DCB starts Aadhaar based ATM
DCB bank, for the first time in the country, has started an Aadhaar based ATM facility that does not require pin but asks for biometric details. According to the bank, a customer can transact both by swiping an ATM card or just by punching in the Aadhaar number in the ATM machine. For securing the identity, the fingerprint is used instead of pin number.
DCB Bank: A profile
DCB bank is a small-sized private sector scheduled commercial bank with 176 branches in 17 states and 2 union territories. Founded in 1930, the bank is headquartered in Mumbai, Maharashtra. Aga Khan Fund for Economic Development (AKFED) and Platinum Jubilee Investments Ltd. are the promoters of the bank. The bank offers products for individuals, small and medium businesses, rural enterprises, mid-corporates, etc.
What is Aadhaar?
Aadhaar is a 12 digit identification number that serves as a universal identity proof, valid all over India. It is free of cost and voluntary in nature. It contains biometric details such as fingerprint, iris scan, face image, etc. Issued by the Unique Identification Authority of India (UIDAI), it is touted as the world's largest biometric programme with close to 100 crore enrollment.
India has low penetration of ATMs
According to World Bank, penetration of ATMs in India stands at 18 per 1 lakh adults compared to 55 in China and 127 in Japan.
Biometric technologies used in ATMs
While DCB bank uses fingerprint for biometric verification, various other technologies are being used in the world for biometric authentication such as iris scan, face scan, palm scan, voice recognition, etc.
Aadhaar based transaction provides greater security
Transactions through Aadhaar help do away with the need to remember multiple pin numbers associated with multiple bank accounts. Further, the transactions are more secure as pin numbers can be stolen which is not possible with biometric identifications such as fingerprints. It would be cost effective for the bank as banks would not have to issue pin and later even the ATM cards.
Facility to be expanded after a month
According to Murli Natrajan, Managing Director and Chief Executive of DCB, the first of its kind ATM has been installed at its corporate office in Lower Parel area in Mumbai. The facility will be rolled out in 400 ATM network of the bank after a month of stabilization check. However, initially, the facility of using Aadhaar will be available to DCB customers only.
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