📷 Image: Wikimedia Commons / Gyanendra_Singh_Chau…
Technology
Madhya Pradesh High Court urges RBI to tighten ATM withdrawals from fraud‑linked accounts
✍️ Amar Ujala · Jabalpur
🗓 08 Sep 2026, 10:41 PM
👁 39
The Madhya Pradesh High Court expressed concern over cyber‑fraud money being withdrawn from suspect accounts and advised the RBI to consider biometric and facial‑recognition checks for large or doubtful withdrawals.
The High Court in Jabalpur, Madhya Pradesh, raised an alarm after learning that significant sums linked to cyber‑fraud cases were being withdrawn from bank accounts via ATMs. The court highlighted the vulnerability of the current authentication process, which it says can be exploited by fraudsters to siphon money from victims' accounts.
In a written order, the bench recommended that the Reserve Bank of India review its withdrawal limits and introduce stronger verification mechanisms for transactions deemed large or suspicious. Specifically, the court suggested the use of biometric verification, facial‑recognition technology, and additional layers of customer authentication at ATMs.
The recommendation comes amid a broader national focus on tightening digital payment security after a series of reported cyber‑theft incidents across the country. The RBI has previously issued guidelines on two‑factor authentication, but the court’s advice pushes for more advanced, identity‑based controls to curb misuse.
If implemented, the suggested measures could reshape how banks handle ATM withdrawals, potentially reducing the ease with which fraudsters move illicit funds. The RBI has not yet issued a formal response, but the court’s observations are expected to influence forthcoming regulatory revisions.
In a written order, the bench recommended that the Reserve Bank of India review its withdrawal limits and introduce stronger verification mechanisms for transactions deemed large or suspicious. Specifically, the court suggested the use of biometric verification, facial‑recognition technology, and additional layers of customer authentication at ATMs.
The recommendation comes amid a broader national focus on tightening digital payment security after a series of reported cyber‑theft incidents across the country. The RBI has previously issued guidelines on two‑factor authentication, but the court’s advice pushes for more advanced, identity‑based controls to curb misuse.
If implemented, the suggested measures could reshape how banks handle ATM withdrawals, potentially reducing the ease with which fraudsters move illicit funds. The RBI has not yet issued a formal response, but the court’s observations are expected to influence forthcoming regulatory revisions.