History of ATMs
1939 -
ORIGIN OF ATMs
Bank
automation started as early as 1939 with the invention of the ATM by Luther
George Simjian. He came up with the idea of creating a hole-in-the-wall machine
that would allow customers to make financial transactions. The idea met
skepticism but he persuaded what is now Citicorp to give it a trial. After six
months, the bank reported that there was little demand.
1960 -
ATM PREDECESSOR INSTALLED
New York's First National City Bank (now
CitiBank) installs a Bankograph in several branch lobbies. The idea is for
customers to pay utility bills and get receipts without having to see a teller
1967 -
FIRST BANKING CASH DISPENSER
On
June 27 1967 De La Rue wins the race to unveil the first machine, drawing
crowds to the unveiling.The concept is developed by John Shepherd- Barron. He
came up with a self-service machine which dispenses paper currency on a 24/7
basis. The first of this type of machines will be installed outside a north London branch of Barclays
Bank in 1967.
1987- INDIA'S FIRST
ATM
HSBC
has installed the first ATM in India
during 1987.
Cheque Truncation System
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CTS at a
glance
Reserve Bank of India has
initiated a new retail payment system with the introduction of an Image based
Cheque Truncation System [CTS] in the Country. This initiative is aimed at
improving the efficiency in the payment systems by eliminating the existing
process of realization of cheques which have to be physically presented to
the Drawee Bank.
This means that instead
of the physical cheques, the images of the cheques will be presented in the
clearing houses. As this is going to be purely an electronic payment, RBI is
aiming to consolidate all the clearing houses in future. Also, the
geographical barrier will be completely eliminated in this process.
What is a
Cheque Truncation System?
Truncation means
retaining the movement of physical Cheque from one place to another for the
purpose of clearing / collections. Instead, only the images of the cheques
will be presented in the clearing houses for clearing settlement.
Truncation
Point
The location at which
the physical cheques are retained and the images are used there after in the
clearing system is called a Truncation Point and the process is defined as
Cheque Truncation System.
The introduction of the
CTS will change the roles and the responsibilities of the banks in the
clearing process and may lead to introduction of certain risks that will have
to be mitigated. So far, the Drawee Bank branch is responsible for ensuring
the genunity of the Cheque presented in the clearing. With the introduction
of Cheque Truncation System, the presenting Bank will be responsible for the
same.
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