Do you think OTPs for every ATM transaction will reduce the risk of frauds?The SBI has announced that from 31st October 2018, the daily cash withdrawal limit through ATM cards will be reduced to Rs. 20000/- from the present limit of Rs. 40000/-. There are wide ranging complaints of frauds arising from ATM counters where skimming devices are found to be attached to the ATMs through which all the necessary card details are going in to the hands of the fraudsters. The decision to reduce the daily cash withdrawal limit is taken to check these types of frauds and to promote digital transactions. It is not clear how this measure is going to reduce frauds where skimming devices are used in ATM machines. We all know that these types of frauds happen with POS terminals too and every now and then the RBI or the government issues safety precautionary measures.
While making online transactions through debit cards, we receive an OTP in our mobile devices for each transaction and I find this a good measure to check frauds. If this method is implemented in ATM transactions too, then we can expect some reduction in the deceitful activities. Though this method will be little time consuming since for every transaction we have to wait for a little moment for receiving the OTP, but may be an effective step. Members do you agree?