BB takes the move to tighten security

A client uses ATM of a private commercial bank in Dhaka last week. Bangladesh Bank is going to replace existing four-digit security PIN code used to settle transactions through automated teller machines with fingerprint with a target to strengthen financial security

Bangladesh Bank is going to replace existing four-digit security PIN code used to settle transactions through automated teller machines with fingerprint with a target to strengthen financial security. A BB official told New Age on Wednesday that the central bank had taken the initiative to strengthen financial security as well as to popularise the country’s card-based payment system among the rural people. Such type of security measures is globally known as biometric solution and a number of developed countries have already introduced the system, he said. The biometric solution will also decrease the existing fraudulent acts through hacking the passwords, the official said. The BB issued a letter to managing directors and chief executive officers of all banks on February 18, 2015 asking them to send their opinion regarding the fingerprint introduction. The banks in their replies said that they would require one or two years to introduce the system as they would have to prepare fingerprint database of the clients and set up scanners at ATM booths. Besides, the banks will have to appoint vendor to set up the biometric solution, according to the banks’ letter. The BB will issue another letter to the banks shortly to take preparation in this regard, the official said. When a customer inserts or swipes his or her card in a biometric-enabled ATM, he or she is prompted to set his finger in the fingerprint scanner. The fingerprints of the clients are scanned into a special computer with the ATM booths after which the scanned fingerprints are stored in a central server of the banks. A transaction along with a customer’s biometric information is passed on to the switch, which verifies the fingerprint with the server, and if successful, requests the banking application to authorise the transaction. Based on the result, the switch instructs the ATM to complete the transaction. According to the central bank data, the banks issued 72,85,805 debit cards and 5,77,864 credit cards and 1,02,787 prepaid cards as of September 30, 2014 while they set up 6,035 ATM booths and 26,140 POS terminals. The BB official said that the marginal people of the rural area were now reluctant to use the ATMs due to their incapability of using the PIN code accurately. The central bank has recently taken a number initiative to popularise the country’s card-based transaction through the ATMs and POS machines. As part of the move, the BB is going to give permission the private companies to set up ATM booth in rural areas and to put a cap on annual fee of debit cards offered by the banks. The card-based payment system will get tempo when the marginal people of the rural areas will not be required to use PIN code, the BB official said.