Thursday, January 6, 2011

Transactions through ATM to go more secure

RBI is now planning to make the transactions made through the ATM more secure. As the RBI received many complains regarding the misuse of their ATM cards, the bank has planned to bring amendments to the process of ATM transactions.

ATM have gained a lot of popularity and demand in the recent years, because it is very convenient, easy to use and easily available source . As the use of ATM have increased, there has also been a rise in the frauds regarding the ATM transactions.

Earlier a customer could conduct many transactions by punching the PIN only once. There were cases when some people forgot to collect their ATM card during the transaction in the machine itself and some unauthorized person made transaction from the account of the person.

To check such practices RBI has asked the banks to make amendments in the process of the transactions trough the ATM and allow only one transaction for every entry of PIN. Such a practice would definitely bring decline in the ATM transaction frauds.

Earlier RBI instructed the banks to bring the new changes in existence from January 1 , 2011 but some banks were still not prepared and were in the process of upgrading the system so RBI is yet to decide the new deadline. In the meanwhile the banks are making their customers aware about the developments.

In a circular issued by HDFC Bank to the customer, the bank informed : "As per RBI guidelines, you will need to re-enter your ATM PIN for every additional ATM transaction in a single session, with effect from 1st January, 2011".

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