The top banking authority in India has issued a new regulation designed to further protect cardholders from fraudulent transactions made at ATMs.
In a Dec. 5 notification, the Reserve Bank of India ordered banks in the country to require cardholders to enter a PIN for each transaction they conduct at an ATM. Such transactions would include cash withdrawals, cash and check deposits, funds transfers, bill payments, and balance inquiries.
Previously, cardholders could conduct multiple ATM transactions by punching in their PINs only once.
An alarming rise in ATM-related theft prompted the policy change, the central bank said in the notification. The bank said it received many complaints regarding card skimming at ATMs.
In one type of common fraud complaint, fraudsters tampered with ATMs so cardholders could not conduct transactions or get their cards back from the machine. Once the cardholder left the location believing he would get a new card, fraudsters were able to withdraw cash thanks to the previous session still active with the PIN already punched in once.
In another common complaint, cardholders would forget to collect their ATM cards after conducting their transactions, the central bank said.
What do you think about this? Send us your feedback.
