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Financing -- Loans/Foreign Currency Exchange Feature within Remote Banking.


Foreign Exchange
Foreign Exchange  

Automated Teller Machine
Automated Teller Machi  
Dear Finance Guy

Can Foreign Currency Exchange Program Feature be integrated within Automated Teller Machine ?. This features will be available only with Bank ATMS who are offering foreign currency exchange facility. Customer should have valid banking account with the Bank.

For this case to work, foreign currency notes to be deposited within the ATM System along with the Local currency notes of the country.

Example :

Banking Customer wants foreign currency exchange for Rs 20,000 in Euros.

Steps :

1. A menu link "Foreign Currency Exchange" is displayed to the Bank Account Holder once he/she is authenticated by the ATM System.

2. Different Exchange Currency conversions are available to the Customer. Examples : INR/EURO, INR/US Dollar, INR/GBP, INR/Yen etc.

Customer Selects INR/EURO link. System prompts for entering Rupees
to be converted. Customer enters Rs 20,000. After Entering Rs 20,000 the ATM System calculates the Current Exchange Rate by connecting to the Bank and displays 278 Euros. System also verifies
whether Balance amount Rs 20,000 is available. System prompts for entering Rs 20,000 in a deposit envelope. Customer deposits Rs 20000 within the ATM Machine. ATM System gives the Bank customer
278 Euros from withdrawal slot. The Balance amount, Successful Transaction Hard copy is displayed to the Bank Customer.

If this feature is integrated within the ATM, Can it have Financial security concerns for the Bank account holders as well as Banks ?

Note :

INR = Indian Rupees.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

I would need more information to give you a more detailed reply.

However, these are my thoughts:

I would think that the ATM would necessarily need to be a single currency issuer,
that is you would not be able to deposit or retrieve more that a single countries currency.

Next, it would seem that a credit card could be used to both pay for (let's say Euros# the Euros to be purchased, while the charge for those Euros is debited to a credit card, perhaps
in a Rupee equivalent #e.g. paying for Euros to be picked up at the ATM purchased in Rupees on the acquirers' card.

As servicers of ATM's find that the business of servicing these machines is difficult and expensive, not only from a maintenance and refill perspective, but also from a security perspective, I am not sure that this sit he best model to pursue.

But, good luck to you.  

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