Lok Sabha Question No. 1375 (UNSTARRED), answered on 2019-07-01
Subject: Cash Siphoning from ATMs
Ministry: FINANCE
Asked by: Dibyendu Adhikari

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED QUESTION NO. 1375

## TO BE ANSWERED ON 01 th  JULY, 2019 / ASHADHA 10, 1941 (SAKA)

## 'Cash Siphoning from ATMs'

## 1375.    SHRI DIBYENDU ADHIKARI

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that the Government has received a number of complaints on siphoning of cash from ATMs of different banks;
- (b) if so, the details of the complaints received during the last two years, State and bank-wise;
- (c) the  details  of  the  guidelines  of  RBI  for  making  payment  to  customers  and  the  time  period  of returning cash in their account; and
- (d) the action taken by the Government to check and stop such illegal cash withdrawals?

## ANSWER

## THE MINISTER OF FINANCE (SMT. NIRMALA SITHARAMAN)

(a) & (b) : Details of the complaints received on siphoning of cash from ATMs during last two years (April, 2017 to March, 2019) is given at Annexure .

(c)  &  (d)  : Reserve Bank of India has issued instructions to Banks regarding limiting the customer liabilities in unauthorised/fraudulent electronic transactions vide their Circular dated 6 th  July, 2017. For customer protection, zero liability of a customer is assured in all cases of third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system and the customer notifies the bank within three working days of receiving the communication from the bank regarding  the  unauthorised  transaction.  On  being  notified  by  the  customer,  the  bank  shall  credit (shadow reversal) the amount involved in the unauthorised electronic transaction to the customer's account within ten working days from the date of such notification by the customer.

Further, the guidelines inter-alia addresses  the following areas for safeguarding the customers while handling the cases of unauthorised electronic banking transactions:

- (i)      Strengthening of system and procedures.
- (ii)     Reporting of unauthorised transactions by customers to banks.
- (iii)    Limited liability of a customer.
- (iv)    Reversal timeline for zero liability/limited liability of customer.
- (v)     Board approved policy for customer protection.
- (vi)    Burden of proof on banks.
- (vii)   Reporting and monitoring requirements.

*****

ANNEXURE REFERRED IN REPLY TO PART (A) & (B) OF REPLY TO LOK SABHA UNSTARRED QUESTION NO. 1375 FOR 01.07.2019 REGARDING "CASH SIPHONING FROM ATMs"

## DETAIL OF COMPLAINTS RECEIVED REGARDING SIPHONING OF CASH FROM ATMS OF DIFFERENT BANKS DURING LAST TWO YEARS (APRIL 2017 TO MARCH 2019)

| Name of the State/U.T.   |   Allahabad Bank |   Andhra Bank |   Bank of Baroda |   Bank of India |   Bank of Mah. * |   Canara Bank |   Central Bank |   Corp. Bank |   Indian Bank |   IOB |   OBC |   PNB |   PS&B |   Synd. Bank |   Union Bank |   United Bank of India | UCO Bank   | SBI   |   IDBI |   TOTAL |
|--------------------------|------------------|---------------|------------------|-----------------|------------------|---------------|----------------|--------------|---------------|-------|-------|-------|--------|--------------|--------------|------------------------|------------|-------|--------|---------|
| Andhra Pradhes           |                1 |             8 |                6 |               0 |                2 |             0 |              1 |            0 |             1 |     1 |     3 |    36 |      0 |            1 |            1 |                      2 | 0          | 6     |      3 |      72 |
| Aurnachal Pradesh        |                0 |             0 |                0 |               0 |                0 |             0 |              0 |            0 |             0 |     0 |     0 |     0 |      0 |            0 |            0 |                      0 | 0          | 12    |      0 |      12 |
| Assam                    |                4 |             1 |                7 |               0 |                0 |             0 |              4 |            0 |             0 |     0 |     0 |     2 |      4 |            1 |            1 |                     12 | 0          | 289   |      4 |     329 |
| Bihar                    |               14 |             0 |               16 |              16 |                1 |             0 |             37 |            0 |             0 |     2 |     4 |     6 |      2 |            0 |            0 |                      5 | 0          | 15    |     16 |     134 |
| Chhattisgarh             |                3 |             0 |               10 |               3 |                2 |             0 |              2 |            0 |             0 |     0 |     0 |     0 |      2 |            6 |            0 |                      2 | 0          | 31    |     45 |     106 |
| Goa                      |                1 |             0 |                9 |              25 |                2 |             1 |              9 |            7 |             0 |     2 |     5 |     2 |      0 |            0 |            1 |                      0 | 0 49       |       |     12 |     125 |
| Gujarat                  |                6 |             0 |              132 |              14 |                1 |             0 |             14 |            3 |             2 |     0 |     8 |     0 |      3 |           14 |            0 |                      0 | 0 4        |       |    184 |     385 |
| Haryana                  |               21 |             2 |               35 |               2 |                2 |             0 |              1 |            3 |             2 |     1 |    56 |    18 |     29 |            0 |            0 |                      0 | 0          | 85    |     86 |     343 |

