Bankers suggest time lag between ATM withdrawals in New Dehli

As a way to combat fraud in the city, a group of bankers in New Delhi have suggested a time lag of six to 12 hours between two cash withdrawals at ATMs.

The recommendation came in a meeting involving representatives of 18 banks last week, The Times of India reported.

Mukesh Kumar Jain, CEO of Oriental Bank of Commerce and convener of the Delhi State Level Bankers' Committee, told the Times that fraud often takes place late at night. A ban on transactions between the hours of midnight and early morning could limit these incidents.

If the governing bodies accept the proposal, Indians will not be able to withdraw cash during the stipulated period.

Another suggestion that resulted from the meeting included a one-time password linked to withdrawals and developing a system similar to the one used for online transactions using debit and credit cards.

The bankers also discussed ways to monitor ATMs with two-way communication. So, for instance, if a suspicious looking character were to walk up to an ATM, an authoritative voice might advise them to leave. 

ATM fraud is a growing problem in India. According to data from the Reserve Bank of India, 179 cases of ATM fraud were reported in Delhi between 2018 and 2019. It was the second highest in the entire country after 233 reported in Maharashtra.

Most commonly, fraudsters place skimmers on ATMs and point-of-sale devices to capture card numbers. They then transfer the data to fresh cards and use those to siphon cash out of machines. According to an earlier article in the Times, gangs also actively target ATMs that aren’t well monitored. 

Earlier this month, the Reserve Bank of India clarified rules governing free ATM transactions. The apex bank asked banks not to treat failed transactions at ATMs or non-cash transactions, such as balance inquiries, as valid transactions.