Automated Teller Machine –Services and Precautions
Automated Teller Machines were the first step in the digital journey of banking system in India. In a short span of time, ATMS became very popular. As of now, more than 2,40,000 Automated Teller Machines are deployed across the country. The transactions that can be carried out through ATMs have also increased. Initially, ATMs were supporting only limited services like cash withdrawal, balance enquiry and mini statement generation. However, at present customer can enjoy a number of value added services also through ATMs. Recharging of mobile phone, investment in mutual funds, payment of insurance premium etc too can be carried out through ATMs.
Services through ATMs / WLAs/ BLAs.
ATMs and Brown Label ATMs ensure same set of operations. But, all these services are not extended through White Label ATMs. Comparison of services extended is as follows:
* Cash withdrawal
* Account Information
* Mini / Short Statement Generation
* ATM PIN change
* Cheque Book requisition
* Cash Deposit (not permitted at WLAs)
* Regular Bills Payment (not permitted at WLAs)
* Purchase of Re-load Vouchers for Mobiles (not permitted at WLAs)
For transacting at an any of the Automated Teller Machines, the customer should have an active account, valid card and Personal Identification Number (PIN). The ATM / ATM cum debit cards, credit cards and open loop prepaid cards can be used at ATMs/WLAs for various transactions. Cards issued by any bank can be used in ATM of any other bank/WLA/BLA. However, beyond stipulated number of transactions, financial and non-financial transactions attract charges.
Importance of Personal Identification Number (PIN)
PIN is a numeric password set by the customer for authenticating card transactions. The initial numeric password is separately mailed / handed over to the customer by the bank while issuing the card. The customer will be demanded to change the PIN while using the ATM card for the first time. For carrying out transactions, this PIN number must be entered. Any person, in possession of the card can carry out a transaction only if the PIN is disclosed to him by the cardholder. Hence, to safeguard the balance in the account, customers should not disclose PIN to anybody, including to bank officials. Fraudsters adopt various methods to obtain card numbers from customers and such frauds can be prevented only if due caution is taken by customers in not disclosing the PIN to anybody.
Magnetic Stripe cards and EMV Chip cards
The main difference between magnetic stripe card and EMV chip card is in the storage of data relating to card. In Magnetic stripe cards, card data is stored on magnetic stripe present on the card. In the case of an EMV Chip card, data is stored in a chip. The EMV Chip cards are considered to be safer compared to Magnetic Stripe cards, as it is difficult to copy data from the chip. Thus, EMV chip cards reduce frauds.
Can Banks in India issue Magnetic Stripe cards now?
Banks were instructed by the Reserve Bank of India (RBI) to replace all existing Magnetic Stripe cards with EMV Chip cards before December 31, 2018. To comply with the rule, banks had stopped issuing Magnetic Strip Cards for some time. However, in many big banks, the process of replacing magnetic stripe cards is lagging in progress because of the huge number of cards to be replaced. Majority of banks have already forwarded the EMV chip card to customers. If the card holder has not received the card so far, should contact with the branch of the customer.
