Fixed interval between two ATM transactions; more restrictions to prevent frauds
Mumbai: Banks are looking at more restrictions to be put in place to prevent ATM frauds. One of the main suggestion is that a fixed interval between two ATM transactions. This time limit may be from 6 to 12 hours.
Most of the fraudulent activities take place between 12 am and 5 am, as per bank records. Restrictions on transactions during this time period is also under consideration.
Another guideline is introduction of OTP (One Time Password) system during ATM transactions similar to those online transactions. At present Canara Bank has implemented the system of OTP for ATM transactions above Rs 10,000. It is expected to curb illegal transactions.
Banks are also mooting for a central monitoring system. A control room will be opened at the bank headquarters and ATM transactions will be monitored.
Meanwhile, State Bank of India is gearing up to extend the use of YONO Cash app for ATM transactions. With this app, card-less transactions are allowed at ATMs using mobile phones. According to SBI these transactions are double secure as it uses OTP and PIN.
Also, in order to prevent fraudulent activities at night, SBI has banned card to account and card to card transactions from 11 pm to 6 am.