At a time when ATM crimes are on the rise, Punjab National Bank has taken a brave step to ensure the safety of its customers. To prevent its customers from falling prey to any kind of fraud related to money transactions, PNB has decided to boycott certain automated teller machines (ATMs).
Instead, the Indian public sector bank has come up with a more secure alternative for withdrawal of cash. Continue to know about the upgrades made by PNB.
Which ATMs Are Spurned By PNB?
PNB has prohibited the financial as well as non financial transactions through non EMV ATMs for all its users from 1st Feb 2021. This huge decision is made to keep a track on the potential frauds and ensure the safe withdrawal of cash for the customers.
The bank notified its customers about the restrictions on transaction through Twitter:
The vulnerability of non EMVs must have forced PNB to abolish its use even though all the ATMs are not equipped with EMV machines yet.
Why Are Non EMV ATMs unsafe?
The non EMV ATM machines ask the customer to swipe their cards on the machines instead of holding them throughout the transaction. They store the data statically in magnetic stripes making it prone to card shimming and skimming.
To rectify the drawbacks of these traditional ATMs, Europay, MasterCard and Visa (EMV) introduced a chip card which encrypts the data stored in the card each time it is used. By creating unique transaction codes, the EMVs provide way more security.
However, by discouraging the usage of non EMV ATM machines, PNB aims to introduce OTP based systems for withdrawing cash. When implemented, this system will give an additional layer of security to the customers.
How Does OTP Based Cash Withdrawal Works?
We had earlier reported that it would be compulsory for PNB customers to get an OTP for carrying out transactions. These one time passwords are needed to withdraw money equal to or more than Rs 10,000 between 8pm to 8am.
These temporary passwords issued by the ATMs are random strings of numbers and are valid for a single transaction. Because of its dynamic nature it offers more security to the customers.
To use PNB’s OTP system to withdraw cash, the customer can visit any PNB ATM, insert a debit or credit card and fill in the necessary details as done usually. In case of transactions more than Rs 10,000, customers will receive an OTP on the mobile number which is registered with their bank account. The cash can be received once the OTP is entered in the machine.
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