Upgrade software at ATMs by June 2019 or face penalty, RBI tells banks

Upgrade software at ATMs by June 2019 or face penalty, RBI tells banks

With banks failing to upgrade software in automated teller machines (ATM) despite repeated reminders, the Reserve Bank of India (RBI) has now directed the banks to complete the process in a phased manner latest by June 2019.

‘Slow progress’

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“The slow progress on the part of the banks in addressing these issues has been viewed seriously by the RBI,” the central bank said in a notification to banks.

The banking regulator pointed out that many ATMs were still running on Windows XP and other unsupported software. RBI had asked banks to upgrade the ATMs first in March last year and then in November. According to banking industry sources, there could be 30% of the present 2.2 lakh ATMs that still use old software.

RBI said the vulnerability arising from the ATMs operating on unsupported version of operating system and non-implementation of other security measures, could potentially affect the interests of customers and the banks’ image.

Banks have been asked to upgrade 25% of the ATMs by September 2018, 50% by December 2018, 75% by March 2019 and all by June 2019. Security measures should be implemented by August 2018 and anti-skimming and white-listing solutions by March 2019.

RBI warned banks of penalty if they failed to adhere to the deadline. “It may be noted that any deficiency in timely and effective compliance with the instructions contained in this circular may invite appropriate supervisory enforcement action under applicable provisions of the Banking Regulation Act, 1949 and/or Payment and Settlement Systems Act, 2007,” RBI said.

 

source by thehindu

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