New rules for using ATM’s

Next time you go to a bank ATM, be ready to re-enter your PIN afresh for every transaction you wish to conduct, such as money withdrawal, balance enquiry and checking account details.

In order to check misuse of ATM cards by unauthorized people, RBI has asked banks to allow only one transaction at ATM machines for one entry of PIN (Personal Identification Number which acts like a password for ATM transactions).

The transactions that a bank customer can conduct through the ATMs (automated teller machines), by inserting or swiping the card and entering the PIN, include withdrawal of money, deposits, fund transfer, bill payments, checking account details, etc.

Previously, customers were allowed to conduct multiple transactions through the ATM by punching in their PIN only once in a single session. However, the practice was vulnerable to misuse by unauthorized people, especially in case authorized customers forgot to collect their ATM card after the transactions. There have also been cases when some people tamper with the ATM machines in a way that a customer cannot collect the ATM card after conducting the transaction.

Once the customer moves out of the ATM machine thinking that the withheld card needed to be collected from the bank, the fraudster goes into the ATM and withdraws money as previous session remains active with the PIN already punched in.

Having received several complaints about the vulnerabilities of the existing practice, RBI has asked the banks to make changes in their systems to allow only one transaction for every entry of the PIN.

Although, RBI had asked all banks to follow these guidelines with effect from January 1, 2011, some of the banks are still in the process of updating their systems with the required changes. In the meantime, the banks have started communicating to their customers about the changes in the way ATM transactions are conducted.

As per RBI guidelines, you will need to re-enter your ATM PIN for every additional ATM transaction in a single session, with effect from January 1, 2011. ATMs have become a preferred mode of banking transactions for both customers and banks, due to the convenience and cost-saving factors.

Source : Rediff Business

Indian tech pioneers, making money reach millions!

We all know how ATMs have become an inseparable part of our lives making it a lot easy for us to deal with day to day money requirements.

Here’s a story of these two Tech Pioneers who went out of their way to design a low cost ATM for the rural India. Not too long ago when Lakshminarayan Kannan set out to design a low-cost ATM to help deliver banking to the rural poor.

That was the time when he teamed up with Mr.Vijay Babu of Vortex to turn his inexperience into an advantage to create an ATM that would be suitable for various villages across India. This sentiment as meant for the good took a positive turn later on, soon after which they came up with Gramteller a low cost robust ATM, which today is a great success.

It is these few very people with a vision for our country, who inspire us to keep moving in the journey of life.