FARAZ: It could be very irritating for some consumers if the bank would reject their 2nd succesfull transaction from the same ATM within 24 hrs.

FYI: ATM Pins are stored no where, HSM (Hardware Security Module) a device with some algorithms generates and validates all these pins; and this device is operated in a centralised environment (usually not bank wise)

My suggestion is to let the State Bank outsorce ATM security as a project to any specific vigilance company who would be responsible to dispath the security team right after the incident(though it doesn’t seems to be very practical as these security companies have no support from our law enforcing agencies).

OK. another option just clicked my mind. Banks should provide each ATM consumer a security linked account (This is same as linking more than one account on a single ATM card) and SET it to default with minimum balance say 500 or 1000. In case of emergency user can get the money from it. what say ?

One ordinary example is to reject 2nd successful transaction made on same ATM during 24 hours period.

In this way, customer may not save his money completely, but it will be lowered down.