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Foreign Exchange
Foreign Exchange  
Automated Teller Machine
Automated Teller Machi  
QUESTION: Dear George

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

ANSWER: Hi Prashant,

With technology now a days and Companies like NCR, its very possible.  It just would not be feasible for companies because the demand for these would only be high in tourist locations and airports, but since you mentioned for Bank Customers only (obviously because of KYC and Fraud)this will be a wasted feature.

Companies will only put money in to servicing features in machines that will create a great demand.

Hope that answered your question.

---------- FOLLOW-UP ----------

QUESTION: Dear George

Thank you.

http://en.wikipedia.org/wiki/Foreign_exchange
http://en.wikipedia.org/wiki/Automated_teller_machine
http://www.banknetindia.com/ad_fx.htm
http://en.wikipedia.org/wiki/Sensor


Is this a Complex function to achieve within the ATM System ?

Segregation of Different currencies kept in different drawers and assigned a Number to each Box within the ATM System.

For example :

US DOLLAR : 1
GBP : 2
Euros : 3
Yen : 4
Australian Dollars : 5
Indian Rupees : 6
Singapore Dollars : 7
Yuan : 8

etc

A Sensor / barcode / rfid or any other receiver device assigned to each Currency box.

Once the Banking customer selects for example INR/EUR i.e for EURO Currency, this touch screen transmitted signal send/selected from the ATM Menu should be captured as 3 by the Receiver Box device, the "EUROS" Led Sensor Box should get activated while other boxes will remain in deactivated state.
The user should receive cash only from Box 3 i.e. EUROS. A Lifting mechanism for each cash withdrawal drawer box to be designed for implementing the path to ATM Cash Withdrawal Outlet Door.

Mixing of all different countries currency notes within a single cash drawer box and then segregating the currency notes may be a complex function to achieve.

Technically (Both Software and Hardware), it can be implemented in ATMS.

Also this ATMS would be most useful installed in airport locations for foreign travelers apart from shopping malls, departmental stores, restaurants etc ?

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

Answer
Like I said all of these functions could be done, all you need is to be able to program the cassettes in the drawers for each separate category and of course it has to be connected to online for current up to the second conversion rates also program for a fee charge on top of the exchange.

The servicing contract that this machine would inquire would be very very expensive, due to the high functionality of the machine.

You are also opening yourself up to serious risk, if the machine will be in public place and you will depend it on solely the ATM to distinguish fake vs real currency.  

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George

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Anything pertaining to Commercial or Retail Banking. Including, Interest rates, Lending, as well as Prime Rate questions. Also can help with online banking questions including all regulations.

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Retail and Commercial banking since 2002. Currently employed as an Assistant Vice President at a Commercial Bank.

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