FRAUDS AT BANK ATMs

15-04-2019

Please refer following link in connection with cash withdrawal at ATM without debit card:

https://economictimes.indiatimes.com/wealth/save/heres-how-you-can-withdraw-cash-without-using-credit-or-debit-card-at-these-3-banks-atms/articleshow/68811216.cms?from=mdr


This was suggested to RBI on 19-04-2015 by me and after long follow up RBI forwarded to NPCI and after my chasing RBI/NPCI to implement or show reasons why it cannot be implemented, it has been NOW implemented for three banks [may be on trial and to gain experience before all banks are made to follow], with minor changes to my suggestion. This system will stop ATM frauds by cloning of card and skimming PIN number. A OTP received on phone will ensure full safety of customers money.

I reproduce first letter dated 19-04-2015 addressed to RBI:

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.

Yours faithfully,

J P Shah.