Automated Teller Machines Usage in India: Emerging Challenges

Automated Teller Machine (ATM) has become very popular among people all around the world. This is due to its easy to carry, usage as plastic money and any time operational which is not in case of banks. Consumers continue to list the location of ATMs as one of their most important criteria in choosing a financial institution, for that banks are willing to open more ATMs for the purposes of providing greater convenience and attracting more customers. With the help of ATM the user can perform several banking activities. Fast development of banking technology has various advantages and disadvantages to banking activities and transactions are the advent of ATM. As we know the security threats in banking systems are increasing day by day. The account holder will be given the ATM card and private PIN (Personal Identification Number) or password. Crime which is happening in ATMs became a serious issue that affects not only customers but also bank operators. This paper is focussed to analyse the cases of ATM usage and fraud occurrences within some banks in India. This research work identifies the common ATM frauds, security threat and maintenance cost problems. These frauds are perpetuated and then proper security recommendation that should be adhered to by both the banks as financial institutions and the ATM users in order to eliminate or reduceit to the barest minimum.