RBI alarmed by ATM frauds; asks banks to implement strict security measures

RBI alarmed by ATM frauds; asks banks to implement strict security measures

New Delhi, Jun 22: In the wake of rising number of ATM frauds, the Reserve Bank of India yesterday asked banks to upgrade their ATMs or else face action.
All banks are asked to implement a host of security measures by August and upgrade all ATMs with supported version of operating system in a phased manner by June next year.
RBI has directed banks to implement anti-skimming and whitelisting solutions by March 2019. Skimmers are devices that can be attached over an ATM machine’s card slot to read information from the card. The information collected by such devices is then used for cloning.
Anti-skimming devices prevent the skimmer from functioning. Similarly, whitelisting solutions allow only trusted applications to work on the ATM and block any other application.
In April 2017, the RBI through a “confidential circular” to banks had highlighted concerns about the ATMs running on Windows XP and/or other unsupported operating systems. “The slow progress on the part of the banks in addressing these issues has been viewed seriously by the RBI,” the central bank said in a circular to heads of banks and white label ATM operators, a news agency quoted the RBI circular.
The RBI said that the vulnerability arising from the ATMs operating on unsupported version of operating system and delay in implementing other security measures could hurt customers adversely and damage bank’s image. “It may be noted that any deficiency in timely and effective compliance with the instructions contained in this circular may invite appropriate supervisory enforcement action under applicable provisions of the Banking Regulation Act, 1949 and/or Payment and Settlement Systems Act, 2007,” the circular said.