Safety of ATM Transactions-DIGITAL INDIA

Date: 30-12-2016                 REMINDER-IV                                              by email

To,

Chief General Manager
Consumer Education and Protection Department
Reserve Bank of India
Mumbai-400 001

Email: helpdoc@rbi.org.in

Respected Sir,

Subject: Suggestion for Safety of ATM Transactions-DIGITAL INDIA

This bears reference to Oct 2016 massive cyber attack/data breach in banking system mainly ATMs of premier banks. Huge amount has been defrauded at ATMs. I had made suggestion as per my attached letter dated 19-04-2015 [reminded on 01-03-2016, 10-07-2016 and 20-10-16]. I hope suggestion, if it would have been implemented by RBI/NPCI, could have saved crores of rupees of customers using ATMs. Now most of premier banks will force customers to approach consumer fora and wait for years to get back amount defrauded if they are lucky enough. I am sure RBI and NPCI are still studying my suggestion and hope it will be implemented in near future for safety of ATM transactions. This may kindly be treated as FOURTH reminder in the interest of public.

I am sure with Digital India initiative of Hon’ble Prime Minister, large number of citizens [including illiterate/semiliterate customers and villagers] would be using ATMs. Present security is open to large number of frauds and banks will make such customers run from pillars to posts for being lucky to get their money back, including compensation mandated by RBI. A small change in system will save common citizens from being defrauded and mostly such customers will stand to lose as Govt system in our country is not yet customer-centric at ground level at least for common Indians. Bank officers are enjoying predicament of defrauded customers. I have been helping such customers and my experience is not at all happy when dealing with Banks.

I may add that banks have such OTP system for online payments through debit/credit cards. In addition recently yahoo mail has also implemented it for password. Gmail is also providing such security by sending OTP if one desires such security.  My suggestion may be made optional for ATM withdrawals.

Please consider my suggestion at the earliest before large number of citizens loses their hard earned money.

I wish you happy and prosperous 2017.

Yours faithfully,

J P Shah

Copies to: 

1. National Payments Corporation of India

C-9,8th Floor  RBI Premises,

Bandra-Kurla Complex,

Bandra (East), Mumbai-400 051

Email: seethalakshmi.v@npci.org.in

.

2. Secretary

Department of Financial Service,

Ministry of Fiance,

3rd Floor, Jeevan Deep Building,

Sansad Marg, New Delhi-110001

Email: secy-fs@nic.in 

 – I hope you would be in a position to sensitize RBI and NPCI in this matter