Double OTP Rule for Bank Transactions: Senior Citizens to Get Extra Layer of Protection Against Fraud

New Delhi: Amidst the increasing cases of cyber fraud and digital arrest in the country, major changes have started in the banking system for the safety of senior citizens. Now, to transfer money online in some banks, not just one but two OTPs will be required. Under the new system, the first OTP will come on the mobile number of the account holder, while the second OTP will be sent to the number of a trusted person, whom the customer will select in advance and register with the bank. The transaction will be completed only after both OTPs are entered correctly.

At present, this system has been started as a pilot project in Haryana and it is being considered a big step towards protecting senior citizens from cyber fraud.

How will the new double OTP system work?

Under the new system, when a senior citizen does an online transaction from his account, two separate OTPs will be generated by the bank. As usual, the first OTP will come on the mobile number of the account holder, while the second OTP will be sent to the mobile number of that “Trusted Contact” i.e. trusted family member or relative. The bank will transfer the money only when both OTPs are confirmed. If the second OTP is not entered the transaction will automatically stop. Officials believe that this will make it difficult for cyber criminals to target the elderly alone.

For whom will this facility be applicable?

This facility has currently been launched on a voluntary basis for senior citizens aged 60 years and above. This means that if customers wish, they can link the mobile number of a trusted person to their bank account. According to reports, HDFC Bank has started implementing this system in around 50 branches in Gurugram, Faridabad, Panchkula and some other districts. If this experiment is successful then in the coming time it can be implemented in other parts of the country also.

Will it help in stopping digital arrest and cyber fraud?

Cyber experts say that in recent times, senior citizens have been targeted the most in digital arrests, fake police calls and investment scams. In many cases, fraudsters scare the elderly and obtain OTP from them and empty their accounts. In such a situation, the double OTP system will act as an additional security layer. Even if a person comes under pressure and shares his OTP, money will not be transferred without another OTP. This will also give the family members an opportunity to stop suspicious transactions.

Did Haryana Police and banks prepare the model together?

This initiative has been prepared jointly by Haryana Police and banking officials. According to reports, work on this scheme was started on the initiative of Haryana DGP Ajay Singhal. IPS officer Upasana has also called this system an important step for the safety of senior citizens. Banking officials say that the system is being strengthened through technical changes so that the incidents of online fraud can be reduced.

Can the entire digital banking system change in the future?

Experts believe that in the coming times, more stringent steps can be taken regarding banking security. Instead of just SMS OTP, work is also underway on options like biometric verification, app approval and multi-layer security. Currently, the double OTP model is being seen as a “human firewall” for senior citizens, which can weaken the tactics of cyber criminals.