HC asks banks to step up security in ATMs

Cuttack: The Orissa high court has highlighted the need for the use of facial biometric identification to track persons involved in illegal withdrawal of money from ATMs.The two-judge bench of Justices Sangam Kumar Sahoo and Chittaranjan Dash in its order on Monday said, “We find that in many a case, a number of persons are making transactions in ATMs concealing their identity by covering their faces or by adopting some other methods.”“Therefore, if proper steps are taken by the bank authorities to install facial biometrics identification processes at ATMs, when the user approaches the ATM, the system would ask the user to show his face to the camera. ATM security camera can monitor and record potential skimming operations and even stop them before it starts.” the bench observed.“If somebody steals ATM PIN (Personal Identification Numbers) and uses the card for withdrawal of money or for making any transaction, the same can be recorded which would facilitate ascertaining the person’s identity, especially in cases where money is withdrawn illegally using ATM cards,” the bench further observed.State counsel A Das submitted he will apprise the state to discuss with the bank authorities and particularly, the Reserve Bank of India (RBI), to issue appropriate guidelines and make suitable infrastructure in ATMs to ensure that identities of persons making transactions can be retrieved by the investigating agencies as per the procedure of law, if the need arises. The court was hearing a habeas corpus petition filed by a father to trace and rescuing his minor girl after filing a complaint with Pirahat police station in Bhadrak. Apparently, the kidnapper had used an ATM card that belongs to his mother. But the investing officer said that when instructions were sought from the bank authorities to furnish the identity of the person who had withdrawn money from the ATM, the CCTV footage found a person wearing a cap, almost covering his face. The IO submitted the identity of the person could not be ascertained due to this reason.

FSS launches IoT, AI and ML-enabled ATMs

Financial Software & Systems Pvt Ltd (FSS) has launched IoT, AI, and ML-enabled ATMs in India. With these advancements, 60% of ATM issues can be resolved remotely without manual intervention. FSS aims to revitalize the ATM industry in India by optimizing operations, improving efficiency, increasing uptime, and enhancing customer experience. The company currently services 25,000 ATMs for private and public sector banks in the country.

Personal guarantors can face insolvency proceedings: Supreme Court

The Supreme Court of India has upheld the constitutional validity of various provisions of the Insolvency and Bankruptcy Code (IBC), including the provision that allows creditors to initiate insolvency proceedings against personal guarantors. The decision will enable creditors to take action against ousted promoters of companies that went through insolvency resolution. Data shows that as of September-end, there have been close to 2,300 cases filed against personal guarantors, with claims totaling Rs 1.6 lakh crore. However, only 282 cases have been admitted, resulting in creditors realizing just 5.2% of their claims.

Most banks not big on small personal loans

Bank chiefs in India have highlighted that stress in unsecured loans is originating from digital lending platforms that offer small-ticket personal loans, a segment in which most traditional banks are not involved. There are expectations that the Reserve Bank of India (RBI) may introduce stricter regulations for banks lending to this segment, which is seen as riskier. The RBI has been in talks with banks on this issue, and there is a possibility that the regulator may increase the risk weightage for these loans.

Stay updated with the latest news on Times of India. Don't miss daily games like Crossword, Sudoku, and Mini Crossword.