The rate at which frauds happening through ATM cloning and skimming is truly disturbing and its high time security measures are implemented against such frauds.
The recent video that went viral on Twitter about how cloning mechanism was installed in a Canara Bank ATM pushed Canara Bank to warn their customers about taking correct precautions while withdrawing money.
ICICI Bank too issued guidelines for its customers about how to stay alert in case of online monetary frauds.
And now, Bank of India has come up with a new way where your debit or credit cards are no longer needed to withdraw cash at ATMs, a QR code is enough!
Read on for more details about this new system that the Bank of India has come up with!
Bank of India Launches QR Based Cash Withdrawal System
The Bank of India has introduced a new system that does not require ATM cards to withdraw cash anymore. With this, the bank has killed two birds with one stone, one being an attempt at curbing ATM cloning, skimming and ATM-related frauds, the other one promoting card-less cash withdrawals.
The Chairman of Bank of India, G Padmanabhan said, “We believe providing access to cash using a QR code will provide a requisite push to the adaption of QR form factor. Once it becomes interoperable the usage will increase multifold. This also provides the next level of security for ATM transactions as there is no requirement of the card and the PIN.”
AGS Transact Technologies has been given the responsibility of installing this system in every ATM, which will first debut in Mumbai, Delhi and Chennai. This system will be launched across the nation within the next six months.
SBI has already urged its customers to limit their use of debit cards and use their YONO app for cash withdrawals.
How Does QR Based Cash Withdrawal System Work?
You can now withdraw cash from an ATM using a QR code from your mobile. Here’s how you can do this:
- On your ATM screen, there will be a ‘QR Cash’ option. When you select that, two more options will appear: Deposit and Cash Withdrawal.
- Select the cash withdrawal option, which will ask you to enter the amount that is needed to be withdrawn.
- A QR Code will appear which you will have to scan through the mobile app on your smartphone.
- Once confirmed, you will be required to insert your M-Pin, after which cash will be dispensed by the machine.
A maximum limit of Rs. 2000 has been set for cash withdrawals of this type.
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