MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) and (b):As per information compiled by Reserve Bank of India, data on frauds involving
ATM cards are as below:
(Amt in Rs. Crore)
Year 2007 2008 2009 2010-11(April to Sept.30,2010)
No.of Amt No.of Amt. No.of Amt. No.of Amt. cases cases cases cases
Total 153 2.65 153 2.46 296 2.79 204 2.12
Out of the above cases, in a few cases the data from the genuine ATM cards were stolen and
separate ATM cards had been created. Using such cards, money had been withdrawn from the
accounts of the original ATM card holders.
RBI has taken following steps :
1. RBI had issued a circular on 26.6.2006 listing out various measures that could be
initiated by the banks including measures to educate customers through handouts, e-mails,
display at ATM terminals, websites etc. and operational and security measures to be taken
by the banks to prevent fraudulent withdrawal from ATMs and misuse of credit/debit cards.
2. To avoid ATM frauds, RBI vide its Master Circular dated July 1,2010 had advised the
following :
2(i) With a view to reduce the instances of misuse of lost/stolen cards,
Banks/NBFCs may consider issuing (i)cards with photographs of the card holders
(ii) Cards with
Pin and (iii) signatures laminated cards and any other advanced methods that may evolve from
time to time.
2(ii) RBI had issued a Circular dated February 18, 2009 on `Security issues and risk
mitigation measures relating to on-line card transactions using credit/debit cards,
advising banks to put in place a system of providing for additional authentication/validation
based on information not visible on the cards for all on-line card not present transactions
with effect from August 01, 2009 and a system of `Online Alerts` to the cardholder for all
card not present` transactions of the value of Rs.5000/- and above,
2(iii) Banks have been advised to block a lost card immediately on being informed by the
customer and formalities, if any, including lodging of FIR can follow within a reasonable
period.
2(iv) Banks has also been advised to consider introducing, at the option of the customers,
an insurance cover to take care of the liabilities arising out of lost cards.
