ATM frauds in India are rising rapidly and many people have lost lakhs of money to this fraud. When compared to the last year, the country has experienced an increase in the number ATM frauds. Cybercrooks employ various tricks to cheat people who withdraw cash from ATM. The most common trick used is card skimming and hidden cameras. In India, Maharashtra has experienced the highest number of ATM frauds with 233 cases in 2018-19. It is followed by Delhi with 179 cases and Tamil Nadu with 147 cases.
With the increase in the number of ATM frauds, people are actually worried about withdrawing cash from ATM. To avoid this, now Bank of India has come up with the new method to withdraw cash from ATM. Very soon, customers will be allowed to withdraw cash from ATM using UPI. Bank of India in association with AGS Transact Technologies Ltd, has come up with this system where customers can use the QR code of BoI's UPI and the ATM to withdraw money.
Right now only customers of Bank of India can avail this service at some ATMs in India. In the future, this system could be made universal where you will be able to withdraw cash from ATM using any UPI app.
If you are a customer of Bank of India, you will be able to use this facility at some ATM's in Mumbai. The bank is planning to roll-out this facility fully in the next three to six months. To use this service, first, you have to download the bank’s UPI app. Next, you have to select the QR cash feature displayed on the ATM screen of the Bank of India. Later, you have to select the amount you have to withdraw from the ATM. After selecting the amount, the QR code will be generated on the ATM screen. You have to scan the QR code by using the “scan and pay" feature of the UPI app.
To carry out this transaction, you are required to know tow PINs, the first one is to open the bank app and the second PIN is for UPI transfer. Here, you don't have to enter a one-time password (OTP) to complete the transaction.
This facility provides the next-level security for ATM transaction as you don't have to insert your ATM card and enter your PIN in the ATM machine. This is actually more secure than making debit card withdrawal. But, you might have a question what happens if I lose my phone? Even if you lose your phone, it will not lead to any kind of fraud as PIN numbers are required to carry out any transaction. Also, as of now, the bank as capped maximum withdrawal at Rs 2,000 per transaction. The rules applicable to the number of free withdrawals and withdrawal charges will be the same as in the case debit card withdrawals.
As per the chairman and managing director of AGS Transact Technologies, major investment is not required for banks planning to deploy this on their ATM network, as it is possible to offer the service by making a small upgrade to the existing software in ATMs.
Even other banks offer cardless withdrawals from ATMs. SBI has come up with Yono app where you will be allowed to set a cash withdrawal PIN. You will be allowed to make a cardless withdrawal from select SBI ATMs using this PIN and an OTP.
If this system is adopted by all the banks, you can save yourself from the card skimming which is widely rampant. In India, many people have lost their money to card skimming. Card skimming is a technique used by fraudsters to steal your card information. This happens when you insert your card in an ATM machine.
But, the major drawback of this system is its dependency on the internet. You won't be able to carry out this transaction without the internet.
Not happy with a product or service? Just visit IndianMoney.com’s complaint portal IamCheated.com and post your issue. We’ll get in touch with the concerned entity and help you with the resolution. With an aim to spread awareness on fraudulent activities, we publish articles and videos on a regular basis. You can also publish reviews about companies on IamCheated.com