the most, the customer’s signature or a scan.
• Shared payment network arrangements allow participating banks to issue universal cards
that can be used on the electronic banking services shared by the different banks.
• Electronic banking now involves many different types of transactions.
o Bank Teller Machines;
o Automated Teller Machines;
o Internet Banking;
o Debit Cards;
o Telephone Banking.
Bank Teller Machines
• These are installed at fully automated bank premises.
• Unlike ATMs they require the presence of an employee of the bank to operate.
Automated Teller Machines
• Automated Teller Machines or 24hour Tellers are electronic terminals that allow a
person to bank almost any time.
• There are two types – interior and exterior. Interior are those in banking premises
whereas exterior are in malls/ shopping centres and other locations.
• Automated Teller Machines (ATMs) facilitate the withdrawal of money at times when
banks are not open (outside banking hours) and are primarily used for performing some of
the banking functions such as withdrawal of cash or deposit of cash/cheque etc., by using
an ATM card.
• Each customer is provided with an ATM card with a unique Personal Identification
Number (PIN). Whenever a customer performs a transaction, the person has to key in the
PIN which is validated by the ATM, before the machine permits any transaction. The PIN
has to be kept secret by the customer, to prevent any misuse or fraudulent transactions in
the event of loss of the card.
• Standalone ATMs made their appearance in India, in the early 1990s. These were
mostly installed by foreign banks in their branch premises, as per the then existing policy.
Easing of restrictions on the location of ATMs has led to their being installed at
convenient places such as airports, central business districts, hospitals etc.
• IBA has set up a Shared Payment Network System (SPNS) or SWADHAN network of
ATMs of its member banks in Mumbai. The network went live on February 1, 1997. The
objective behind the