Bank of India (BOI) in association with AGS Transact Technologies, an online payment systems provider has launched a new product that can allay many fears concerning transactions from ATM. If you withdraw money from the ATM with the fear that someone might steal the crucial information, or there might be any hidden camera installed that can do huge damage to you and your financial well being, then this product can put an end to all your fear.
BOI has introduced the system in which you can use the QR Code on the bank’s Unified Payment Interface App and the ATM; you will be able to make cash withdrawals without using your debit card.
This has huge potential to bring down the number of frauds taking place in relation to ATM withdrawal in India
You need to be a Bank of India customer to use this feature, which is available at some of the bank’s ATMs in Mumbai; the full rollout is planned in three to six months.
1. You need to download the bank’s UPI app. Next, select the QR cash feature on the Bank of India ATM screen. Then, select the amount to be withdrawn and scan the QR code generated on the ATM screen using the “scan and pay" feature of the UPI app.
2. For successfully conducting transactions through this, you need to know two PINs the one to open the bank’s UPI app and the PIN for UPI transfers. A one-time password (OTP) is not required.
“This solution provides the next level of security for ATM transaction as there is no requirement of card and PIN," said G. Padmanabhan, Chairman, Bank of India.
QR technology appears more secure and safe. But what if you lose your phone? This will not necessarily lead to fraud because your PIN numbers are still required to use this facility. In addition, the bank has capped withdrawals at Rs 2,000 per transaction for now.
The terms for the number of free withdrawals and withdrawal charges will remain the same as in the case of withdrawals through debit cards.
“For banks planning to deploy this on their ATM network, there is no major investment required as it is possible to offer the service by making a small upgrade to the existing software in ATMs," said Ravi Goyal, Chairman and MD, AGS Transact Technologies.
Now, it is quite interesting to see how other banks, taking cue from this, will develop a system for more safe and secure ATM withdrawals.