ATMs have been in existing in India since two decades. But they have modernized very little with the change of time. The services provided by an ATM still have a very small range from generating cash, to printing mini statements and accepting customer requests for cheque books.

In order to give these ATMs a facelift, many banks are planning on adding new features to these teller machines so receive an stroke of modernization and in a way banking more simpler.

The new frills to be added to these machines are facility for payment of taxes and bills, buying and selling of financial products like mutual funds and even booking air tickets.

"Next-generation ATMs will be a blend of internet kiosks and cash points. They will get closer to being a self-service branch," says Sanjay Sharma, MD & CEO, IDBI Intech, the technology arm of IDBI Bank.

A belief that the nextgen ATMs will be more interactive with voice, data and video capabilities has been shared by Haragopal M, global head of Finacle, the banking solution from Infosys Technologies. "The machines will be able to suggest solutions and have an interactive dialogue with users. These could also tweet product ideas and post financial advice on your social networking site," he says.

HDFC Bank has begun a pilot study named ‘bank on wheels' in villages near Coimbatore region of Tamil Nadu. PNB is working on a new module which would enable rural people to access money as low as Rs. 10 using ATMs. Yes Bank has would be starting its study on video banking from April this year.

From about 20,000 two years ago, the number of ATMs increased to 45,000 in 2009 and is poised to cross 100,000 by 2013, according to RBR, a London-based retail banking research group.

The number of ATM transactions has increased tremendously in India but in comparison to this rise the value addition and user information available with these is not as per requirements of customers. This is the space seen as an opportunity for growth by many players like Yes Bank.

"Video phone banking at ATMs is going to be the most disruptive change around ATMs. Customers will get product advice or problem resolution using video phones," Yes Bank CIO Umesh Jain says.

"While some ATMs have sales information, it is similar information displayed for all customers - more like carpet-bombing instead of focused shooting." He further quoted.

According to Shalini Mehta, EVP, Kotak Mahindra Bank, ATM facility has changed to more of a channel that fulfills customer needs. Thus new offerings would be adding to benefits of customers. Some of the new offerings will include mobile recharge, bill payments, booking tickets, printing statements, updating pass books as well as transfer of funds within and outside the bank.