Usage of ATM for banking in urban and rural areas-a study with reference to UT of Dadra and Nagar Haveli

The research paper intends to understand the frequency of usage of Automated Teller Machines (ATM) in urban and rural areas. For the development of financial sector and economy, participation of urban as well as rural residents is necessary in the banking sector. To increase the deposit base of banks and augmentation of credit creation in the economy, tapping of saving potential of rural residents is essential. ATM services has the great capacity to increase the participation of rural residents in banking sector and connecting them to mainstream. The results of the study reveal that one third of rural respondents are not using ATM at all and there is a need to increase the usage of ATM among non-users. It also reveals the need for installation of ATM infrastructure in rural areas.