Disadvantages:

Sometimes you may face Server-Down Problem Forgetting of Pin Number Fees charged for using card in different bank may be expensive Limitation of cash withdrawal

Credit Card:

Credit card is different from debit card; in debit card you must have money for using it. But for using credit cards, it’s not necessary. If you use credit card for

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purchasing purposes it does not deduct your money immediately. Bank will pay the vendors and sends the bill to the customer every month.

SYSTEM STUDY AND ANALYSIS

Existing System:

v      The existing system is manual system.

v      The manual system is prone to error.

v      This system involves a lot of manual entries with the application to perform a desired task.

v      Usage of papers and records in the process leads to less efficiently less productivity.

v      Increase lots of mistakes while writing in paper.

v      Time delay between the user and customer is reduced.

v      For this reason the new system in invented.

Proposed System:

The system customer transactions, satisfies the requirements of the existing system in full-fledged manner.  Through this system, customer can make fast transactions and view the last transactions easily.

System Analysis:

Understand the problem before the system to create analysis model there is a tendency to rush to a solution, even before the problem is understood.

Develop prototypes that enables user to understand how human/machine interaction will occur.  Since the perception of the quality of software is often based on the perception of the “friendliness” of the interface prototyping is highly recommended.

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Record the origin of and the reason for every requirement.  This is the first step-in establishing traceability back to the customer.

Use multiple views of requirements building data, functional and behavioral models provide the software engineer with three different views.  This reduces the likelihood that something will be missed and increases the likelihood that inconsistency will be recognized.

Rank requirements.  Tight deadlines may preclude the implementation of every software requirements to be delivered in the first increment must be identified.

Work to eliminate ambiguity because most requirements are described in a natural language, the opportunity for ambiguity abounds.

System planning:

v      Analysis principles are applied and a model of the software to be build called a planning (prototype) is constructed for customer and developer assessment.

v      The close-ended approach is often called throwaway prototyping using this approach a prototype serves solely as a rough demonstration of requirements it is then discarded and the software is engineered using a different paradigm.

v      An open-ended approach, called evolutionary prototyping uses the prototype as the first part of an analysis activity that will be continued into design and construction the prototype of the software is the first evolution of the finished system.

Feasibility Study:

Technology:

This system is technically feasible, because the system activated by computers and recent technology.  We use client / server technology which is powerful and very user friendly.

Finance:

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It is financially feasible.  There is no need of spending over money.  Mainly this system constructed by existing devices only.  Since we use visual studio dot net as a front-end it was most power-full, small and portable across platforms and operating systems both at the source and at the binary level.  This project reduces the number of workers wage also.

Time:

This system really time-to-market beat the competition.  Because the system developed with in a time span and worked based on time event.  The time taken to access the account is very less and avoids unnecessary waiting that was in the traditional system.  Although it uses less time but its performance is very well.

Resources:

This system will use the well known resources.  Where there is no need of any special kind of resource.  It uses only the required databases, tables only.

ATM Card Fraud Awareness

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You are urged to be vigilant and cautious when using your Debit or Credit card be it at an ATM, Retail store, Restaurant or Hotel POS machine.

Types of Card Frauds

Be alert to the following incidents that could result in your card being compromised and thereby facilitating fraudulent transactions against your account:

1. Theft of the Bank Card and PIN whereby you keep the Card and written PIN number in the same wallet or purse;

2. Through card swapping, especially when you travel abroad whereby your card is retained and a card that looks similar to yours is returned to you.In order to obtain your PIN, a hidden camera may be trained on the POS PIN number pad or the Cashier may physically observe you as you enter your PIN;

3. An ever-increasing number of Card Skimming incidents are also occurring locally and internationally. Card information skimming is perpetrated through any of the following actions:

A skimming device that is attached to a card reader on an ATM, Self Service Terminal or point-of-sale (POS) device. In order to obtain your PIN, a hidden camera may be trained on the number pad; or else one of the perpetrators or the Cashier may be physically observing you as you enter your four or five digit PIN;

Either one or two parties working in tandem as follows; they will tamper with the ATM machine so that the card is not correctly accepted by the machine and is not retrievable after you have entered your PIN. Alternatively, someone will distract you while you are retrieving the card from the ATM card reader slot with the aim of swapping your card with another stolen one. During the above processes there may be a hidden camera or another person watching as you enter your PIN;

When you genuinely hand over your card to make a payment. In this case, one of the most common scenarios used is for the cashier to ‘clean’ your card on his or her clothing, or to move the card below counter height where the POS device is situated. In a matter of seconds the card is then swiped through a skimming magnetic card reading device which may be smaller than the human hand.

