Key in more often

New Delhi, Jan. 5: Next time you go to a bank ATM, be ready to enter your PIN afresh for every transaction you wish to conduct, such as money withdrawal, balance enquiry and checking account details.

To check the misuse of ATM cards by unauthorised people, the 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 by inserting or swiping the card and entering the PIN include withdrawal of money, deposits, fund transfer, bill payments, checking account details.

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 unauthorised people, especially if customers forgot to collect their ATM cards.

There had also been cases when some people tampered with the ATMs in a way that a customer couldn’t collect the ATM card. Once the customer moved out of the ATM machine thinking that the withheld card needed to be collected from the bank, the fraudster went into the ATM and withdrew money as the previous session remained active with the PIN already punched in.

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

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

In a circular to its customers, HDFC Bank said, “According to RBI guidelines, you will need to re-enter your PIN for every additional ATM transaction in a single session, with effect from January 1, 2011.”

“Please ensure you enter the correct PIN for every transaction to avoid any inconvenience,” the bank said.

ATMs have become a preferred mode of transaction for both customers and banks because of convenience and cost-saving reasons.