RURAL CUSTOMERS USAGE ON SBI ATM SERVICES

Transcription

1 RURAL CUSTOMERS USAGE ON SBI ATM SERVICES * Mrs. A. Karthikeyani & ** 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 onsite and 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 wa s carried out to know the extent of usage on SBI ATM services among rural card holders in Udumalpet Taluk. The study revealed that per cent of respondents have low level of usage, 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. Age, 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 gro wth in recent y ears. As at the end of March 2016, the number of ATMs deployed in India was onsite and offsite ATMs. According to RBI card statistics estimates the total cash movement through ATMs across India Rs millions in financial year 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 we ll-kind delivery channels because it permits customers to try to anyplace, anytime by using banking system. 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, bran ches, customers and employees. The SBI group consists of 5 Associates banks and a number of subsidiaries formed for niche business. SBI alone have branche s, out of which branches are located in rural and semi -urban areas [SBI Annual Reports 201 5]. As on March 2016, it has onsite and 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 19

2 services, Annual service charges, Printing Pass Book and Card Validity Period. SBI s ATM network transacts per cent of the country s total ATM transactions. On an average, over lakhs per day are routed through its ATM network. Table 1: Growth of SBI ATMs and its Transactions Year Online ATMs Offline Total Amount of Transactions through Debit Cards(Rs. Millions) 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 (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 withdraw al 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 kno wn 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 b y SBI. 2. To determine the variables influencing their level o f usage 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. 20

3 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 and the standard deviation is The score Up to is categorized as lo w; the score from to is categorized as medium and the score above is categorized as high. TABLE 2: Rural SBI ATM Card Holders Level of Usage Level of Usage Number of Respondents Percentage of Respondents Low Medium Source: Primary Data High Total The Table 2 shows that 8 (10.67 per cent) respondents have lo w 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 follo wing 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 Respondents Percentage 1 Cash Deposit Cash Withdrawl Change Password(Pin) Balance Enquiry Mini Statement Fund Transfer Utility Bill Payments Payment for Purchase of Goods Recharging Mobile Phones Five Free Transactions Printing Pass Book Period of Validity SMS Alert Source: Primary Data Table 3 reveals that all the respondents are using ATM for the purpose of Cash Withdrawl follo wed 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 lo w level of access. 21

4 Variables Influencing Card holders Usage The follo wing hypothesis f ramed to find the Variables Associated with the Usage on ATM Services Offered by SBI 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 Variables Gender Level of Usage Low Medium High n=8 % n=55 % n= 12 % Male Female Age Below Above Marital Status Married Unmarried Type of Family Joint Nuclear Members in the Family Below Above Educational Qualifications Up to HSC Diploma Graduate & Above Professional Total n=75 df 2 Value * ** * * * * Occupation Student Agriculture Business Employee Professional Home Maker Retired

5 Monthly Income Below Above Family Income Below Above Level of Awareness Low Medium High 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 inco me and family income and the level of usage. SUGGESTIONS Based on the study, the follo wing suggestions are made to enhance the usage level of ATM services: Awareness on the utilization of ATM services can be initiated among wo men 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 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 utili zation 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 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 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 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

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