Rural Customers Usage on Sbi Atm Services

RURAL CUSTOMERS USAGE ON SBI ATM SERVICES * Mrs. A. Karthikeyani and ** Dr.R.Gopi * Ph.D. (Full Time) Scholar, Government Arts College, Udumalpet. ** Assistant Professor of Commerce, Government Arts College, Udumalpet. ABSTRACT Indian Automated Teller Machine (ATM) industry has seen explosive growth in recent times. State Bank of India is the largest commercial bank in terms of assets, deposits, profits, branches, customers and employees. It has 20403 onsite and 29321 offsite ATM centres, one of the largest ATM networks in the world. Today, almost all the customers are accepting the ATM, as a useful and modern tool for dispensing cash. The other services such as deposits, fund transfers, utility payments, order cheque book and recharging pre-paid cards are not so commonly used. In this regard, a study was carried out to know the extent of usage on SBI ATM services among rural card holders in Udumalpet Taluk. The study revealed that 10.67 per cent of respondents have low level of usage, 73.33 per cent of respondents have medium level of usage and 16 per cent of respondents have high level of usage on the ATM services provided by SBI. A ge, Gender, Members in the Family, Educational Qualification and Level of Awareness are highly significant on level of usage. Keywords: Automated Teller Machine, Rural Customers and Usage

INTRODUCTION Automated Teller Machine (ATM) has become a universal and suitable part of modern life. Indian Automated Teller Machine (ATM) industry has seen explosive growth in recent years. As at the end of March 2016, the number of ATMs deployed in India was 101950 onsite and 97149 offsite ATMs. According to RBI card statistics estimates the total cash movement through ATMs across India Rs. 8134691.56 millions in financial year 2015-2016. ATM is such kind of innovation which will automatically settle for deposits, issue with drawls, transfer funds between accounts and collect cheque. ATM is that the most well-kind delivery channels because it permits customers to try to anyplace, anytime by using banking system.

1 STATE BANK OF INDIA- AN OVERVIEW State Bank of India (SBI), with a history of over 200 years, is one of the oldest financial institutions in India and it is the largest commercial bank in terms of assets, deposits, profits, branches, customers and employees. The SBI group consists of 5 Associates banks and a number of subsidiaries formed for niche business. SBI alone have 16333 branches, out of which 10754 branches are located in rural and semi-urban areas [SBI Annual Reports 2015]. As on March 2016, it has 20403 onsite and 29321 offsite ATM centres and it is one of the largest ATM networks in the world (RBI`s ATM & Card Statistics, 2016). Its offering variety of services like: Cash deposit, Cash Withdrawal, Fast Cash, Pin Change, Balance Enquiry, Mini statement, Card to Card Transfer, Credit Card Payment (Visa) , SBI Life Premium Payment, Mobile Top-up, Cheque Book Request Order, Trust Donation, Bill payment, Mobile Banking Registration Register/Deregister, Inter-Mobile Payment System, Short Message services, Annual service charges, Printing Pass Book and Card Validity Period. SBI’s ATM network transacts 49.65 per cent of the country’s total ATM transactions. On an average, over 99.96 lakhs per day are routed through its ATM network.

Table 1: Growth of SBI ATMs and its Transactions

ATMs Amount of Transactions Year Total through Debit Cards(Rs. Online Offline Millions) 2011-2012 12198 9943 22141 4901277.1 2012-2013 15037 12138 27175 5809580.8 2013-2014 23516 20913 44429 6826092.76 2014-2015 17553 28329 45882 7202720.27 2015-2016 20403 29321 49724 8134691.56 Source: RBI’s Bank wise ATM/POS/CARD statistics REVIEW OF LITERATURE

Susheel Kumar (2014), in his research paper entitled, “Analysis of ATM issues through the students response: A survey of Himachal Pradesh

2 (Hamirpur)” reveals that there is an association between age and preference to use the ATM services. The students prefer ATM with time and cost utility which provides efficient services. G.P. Gunston (2013), in his doctoral research titled, “A Study on Customer Satisfaction on Modern Banking (With Special Reference to ATM in Kanyakumari District of Tamil Nadu State) ”, found that age, occupation, income, type of account held, duration of account holding and number of transaction have direct association with ATM usage. Edward Johnson Mwaikali (2014), in his article entitled, “ Assessment of Challenges Facing Customers in Automated Teller Machines in the Banking Industry in Tanzania: A Case of Some Selected Banks in Tanzania”, found that majority of respondents representing use ATM because of its cost effectiveness. All the respondents are using ATM for the purpose of withdrawal of cash. STATEMENT OF THE PROBLEM

