Implementation of ATMS at SBI

By deploying Symstream II(tm)- wireless modem for GSM (Global System for Mobile communications) connectivity, banks in India will now be able to deploy ATMs to the most remote sites in India, thereby enabling them to offer banking services to the unbanked rural population. The solution uses voice channel, unlike traditional GPRS (General Packet Radio Service) connectivity using data, making it more reliable and fast. Banks will be able to increase their ATM penetration with reduced overhead costs, faster deployments, better security, improved efficiency and functionality compared to other legacy technology being used.

Customers opting for biometric authentication can visit the nearby kiosk or ATMs or bank, where his fingerprint data would be scanned into a special PC (Personal Computer) with a fingerprint scanner, and the scanned fingerprint is then stored in an encrypted form in a central server. When a customer inserts (or swipes) his card in a biometric-enabled ATM, he is prompted to set his finger in the fingerprint scanner. The transaction along with customer’s biometric information is passed on to the switch. The switch verifies the fingerprint with the server, and if successful, requests the banking application to authorise the transaction. Based on the result, the switch instructs the ATM to complete the transaction.

ATMs in India

Hongkong and Shanghai Banking Corporation installed the first ATM in India in 1987 at Kolkata. Indian Bank was the first public sector bank to install an ATM in India. These were all standalone ATMs. In 1997, the Indian Banks Association promoted a network of ATMs in Mumbai called ‘SWADHAN’ providing facility of cash withdrawal at ATMs of any of the member banks. This network provided only offline services and consequently, did not become popular. On the other hand, the services provided by the networked ATMs of foreign banks were immensely popular amongst their customers.

The advent of new generation private sector banks in India gave a fillip to the creation of ATM networks as these banks relied more on ATMs as the delivery channel instead of branch banking, which was the forte of the traditional Indian Banks – both in the public sector and the private sector. In response to the aggressive use of technology by the new generation banks and to meet the expectations of customers, the traditional Indian banks also resorted to the creation of technology driven delivery channels, including the ATM channel.

ATMs in State Bank

The first ATM of State Bank of India – a standalone ATM was installed in the year 1993, at Jamshedpur. The installation of ATMs in State Bank was at a slow pace up to the year 2000 due to the restrictions placed on the number of ATMs as per the agreements with the Unions.