| Himachal Pradesh   | 2    | 0      |   2 |   0 |   0 |   0 |   0 1 |   0 |   0 |   2 | 21   | 8     |   1 | 0   | 0    |   2 48 |   6 |   93 |
|--------------------|------|--------|-----|-----|-----|-----|-------|-----|-----|-----|------|-------|-----|-----|------|--------|-----|------|
| Jammu and Kashmir  | 0    | 0 1    |   1 |   0 |   0 |   0 |     0 |   0 |   0 |   0 | 3    | 0 0   |   0 | 0   | 0    |     60 |   0 |   65 |
| Jharkhand          | 11 0 | 7      |  27 |   0 |   0 |  14 |     0 |   0 |   0 |   2 | 2    | 2 35  |   0 | 6   | 0    |     18 |  46 |  170 |
| Karnataka          | 8 0  | 32     |  10 |   4 |   2 |  19 |    14 |   6 |   3 |  13 | 0 4  | 2     |   2 | 0   | 0    |     65 | 113 |  297 |
| Kerala 0           | 0    | 7      |   4 |   0 |   0 |   0 |     1 |   0 |   1 |   2 | 3    | 1 2   |   0 | 0   | 0    |     61 |  28 |  110 |
| Madhya Pradesh     | 6 0  | 17     |  14 |   6 |   0 |  27 |     0 |   0 |   1 |   6 | 9    | 11 53 |   1 | 2   | 0    |     69 |  27 |  249 |
| Maharashtra        | 26   | 10 495 | 432 | 170 |   1 | 167 |    25 |   9 |   4 |  95 | 187  | 14 0  |  73 | 9   | 3    |    492 | 558 | 2770 |
| Manipur 0          | 0    | 0      |   0 |   0 |   0 |   0 |     0 |   0 |   0 |   0 | 0    | 0 0   |   0 | 3   | 0    |      7 |   0 |   10 |
| Meghalaya 0        | 0    | 2      |   0 |   0 |   0 |   0 |     0 |   0 |   0 |   0 | 0    | 0 0   |   0 | 0   | 0    |     13 |   0 |   15 |
| Mizoram 0          | 0    | 0      |   0 |   0 |   0 |   0 |     0 |   0 |   0 |   0 | 0    | 0 0   |   0 |     | 0 0  |      2 |   0 |    2 |
| Nagaland 0         | 0    | 1      |   1 |   0 |   0 |   0 |     0 |   0 |   0 |   0 | 0    | 0 0   |   0 | 0   | 0    |     11 |   5 |   18 |
| Odisha 2           | 0    | 8      |   3 |   0 |   0 |   1 |     2 |   1 |   0 |   2 | 2    | 2 2   |   0 |     | 12 0 |     75 |   5 |  117 |
| Punjab             | 2 0  | 12     |  14 |   1 |   0 |  17 |     1 |   0 |   6 |  33 | 44   | 139 4 |   0 | 0   | 0    |     75 |  42 |  390 |
| Rajasthan          | 7    | 1 116  |   6 |   2 |   0 |  11 |     2 |   0 |   0 |  18 | 12   | 7 0   |   1 | 2   | 0    |     50 |  11 |  246 |