The quality, range and price of e-services decide a bank’s competitive position in the industry (Uppal and Rosy Chawla 2009). Almost all the customers are accepting the ATM, as a useful and modern tool for dispensing cash (Ramola Premlatha and Ajay Kumar Sharma, 2012). The other services such as deposits, fund transfers, utility payments, order cheque book and recharging pre-paid cards are not so commonly used ( Mohammed & Rameshwar and Barun Kumar Jha et.al 2014) . A study shows that the majority of the male customers are using debit card when comparing to female customers. They use debit card for withdrawl of cash followed by shopping and balance enquiry. Fund transfer has low level of usage (Giridhar and Krupa 2012). In this regard, a study to known the level of usage of SBI ATM card holders rural area is felt relevant. OBJECTIVES OF THE STUDY

1. To assess the rural ATM card holders usage on the services offered by SBI.

2. To determine the variables influencing their level of usage

3 METHODOLOGY

The study is based on primary and secondary data. Interview schedule is used to collect the data from Rural ATM Card holders of Udumalpet Taluk. State Bank of India has five rural branches in Udumalpet. Fifteen ATM cardholders from each branch were selected to express their views by adopting convenience sampling technique. There by the sample size is 75. Reports, Articles from journals, magazines and articles from web form the secondary source. Data collected was analyzed using Simple Percentage and Chi-Square Test. LIMITATIONS OF THE STUDY

SBI Rural Policyholders of Udumalpet taluk alone have been given a chance to express their opinion. The response may be also biased in nature. So, caution should be taken while generalizing the result. FINDINGS AND DISCUSSIONS Level of Usage

Usage Index is computed to ascertain the level of usage of the respondents on the ATM services provided by the SBI. The banker provides various facilities to facilitate the customers which are categorized as 13 in number. The response is rated on a two point scale namely zero and one. Thus, the maximum score will be 13. The mean awareness is 58.05 and the standard deviation is 20.79. The score Up to 37.26 is categorized as low; the score from 37.27 to 78.83 is categorized as medium and the score above 78.84 is categorized as high. TABLE 2: Rural SBI ATM Card Holders Level of Usage Percentage of Level of Usage Number of Respondents Respondents Low 8 10.67 Medium 55 73.33 High 12 16.00 Total 75 100.00 Source: Primary Data

4 The Table 2 shows that 8 (10.67 per cent) respondents have low level of usage, 55 (73.33 per cent) respondents have medium level of usage and 12 (16 per cent) respondents have high level of usage on the ATM services provided by SBI.

The following Table Portrays the level of usage on the various services offered to SBI ATM Card Holders.

TABLE 3: ATM Card Holders Usage on Various ATM Services

Extent of Usage S.No ATM Cum Debit Card Services No. of Percentage Respondents 1 Cash Deposit 10 13.33 2 Cash Withdrawl 75 100.00 3 Change Password(Pin) 53 70.67 4 Balance Enquiry 66 88.00 5 Mini Statement 63 84.00 6 Fund Transfer 26 34.67 7 Utility Bill Payments 19 25.33 8 Payment for Purchase of Goods 37 49.33 9 Recharging Mobile Phones 23 30.67 10 Five Free Transactions 51 68.00 11 Printing Pass Book 13 17.33 12 Period of Validity 57 76.00 13 SMS Alert 73 97.33 Source: Primary Data Table 3 reveals that all the respondents are using ATM for the purpose of Cash Withdrawl followed by SMS Alert (97.33 per cent), Balance Enquiry (88.00 per cent) and Mini Statement (84 per cent). Cash Deposit and Printing Pass book facilities have low level of access.

Variables Influencing Card holders Usage The following hypothesis framed to find the Variables Associated with the Usage on ATM Services Offered by SBI

5 Ho: There is no significant association between the select variables and level of usage.

TABLE 4: Variables Associated with the Usage on ATM Services Offered

Level of Usage Total 2 Variables df Low Medium High n=75 Value n=8 % n=55 % n= 12 % Gender

Male 3 31 10 44 6.82 70.45 22.73 4.609 2 Female 5 16.13 24 77.42 2 6.45 31 * Age

Below 25 0 0.00 15 88.24 2 11.76 17 16.450 26-50 2 5.26 26 68.42 10 26.32 38 4 ** Above 51 6 30.00 14 70.00 0 0.00 20 Marital Status

Married 7 12.96 38 70.37 9 16.67 54 2 1.238 Unmarried 1 4.76 17 80.95 3 14.29 21 Type of Family

Joint 2 6.06 25 75.76 6 18.18 33 2 1.395 Nuclear 6 14.29 30 71.43 6 14.29 42 Members in the Family

