ATM cash withdrawals above ₹10,000 needs OTP in Canara Bank
Canara Bank has launched the first OTP facility for ATM withdrawals. In order to offer a more secured and safe system, Canara bank will activate OTP facility for cash withdrawals of Rs 10,000 or more in a day. In a tweet, the bank had announced, “We introduce India’s First OTP facility for ATM withdrawals. Withdrawals in our ATMs now more secure for our card holders.”
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This move is in line with banks trying to take security measures to safeguard customers who use debit cards to withdraw cash at ATMs.
Earlier this month, Reserve Bank of India (RBI) said that transactions on account of technical glitches including hardware, software, communication issues and non-availability of currency will not be counted as valid transactions. It added that no charge will be levied on the same.
“It has come to our notice that transactions that have failed due to technical reasons, non-availability of currency in ATMs, etc, are also included in the number of free ATM transactions,” said RBI in a statement, further adding, “It is hereby clarified that transactions which fail on account of technical reasons like hardware, software, communication issues; non-availability of currency notes in the ATM; and other declines ascribable directly / wholly to the bank/service provider; invalid PIN/validations; etc, shall not be counted as valid ATM transactions for the customer. Consequently, no charges, therefore, shall be levied.”
“Non-cash withdrawal transactions (such as balance enquiry, cheque book request, payment of taxes, funds transfer, etc), which constitute ‘on-us’ transactions (ie, when a card is used at an ATM of the bank which has issued the card) shall also not be part of the number of free ATM transactions,” the statement mentioned.
About Canara Bank
Canara Bank is one of the largest public sector banks owned by the Government of India. It is headquartered in Bengaluru. It was established at Mangalore in 1906 by Ammembal Subba Rao Pai. It is one of the oldest public sector banks in the country. The post of MD and CEO of Canara Bank is lying vacant since superannuation of Rakesh Sharma.
Need of OTP system to ATM Security
As the number of ATM units increase, the machines are prone to hacker attacks, fraud, robberies and security breaches. In the past, the main purpose of ATMs was to deliver cash in the form of bank notes, and to debit a corresponding bank account. However, ATMs are becoming more complicated, and they serve numerous functions, thus becoming a high priority target to robbers and hackers. The OTP system will be able to protect customers accounts from cyber hackers.