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The information on the magnetic strip can then be encoded onto another white card and your legitimate card can then be replicated in moments. The white card created is of no use in its physical form unless the perpetrator has your PIN. In order to obtain it a hidden camera may be trained on the number pad; or else one of the perpetrators or the Cashier may be physically observing you as you enter your four or five digit PIN;

Your card could also be compromised when you are genuinely using your card details for online or telephonic purchases, where your card number, name, expiry date and CCV number are disclosed to the parties involved. If the website is not a MasterCard or VISA certified secure or legitimate site, to begin with, then the card details supplied can be used to make any number of purchases online or telephonically.

Ways to Safeguard your Bank Card and or PIN:

In order to ensure the safety of your Bank Card and or PIN and eventually the money in your account, you are advised to adhere to the following guidelines:

o Keep sight of your bank card at all times if it is not in your wallet/purse; shield or cover your hand when entering your PIN on a POS or ATM PIN pad.

o Never share your PIN with anyone, even family and friends, and never write it down or store it electronically on a cell phone or laptop but memories it instead. If the card is stolen along with the cell phone or laptop, the money in your accounts is at risk.

o Refrain from allowing your children to draw money using your card and PIN, as they are often targets of card fraud perpetrators;

o If an ATM is unlit and appears offline, or there are people loitering near the ATM, do not use it.

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o If the retailer, hotel, restaurant or merchant doesn’t have a wireless POS machine then accompany the card to the POS machine.

o Always shield your hand when entering your PIN, regardless of whether you feel secure or protected.

o Never accept assistance from anyone while entering your PIN in an ATM, even from security staff or bank employees.

Chapter 3

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PRESENTATION OF DATA ANALYSIS, FINDINGS:-

AGE(out of 50)0

5

10

15

20

25

30

18-2020-2525-----

Interpretation:This chart indicates the age of 50 people. Out of this 18 to 20 aged people are 16,20to 25 aged are 25, 25 to 30aged are 7 and above 30aged 2.

GENDER0

5

10

15

20

25

30

35

40

MALEFEMALE

Interpretation:This surveyed limited between 50 people. In between male parsons are38 and female persons are 12.

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1-5 STANDARD 6-10 STANDARD ABOVE 10 CLASS0

2

4

6

8

10

12

14

16

18

EDUCATION LEVEL

EDUCATION LEVEL

Interpretation:It is analyzed that out of 50 people ,their education level .In between class 1to 5 standard 10 people,6 to 10 standard 18 people, above 10 standard 22.

INCOME LEVEL0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Rs.10000 & AboveRs.5000-10000RS.1-5000

Interpretation:It is analyzed that out of 50 people,25 people have income level below 5000 thousand, 18 have 5000 to 10000 thousand , 7people have above 100000.

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HOLDING ANY BANK A/C ?

YESNONOT ANS.

Interpretation:It is analyzed that out of 50 people ,who is holding the BANK A/C. Now hare found 45people is holding a bank A/C, 5people is not holding any bank A/C .

HAVE AN ATM CARD?0

5

10

15

20

25

30

35

40

YESNONO ANS.

Interpretation:It is analyzed that out of 50 people ,who is holding the ATM card .Now hare found 37 people is holding ATM , 8 people is not holding ATM and 5 people have no bank A/C .

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HOW LONG ATM HOLD

BELOW 5 YEARS5YEARS TO 10ABOVE 10

Interpretation:It is analyzed that out of 50 people 355 customer hold the ATM card below 5 years,8 people holds between 5 to 10 years and I am founded 2 people who hold the ATM above the 10 years.

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CHAPTER 4

CONCLUSIONS Nowadays ATMs are playing a vital role in banking sector, for easy accessing the account from

anywhere in the world. Electronic Banking also known as Internet Banking is the latest in

the series of technological wonders of the recent past. ATMs, Tele-Banking, Internet

Banking, Credit Cards and Debit Cards have emerged as effective delivery channels for

traditional banking products. Banks know that the Internet opens up new horizons for them

and moves them from local to global frontiers. This systems that enable bank customers to

get access to their accounts and general information on bank products and services

through the use of bank's website, without the intervention or inconvenience of sending

letters, faxes, original signatures and telephone confirmations. It is the types of services

through which bank customers can request information and carry out most retail banking

services such as balance reporting, interaccount transfers, bill-payment, etc., via

telecommunication network without leaving their home/organization. It provides

universal connection from any location worldwide and is universally accessible from

any internet linked computer. Information technology developments in the banking sector

have speed up communication and transactions for clients. It is vital to extend this banking

feature to clients for maximizing the advantages for both clients and service providers.

Internet is the cheapest delivery channel for banking products as it allows the entity to reduce

their branch networks and downsize the number of service staff. The navigability of the

Website is a very important part of IB because it can become one of the biggest

competitive advantages of a financial entity. Bankers consider ‘minimizes inconvenience',

'minimizes cost of transactions' and 'time saving' to be important benefits and 'chances of

government access',

'chances of fraud' and 'lack of Information security' to be vital risks associated with electronic

banking. Due to increase in technology usage the banking sector's performance increases day

by day. IB is becoming the indispensable part of modern day banking services.

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