| Sikkim                    |   0 |   0 | 0       | 0   |   0 |   0 0 |   0 |   0 |   0 |   0 |   0 | 0    | 10     | 0   | 0   | 0 0   |   0 |   10 |
|---------------------------|-----|-----|---------|-----|-----|-------|-----|-----|-----|-----|-----|------|--------|-----|-----|-------|-----|------|
| Tamil Nadu                |   8 |   1 | 7 12    | 0   |   0 |    14 |   2 |  53 |   6 |   2 |  10 | 3    | 5 1    |     | 3   | 0 5   |  52 |  184 |
| Telangana                 |   0 |  12 | 14 4    | 0   |   0 |     4 |   2 |   0 |   1 |  29 |   0 | 2 0  | 0      |     | 0 0 | 27    | 101 |  196 |
| Tripura                   |   0 |   0 | 1 0     | 0   |   0 |     0 |   0 |   0 |   0 |   0 |   0 | 0 45 | 0      |     | 5 0 | 7     |   3 |   61 |
| Uttar Pardesh             | 102 |   6 | 264 94  | 19  |   0 |    80 |   9 |   3 |   9 | 108 | 301 | 109  | 4 23   | 14  | 2   | 167   | 132 | 1446 |
| Uttarakhand               |   1 |   0 | 26      | 3 1 |   0 |     6 |   1 |   0 |   1 |  15 |  55 | 14   | 2 1    | 0   | 0   | 138   |   9 |  273 |
| West Bengal               |  36 |   2 | 53      | 6 0 |   2 |    19 |   1 |   9 |   0 |   8 |  47 | 9    | 1 1    | 49  | 2   | 26    |  46 |  317 |
| Uts                       |   0 |   0 | 0       | 0 0 |   0 |     0 |   0 |   0 |   0 |   0 |   0 | 0    | 0 0    | 0   | 0   | 0     |   0 |    0 |
| Andaman & Nicobar Islands |   0 |   0 | 0       | 0 0 |   0 |     0 |   0 |   0 |   0 |   0 |   0 | 0 2  | 0      | 2   | 0   | 9     |   1 |   14 |
| Chandigarh                |   1 |   0 | 4       | 2 1 |   0 |     3 |   0 |   0 |   0 |   5 |  12 | 20   | 0 0    |     | 2   | 1 21  |  12 |   84 |
| Dadra & Nagar Haveli      |   0 |   0 | 1       | 3 0 |   0 |     0 |   0 |   0 |   0 |   0 |   0 | 0    | 0 0    |     | 0 0 | 0     |   0 |    4 |
| Daman & Diu               |   0 |   0 | 3       | 0 0 |   0 |     0 |   0 |   0 |   0 |   0 |   0 | 0    | 0 0    |     | 0 0 | 0     |   0 |    3 |
| Delhi                     |  64 |  13 | 429 175 | 49  |   1 |   354 |  58 |  59 |  31 | 191 | 498 | 202  | 214 35 | 26  | 3   | 531   | 231 | 3164 |
| Lakshadweep               |   0 |   0 | 0       | 0 0 |   0 |     0 |   0 |   0 |   0 |   0 |   0 | 0    | 0 0    |     | 0 0 | 0     |   0 |    0 |

| Pondicherry   |   0 |   0 |    0 |   0 |   0 |   0 |   0 |   0 |   2 |   0 |   0 |    0 |   0 |   0 |   0 |   0 |   0 |    0 |    0 |     2 |
|---------------|-----|-----|------|-----|-----|-----|-----|-----|-----|-----|-----|------|-----|-----|-----|-----|-----|------|------|-------|
| Total         | 326 |  56 | 1717 | 871 | 263 |   7 | 804 | 132 | 147 |  69 | 607 | 1270 | 587 | 404 | 141 | 156 |  13 | 2468 | 1778 | 11816 |