Suggestion for Safety of ATM Transactions

Date: 19-04-2015                                                by email  and posted on website of RBI

To,

Chief General Manager
Consumer Education and Protection Department
Reserve Bank of India
1st Floor, Amar Building, Sir P.M. Road,

Mumbai-400 001

Email: helpdoc@rbi.org.in

Respected Sir,

Subject: Suggestion for Safety of ATM Transactions

For on line payment by debit/credit cards customers get One Time Password [OTP] on registered mobiles before making payment. I suggest that same system be adopted for ATM cash withdrawals. Customers should send particular SMS message [say “ATM”] from registered mobile to a particular number given by bank. In few minutes customer should get SMS informing him of OTP, which should be valid for 15 minutes. Cash should be dispensed only when OTP is keyed in ATM, in addition to PIN. This will stop ATM frauds by cloning of cards and skimming of PINs.

I handled similar fraud case of my friend and it took one year for SBI to refund the amount, after prolonged correspondence from Branch up to Chairperson, 7 RTI applications and three first appeals. Hence this suggestion.