Public Sector Banks (PSBs) are a major type of bank in India, where a majority of shareholders (i.e. more than 50 per cent) is held by a government. All the shares of these banks are listed on the stock exchanges as per their guidelines. But now, fortunately, Public Sector banks have started to take security measures seriously and trying to safeguard their customers, especially those using debit cards to withdraw cash from ATMs. Banks these days are initiating some proactive, preventive and customer’s friendly measures to protect the interest of customers, so as to prevent loss of their valuable money.
You must be glad to know that the new facilities introduced by public sector banks like Canara Bank, SBI, help users to protect from fraud. As per technology up-gradation, banking has evolved and continues to innovate.
A Forgery Can Cost Your Lifetime Saving:
During the years 2018-19, 179 ATM fraud cases were recorded in New Delhi. Recently, cloning of cards has been on the rise with foreign nationals seen to be involved in a large number of cases. Across the country, the number of frauds that were reported rose to 980 in 2018-19, compared to 911 in the previous year.
Earlier this year a video surfaced on social media, initially shared by Twitter user @rose_k01. on an attempted fraud by collecting data of the sensitive user by installing a skimming device. The incident happened in Delhi ATM. Luckily, immediate action was taken and the device was found and removed expeditiously. No data was captured, that let any fraud happen.
“We, at Canara Bank take strict measures to safeguard our customers. We immediately located and removed the skimmer from Gowtami Nagar, Delhi ATM,” the public sector bank cleared safeguarding its customers’ valuable and confidential data.
However, Canara Bank is not the only bank taking measures to safeguard its customers, other banks are working on the issue as well. They are coming up with new technology and ideas to safeguard their customers against risks while using debit cards for cash withdrawal at ATMs.
Other Pro-Active Preventions:
Canara Bank Launches OTP for Cash withdrawal from ATM above Rs 10K
Canara Bank plans to launch India’s first OTP facility for cash withdrawals. The OTP facility will on cash withdrawals of or more than Rs 10,000 a day from ATM machines. Users might necessarily carry your mobile phone whenever they visit an ATM for cash withdrawal more than 10,000 because, as the mentioned bank will share OTP (One Time Password) for every transaction more than 10,000.
RBI Asks Banks to Ethe extend POS Facility
A payment terminal, also known as a Point of Sale (POS) terminal, credit card terminal, EFTPOS terminal (or by the older term as PDQ terminal which stands for Process Data Quickly is a device which interfaces with payment cards to make electronic funds transfers. The terminal typically consists of a secure keypad (called a PINpad) for entering a PIN, a screen, a means of capturing information from payment cards and a network connection to access the payment network for authorization.
The Bank extends the facility to withdraw cash from PoS is another way to protect from fraud. RBI gives instruction to the bank for this facility that cardholder will withdraw cash from PoS having a limit up to 100 0per days in Tier-I and II centres and Rs 2,000 per day in Tier-III to VI centres.
In case, charges are applicable during cash withdrawal through a debit card from the PoS device should not more than 1 per cent of the amount withdrawn. And, every bank will be submitting data of cash withdrawal from PoS device to Department of Payment and Settlement Systems, Mumbai, on a quarterly basis within 15 days of the end of each quarter.
No Future of Debit Cards?
The SBI thought digital payment forward and SBI user will soon use YONO app to withdraw cash out of an ATM machine. SBI wants that this facility can be used by the maximum number of users. Are you worried that if debit cards are gone then how will you withdraw cash in the future? Do not worry, here’s the answer, SBI introduced its YONO service for its customers.YONO stands for ‘You-Only-Need-One’ and is SBI’s online service for digital banking and services. With YONO, SBI customers can basically access all of their card services digitally.
You May Not Be Able to Use ATM Twice a Day
The banks have come up with yet another way to prevent frauds, it is to use ATM only twice a day if the bank has their way. In other words, we can say that banks want its customers to be allowed just one transaction per specified period between six to 12 hours or we can say that ATM put 6-12 hours gap between two transactions per day. The Delhi State-Level Bankers’ Committee (SLBC) has suggested this service. The idea behind this is to use your mobile phone to withdraw cash to and hence not depend on ATM cards always.
By all means, you might be worrying that the debit card won’t exist anymore in the future? For now, SBI says that within a period of five years, it expects its YONO service to catch up and that the debit card will only be a ‘stand-by’ option. State Bank of India has reduced ATM cash withdrawal limit to Rs 20,000 to reduce ATM frauds. Canara Bank meanwhile is sending OTPs for any withdrawal above Rs 10,000. We would like to say that, these services may sound inconvenient, but trust us, all these are going to help their customers to prevent fraud.
