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development, speed of transaction processing and reduction in transaction costs. in india the major issue about new technology related delivery channels is their impact on the processing of information, which lies at the core of banking business. inspite of their advantages, reliance on technology based delivery channels often exacerbates traditional risks : operational risk ( since it requires changes in procedures ), reputational risk ( if the bank fails to deliver secure, accurate and timely service ) and legal risk ( uncertainty about which legislation applies to e - banking transactions ), besides emergence of other risks ( business and credit risks ). atms still remain the most successful delivery channel followed by telephone banking and internet banking. with about 9000 off - site and on - site atms installed, banks are effectively reaching out to a large customer base at a substantially lower cost. typically, it costs close to rs. 50 per transaction if conducted in a branch and the same if done through atm costs about rs. 15. in order to reduce the cost of transaction banks have started out - sourcing and sharing of atm services and this trend will gather momentum in near future. as this delivery channel gains mass acceptability and is user friendly, the bank can use it to cross - sell its as well as others ’ products. for example, banks have already started dispensing railway tickets, movie tickets through their atms. in future a bank ’ s atm would function like a kiosk delivering more of non - cash transactions, thereby simultaneously reducing the fixed and operating cost of atm. internet banking - an emerging delivery channel - offers significant cost advantage to banks. a net - based transaction costs the bank only around rs. 4 and costs per transaction are even lower than those of an atm, mainly due to savings on prohibitive real estate costs. internet banking has failed to take off due to a combination of psychological, legal, technological and socio - economic factors. lack of critical mass of early adopters, lack of a strong trust environment, slowness in adoption of the internet, low penetration of pcs and access to internet are some of the impediments in the adoption of internet banking in india. with drastic fall in cell phone tariff and emergence of seamless connectivity between fixed and mobile lines, mobile banking is set to emerge as one of the cost - effective delivery channels in near future. toll - free - numbers would also gain popularity as an important delivery channel. although banks abroad are using call centre as a delivery channel for some time