Amid a massive rise in the fraud cases happening through bank ATM cards or debit cards like cloning and skimming, India's one of the largest public sector bank Bank of India (BOI) has issued an advisory for its customer. The bank in its statement has warned its customer of banking fraud and has asked them to stop using a debit card or ATMcard for cash withdrawal.
Earlier, in August a video of cloning mechanism installed in Delhi's Canara Bank ATM had widely gone viral on social media. After which several banks including, SBI, HDFC, ICICI and many others had warned its customer of the fraudster. In fact, Canara Bank itself warned its customers about taking correct precautions while withdrawing money.
And now, Bank of India has made a bold move minimize the frauds and has come up with a new trick where you do not need to use your debit or credit cards to withdraw cash at ATMs, a QR code is enough!
Bank of India has launched QR based cash withdrawal system that does not require ATM cards to withdraw cash anymore.
With this, the bank has reduced curbing ATM cloning, skimming and ATM-related frauds and has promoted card-less cash withdrawals.
The Chairman of Bank of India, G Padmanabhan said, “We believe providing access to cash using a QR code will provide a requisite push to the adaption of QR form factor. Once it becomes interoperable the usage will increase multifold. This also provides the next level of security for ATM transactions as there is no requirement of the card and the PIN.”
How Does QR Based Cash Withdrawal System Work?
You can now withdraw cash from an ATM using a QR code from your mobile. Here’s how you can do this:
- On your ATM screen, there will be a ‘QR Cash’ option. When you select that, two more options will appear: Deposit and Cash Withdrawal.
- Select the cash withdrawal option, which will ask you to enter the amount that is needed to be withdrawn.
- A QR Code will appear which you will have to scan through the mobile app on your smartphone.
- Once confirmed, you will be required to insert your M-Pin, after which cash will be dispensed by the machine.
- A maximum limit of Rs. 2000 has been set for cash withdrawals of this type.