ATMs used 88% of the time for cash withdrawals

A survey conducted by international consultancy firm IDC on behalf of NCR Corporation on usage pattern of automated teller machines (ATM) suggests that around 88 per cent of cardholders make use of the facility only for cash withdrawal while an individual accesses the machine four times a month on an average.

A cardholder, on an average, uses an ATM for 3.5 times a month for cash withdrawal while he uses the machine for around 2.5 times for balance inquiry.

Users in Kolkata were among the highest users of ATM facility at five times per month compared with other cities like Mumbai where the figure was 3.6. In Delhi also the figure was 3.6. In other metros and cities with population below 40 lakh, ATM usage was also among the highest at 4.5 per month. In cities with population below 10 lakh, the usage was 4.7 times a month.

Majority of users used their machines at locations near their residences. Requisition for demand draft, cheque book facility, payment of utility bills and account transfers are yet to pick up among users. Facilities for cheque and cash deposit through ATMs were also on the lower side.

The study also suggested that 36 per cent of ATM holders were not savvy with the functioning of the machine. As much as 12.6 per cent of individuals surveyed also believed that they needed to maintain high balances in their accounts to be able to use ATMs.

The IDC survey also mentioned that ATMs are increasingly seen as a criterion for opening bank accounts both by the younger as well as older generation.

As much as 44 per cent considered it as important, but people choose to visit the bank for making deposits and ATMs were most commonly used for withdrawal followed by balance inquiry. ATMs are used to a lesser extent for deposits. Usage of ATMs for this purpose are relatively more popular in Mumbai and 10-40 lakh towns.

ATMs used for cheque deposits were more than cash deposits in metros and vice versa in other town classes. Internet banking and phone banking were more popular in Mumbai vis-à-vis other places.

While non-users of ATMs in general appear to be conservative and to some extent are laggards, mostly have accounts in public sector banks cautious about dealings with foreign banks do not use phone banking/net-banking at all.

They also lack awareness about how to operate an ATM machine. They are open to using ATMs but they have some misconceptions about using ATM facility as: modalities and documentation requirements, service charges for using ATMs and minimum balance to be maintained in case of availing of ATM facilities.