RBI ATM Cash Withdrawals Rule: RBI is set to implement a significant modification in the regulations regarding cash withdrawals at ATM kiosks. In accordance with this, the cash withdrawal option will be reinstated at certain ATMs nationwide. In this case, the ATM will dispense the cash that the customer fails to collect within the specified period.
This measure has been implemented to ensure customer safety and to avert fraud. Cash withdrawal is a feature in ATMs that allows the machine to retract the cash if the customer fails to take it from the cash tray within a specified time limit.
This facility was exploited by fraudsters
Previously, this facility was exploited by fraudsters who would withdraw a portion of the funds, while the machine’s log would inaccurately document the entire amount as withdrawn. This was leading to significant losses for the banks. As a result, RBI eliminated this service in 2012. Nevertheless, following this, the scammers have discovered an alternative method to perpetrate fraud at the ATM kiosk. They place a phony cover over the cash compartment of the ATM and shut it, causing the cash dispensed by the machine to be trapped and not visible to the user. He believes the transaction was unsuccessful and walks away.
Subsequently, the scammers arrive and take away the phony cover to collect the money. RBI has directed banks to adopt a cash withdrawal system that ensures enhanced technical security. This method will be particularly beneficial in situations where clients accidentally forget to take out cash or are unable to do so for some reason. Additionally, if a fraudster attempts to steal money from another customer, this method will aid in preventing him too. Banks have been directed to reinstate this service in ATMs where the risk of this kind of fraud is significant.