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HC declines to entertain plea to replace ATM cards with more secure ones

Press Trust of India  |  New Delhi 

The Delhi High Court on Tuesday declined to entertain a PIL seeking replacement of ATM cards with purportedly more secure dynamic data authentication (DDA) cards, saying it was a policy decision and courts will not interfere in it.

A bench of Chief Justice D N Patel and Justice C Hari Shankar asked the petitioner NGO to either withdraw the plea or face dismissal with costs.

It told the NGO, Anti Corruption Council of India, that it can implement use of DDA cards by either starting its own bank or becoming a customer of a bank which offers such cards.

The bench said it cannot order all banks in the country to switch to DDA cards just because the petitioner NGO feels they are more secure.

"You start a bank and do it," it said.

Advocate Farman Ali Magray, appearing for the Centre, and the counsel for RBI opposed the plea, saying it was a policy decision.

Taking note of the court's view, the NGO withdrew its petition.

The NGO, in its plea, had contended that incorporation of latest encryption methods like DDA cards could help prevent ATM frauds like card skimming or cloning.

According to the petition, data revealed by RBI in July indicated that ATM frauds in 2018-19 led to victims losing Rs 4.8 crore in Maharashtra and Rs 2.9 crore in Delhi.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 05 2019. 13:20 IST