The ATM cash retraction facility is a useful and safe technology that will help protect customers and banks from fraud. This initiative will make the banking experience more reliable while keeping the customers’ cash safe.
RBI is going to make a big change in the rules of cash withdrawal at ATM booths. Under this change, cash withdrawal facility will be re-implemented in selected ATMs. This facility is being re-introduced by RBI with the aim of protecting customers and preventing fraud. With this technology, now if the customer does not take cash within the stipulated time, then the ATM machine will withdraw that cash.
New security cover for customers
Cash retraction in ATM is a technique in which if the customer does not take out cash from the cash tray of the ATM within the stipulated time, then the machine pulls that cash back into its system. This facility was present earlier also but it was stopped in 2012. The reason was its misuse. Fraudsters used to withdraw partial cash and the record of the entire amount was recorded in the machine. Due to this, banks had to suffer financial loss.
RBI has now decided to restart it with more advanced technical measures so that the safety of customers can be ensured and fraud can be prevented.
Preparation to stop new methods of fraud
After the cash retraction facility was stopped, fraudsters found new ways of cheating at ATM booths. For example, they used to put a fake cover on the cash tray of the ATM and trap the cash taken out from the machine. The customer used to think that his transaction has failed, whereas the cash was stuck there. After this, the fraudsters used to remove that fake cover and steal the money.
Keeping this problem in mind, RBI has instructed banks to implement more advanced security measures in ATMs to prevent such frauds.
The facility will be started first at these places
RBI has instructed that the cash retraction facility should be implemented first in those ATMs where the incidence of fraud is high. Banks have been asked to upgrade their ATM machines and make necessary technical changes. This will ensure that the cash of the customers is safe and the cases of fraud are reduced.
Cash Retraction
The cash retraction technology will not only solve the problem of customers accidentally leaving cash but will also stop fraudsters who try to steal money of other customers. This will prove to be an important security measure for both banks and customers.