The transformation in the banking business is bound to be technology driven and ATM is the most active format and can be studied as a litmus test to examine the potential success and acceptance among the popular segment who are the masses availing the banking services. The advantages delivered by way of using ATM have created a new impetus in the spectrum of services through its accuracy and its quality aspects. The banks are expected to designing various possible services of new choices to customers. The customer dissatisfaction had been contributed by factors such as the security, frequent breakdown of machine, and insufficient number of ATM.

This paper tries to examine the motivations and usage reasons of the ATMs with specific reference to Mumbai and adjacent areas.

KEYWORDS: ATM, banking services, cash handling charges, customers, transactions