Aadhaar Enabled Cardless ATM: A Few Things To Know

DCB Bank on Monday launched its cardless ATM in Bengaluru, which will enable you to do financial transactions based on Aadhaar number and Aadhaar fingerprint (biometric) replacing the regular method of using debit card and PIN to dispense cash.

Earlier, the project was placed on pilot site at DCB Bank at Mumbai followed by Odisha and Punjab.

DCB Bank Chairman Nasser Munjee said, "Bengaluru is an important centre for us.... These ATMs are testimony to our commitment to invest in customer facing technology and promote a new way of banking," according to a Bank release.

Aadhaar card has a 12 digit unique identification number which stores demographic and biometric information of the resident with photograph. Each Aadhaar number issued will be unique to an individual and will remain valid for lifetime.

How Does Aadhaar Enabled ATM Work?

There is no need for ATM/Debit Card or the hassle of remembering PIN.

Customers should input their 12 digit Aadhaar number and place their finger tip on the biometric reader.

Once the ATM verifies the details the transaction is completed in no time.

Customers can also choose to dip their ATM/Debit Card in the slot instead of inputting the 12 digit Aadhaar number and simply place their finger tip on the biometric reader. It works without entering the PIN.

To avail this facility, customers need to link their Aadhaar number with their DCB Bank account number. At present only DCB Bank customers will be able to use this facility.

Most of the existing ATMs do not have inbuilt fingerprint biometric reader which needs to be installed and tested. However, all new ATM installations already have pre-installed fingerprint biometric reader, the bank said in the press release.

Advantages of the Aadhaar Enabled Cardless ATM

One of the advantages of this form of transacting would be that there would be no need to carry your ATM Card. This would prevent theft of the card and also loss. The mechanism is pretty safe, considering that it is based on biometrics, which cannot be duplicated.

However, there are disadvantages as well, as you cannot ask a friend or relative to withdraw cash on your behalf. The other disadvantage maybe that the system is not yet fully tried and tested, so initially there maybe some teething troubles. Of course, there have been no reports as of now, but, it could be a possibility.

However, one must appreciate that DCB Bank has evolved a very creative way to use the Aadhaar Card. Now, there would be a need to expand these kind of ATMs or else the purpose would not be solved.

Goodreturns.in