USEFUL INFORMATION ABOUT ATM

CA Sanat Pyne (F.C.A. & M.COM) (20102 Points)

06 January 2011  

One ATM transaction for one PIN entry wef 01.01.2011 :RBI

Next time you go to a bank ATM, be ready to re-enter your PIN afresh for every transaction you wish to conduct, such as money withdrawal, balance enquiry and checking account details.

In order to check misuse of ATM cards by unauthorised people, RBI has asked banks to allow only one transaction at ATM machines for one entry of PIN (Personal Identification Number which acts like a password for ATM transactions).

The transactions that a bank customer can conduct through the ATMs (Automated Teller Machines), by inserting or swiping the card and entering the PIN, include withdrawal of money, deposits, fund transfer, bill payments, checking account details etc.

Previously, customers(some banks) were allowed to conduct multiple transactions through the ATM by punching in their PIN only once in a single session.

However, the practice was vulnerable to misuse by unauthorised people, especially in case authorised customers forgot to collect their ATM card after conducting the transaction.

There have also been cases when some people tamper with the ATM machines in a way that a customer cannot collect the ATM card after conducting the transaction. Once the customer moves out of the ATM machine thinking that the withheld card needed to be collected from the bank, the fraudster goes into the ATM and withdraws money as previous session remains active with the PIN already punched in.

Having received several complaints about the vulnerabilities of the existing practice, RBI has asked the banks to make changes in their systems to allow only one transaction for every entry of the PIN.

Although, RBI had asked all banks to follow these guidelines with effect from January 1, 2011, some of the banks are still in the process of updating their systems with the required changes. In the meantime, the banks have started communicating to their customers about the changes in the way ATM transactions are conducted.


 

SAFETY TIPS FOR USE OF ATM CARD USEFUL TIPS

 

Protecting Your Card

  1. Keep your card in a safe place to avoid damage.
  2. Memorize your Personal Identification Number (PIN). Never write the PIN down on anything in your wallet or on the card itself.Never tell your PIN to any third person, whether to family member, office staff.
  3. When selecting a PIN, avoid numbers and letters that relate to your personal information. For example, don't use your initials, birthday, telephone or vehicle number ,if you have such a number, contact your bank and get a new PIN issued.In most of ATM ,you can change your ATM pin yourself.
  4. Immediately report a lost or stolen card to your financial institution.
  5. To help guard against fraud, keep your ATM receipts until you check them against your monthly statement.


Safety Tips at the time Of withdrawal 

  1. Observe your surroundings before using an ATM. If the machine is obstructed from view or poorly lit, visit another ATM..
  2. Take a friend with you - especially at night.
  3. Have your card out and ready to use.
  4. Shield the screen and keyboard so anyone waiting to use the ATM cannot see you enter your PIN or transaction amount.
  5. Put your cash, card and receipt away immediately. Count your money later, and always keep your receipt.
  6. If you see anyone or anything suspicious, cancel your transaction and leave immediately. If anyone follows you after making a transaction, go to a crowded, well-lit area and call the police.
  7. When using an enclosed ATM that requires your card to open the door, avoid letting strangers follow you inside.
  8. Check with your financial institution to determine what the daily limit of funds that can be withdrawn from your account is.
  9. Use swap ATM machine ,Machine which take ATM card inside are risky and some time they ate your ATM card ,due to input of wrong ATM pin ,withdrawal amount given is more than balance and for other reason .
  10. Use Your own Bank machine ,where ever possible .the reason is that if there is a problem in Transaction then problem can be solved by your bank directly but if other banks ATM is used then to solve dispute you have to contact two bank branches.
  11. If your card jammed in ATM, report this immediately to the bank.