Below 2 4 33.33 8 66.67 0 0.00 12 10.695 3-5 4 7.55 38 71.70 11 20.75 53 4 ** Above 6 0 0.00 9 90.00 1 10.00 10 Educational Qualifications Up to HSC 1 7.14 13 92.86 0 0.00 14 Diploma 7 35.00 9 45.00 4 20.00 20 21.641 6 Graduate & Above 0 0.00 28 80.00 7 20.00 35 ** Professional 0 0.00 5 83.33 1 16.67 6 Occupation

Student 0 0.00 7 87.50 1 12.50 8 12 Agriculture 2 15.38 9 69.23 2 15.38 13 16.397

6 Business 1 10.00 6 60.00 3 30.00 10 Employee 0 0.00 18 81.82 4 18.18 22 Professional 0 0.00 4 66.67 2 33.33 6 Home Maker 2 28.57 5 71.43 0 0.00 7 Retired 3 33.33 6 66.67 0 0.00 9 Monthly Income

Below 5000 4 18.18 17 77.27 1 4.55 22 5001-29999 4 9.30 29 67.44 10 23.26 43 4 6.379 Above 30000 0 0.00 9 90.00 1 10.00 10 Family Income Below 10000 3 25.00 8 66.67 1 8.33 12 10001-59999 4 8.00 36 72.00 10 20.00 50 4 4.564 Above 60000 1 7.69 11 84.62 1 7.69 13 Level of Awareness Low 4 30.77 8 61.54 0 7.69 12 9.803 Medium 4 7.27 41 74.55 10 18.18 55 4 ** High 0 0.00 6 85.71 1 14.29 7 Source: Primary Data * Significant at ten per cent level ** Significant at five per cent level Table 4 reveals that among the ten variables selected, five variables are found to be significant. Of them age, members in the family, educational qualification and level of awareness are significant at five percent level and gender is significant at ten percent level. There is no significant association between other variables namely marital status, type of family, occupation, monthly income and family income and the level of usage.

SUGGESTIONS

Based on the study, the following suggestions are made to enhance the usage level of ATM services:

 Awareness on the utilization of ATM services can be initiated among women and senior citizen through NGO’s and local body members.

 More off site ATMs Centre’s may be installed in rural areas,

 Interactive Voice Response ATMs can be launched in rural areas

7  A special campaign to enhance the level of usage may be promoted through celebrities.

CONCLUSION Today, Automated Teller Machine (ATM) has become the buzzword of modern convention world. SBI is in forefront by providing new innovative e- services at par with global standards. The present study revealed that customers have a medium level of usage on the ATM services. More initiatives have to be taken by the banker to enhance the better utilization of e-banking services through innovative strategies.

REFERENCES 1. Barun Kumar Jha, Shilpa Sureka and Shitika (2014), “Customer’s Satisfaction for ATM Services in Bihar, India”, International Journal of Interdisciplinary and Multidisciplinary Studies, vol. 1(4), pp. 42-49.

2. Edward Johnson Mwaikali, “Assessment of Challenges Facing Customers in Automated Teller Machines in the Banking Industry in Tanzania: A Case of Some Selected Banks in Tanzania”, International Journal of Research in Business and Technology, Vol.pp. 480-488.

3. Giridhar K. V. and Krupa V. D.(2013), in their research article titled, “A study on "Customer Satisfaction towards Services Provided through ATMS in Malnad Rural Regions of Shimoga Dist. with Special Reference to SBM", International Journal of Scientific Research, Vol.2(9), pp.41-45.

4. J. Ramola Premlatha and Ajay Kumar Sharma (2012), “A Study of the Factors Affecting Customer Satisfaction for ATM Services in Vellore District”, International Journal of Marketing, Financial Services & Management Research, Vol. 1(3), pp.114-121.

5. Dr. Satinder Singh Randhawa (2013), ATM Services And Customer’s Satisfaction Level: A Case Study Of Public And Private Sector Banks In Hamirpur District (Hp), International Journal of Research in Commerce & Management, Vol. 4(11), pp.51-54

6. Susheel Kumar (2014), “Analysis of ATM issues through the students response: A survey of Himachal Pradesh (Hamirpur)”, Asian Journal of Multidisciplinary Studies, Vol.2 (5), pp.28-38.

7. Uppal R K and Rosy Chawla (2009), “E-delivery channels” the ICFAI Journal of Management Research, Vol. 8(7), pp. 8-9.

8 8. G.P. Gunston (2013), “A Study on Customer Satisfaction on Modern Banking (With Special Reference to ATM in Kanyakumari District of Tamil Nadu State)”, Bharathidasan University,

Tiruchirappalli.

9. www.rbi.org.in/statistics/database/bankwiseATM/POS/CARDstatistics

10. www.sbi.org.in/annualreports