Lok Sabha Question No. 1005 (UNSTARRED), answered on 2019-02-08
Subject: ATM Frauds
Ministry: FINANCE
Asked by: MOHANBHAI KALYANJIBHAI KUNDARIYA, RAJESHBHAI NARANBHAI CHUDASAMA

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

## LOK SABHA UNSTARRED QUESTION No. 1005

TO BE ANSWERED ON Friday, February 8 , 2019/Magha 19, 1940 (Saka)

ATM Frauds

## 1005. SHRI KUNDARIYA MOHAN BHAI KALYANJI BHAI:

## SHRI RAJESHBHAI CHUDASAMA:

- (a) whether the Government has taken note of the recent spurtlincrease in cases of Automated Teller Machine (ATM) frauds in the country, if So, the number of such cases reportedlregistered, investigated and action taken during the last three years, State/UT-wise particularly Gujarat;

(b) whether the Government has formulated a policy to check such frauds, if so, the details thereof; and (c) if not, the measures taken by the Government in this regard including steps to strengthen safety and security at ATMs particularly in secluded areas? being

## Answer The Minister of State in the Ministry of Finance (SHRI SHIV PRATAP SHUKLA)

(a) to (c) As apprised by Reserve Bank of India (RBI) , specific information on ATM fraud is not available, However State/UT-wise data on ATMDebit Card' frauds (Amount involving Rs. 1 lakh and above) during the last three years as provided by RBI is Annexed:

vide RBI's Master Circular on Frauds-Classification and Reporting dated banks are advised to examine the fraud cases and report them to law enforcement agencies, examine staff take  steps t0 recover the amount involved in the fraud, claim insurance wherever applicable and streamline the system as also the procedures so that frauds do not recur.

As per RBI s circular on Customer Protection Limiting Liability of Customers in Unauthorised Electronic Banking Transactions' dated 6.7.2017 , in case of unauthorised transactions occurring due to contributory fraud/negligenceldeficiency on the part of the bank and due to third party breach with customer notifying the bank within three working days of receiving communication from the bank regarding the unauthorised transaction, the customer is entitled t0 zero liability.

RBI; vide its circular dated 21.6.2018 on Control measures for ATMs Timeline for compliance' has advised banks t0 initiate immediate action to implement the control measures for ATM, including upgradation of software in a time bound manner and to closely monitor the compliance

Further , RBI, vide its circular dated 27.8.2015 on 'Security and Risk Mitigation Measures for Card Present and Electronic Payment Transactions has advised banks t0 ensure that by December 31 2018 all active cards issued by them are EMV Chip and Pin-based.

Vide circular 0f RBI dated 6.7.2017 as mentioned above, banks are advised to provide customers with 24x7 access through multiple channels (at a minimum via website, phone banking, SMS , e-mail, IVR a dedicated toll-free helpline , reporting to home branch, etc. ) for reporting unauthorised transactions that have taken place and/ or loss or theft of payment instrument; such as, card, etc.

Annexure as refrerred in the part (a) to the Lok Sabha Unstarred Question No. 1005 to be answered on 8.2.2019 regarding ATM Frauds'

ATMDebit Card Frauds Reported by Schedule Commercial Banks and selected financial institutions during last three years (Amount involving Rs. 1 lakh and above)

|                   | 2015-16      | 2016-17      | 2017-18      |
|-------------------|--------------|--------------|--------------|
| State             | No.of Frauds | No.of Frauds | No.of Frauds |
| Andhra Pradesh    | 28           | 20           | 3            |
| Arunachal Pradesh |              |              | 2            |
| Assam             |              | 2            | 68           |
| Bihar             | 4            | 4            | 5            |
| Chandigarh        | 3            | 6            | 3            |
| Chhattisgarh      | 3            | 1            | 2            |
| Delhi             | 47           | 115          | 132          |
| Goa               |              | 6            | 2            |
| Gujarat           | 26           | 13           | 16           |
| Haryana           | 27           | 54           | 45           |
| Himachal Pradesh  |              | 1            | 2            |
| Jammu & Kashmir   |              |              | 6            |
| Jharkhand         | 2            | 9            | 2            |
| Karnataka         | 63           | 94           | 80           |
| Kerala            | 2            | 8            | 10           |
| Madhya Pradesh    | 5            | 2            | 10           |
| Maharashtra       | 179          | 223          | 242          |
| Meghalaya         |              |              |              |
| Nagaland          |              |              | 2            |
| Orissa            | 6            |              | 4            |
| Pondicherry       | 1            | 2            | 1            |
| Punjab            | 3            | 2            | 23           |
| Rajasthan         | 3            | 8            | 12           |
| Tamil Nadu        | 97           | 102          | 131          |
| Telangana         |              |              | 31           |
| Tripura           |              |              |              |
| Uttar Pradesh     | 30           | 31           | 37           |
| Uttaranchal       | 3            | 5            | 10           |
| West Bengal       | 10           | 15           | 20           |
| Overseas          | 13           | 6            | 8            |
|                   | 563          | 724          | 911          |

Source: Reserve Bank of India (RBI)