With the rise in ATM-related frauds, India’s largest public-sector lender, State Bank of India (SBI) has introduced a one-time password (OTP)-based cash withdrawal system for its ATMs to protect its customers from the fraudster. From 1st January 2020, SBI’s OTP-based ATM cash withdrawal is applicable across all SBI ATMs. According to a tweet, India’s largest lender, SBI already informed it’s customers about the new ATM withdrawal facility.
SBI said that this facility is available for transactions above ₹10,000 between 8 pm and 8 am. So, from now on, if you are going to withdraw cash from SBI ATM after 8 pm, take your phone with you, as for OTP-based withdrawal, you will receive the one-time password on your mobile registered with the bank. “The One-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction. This additional factor of authentication will protect SBI cardholders from unauthorized ATM cash withdrawals,” SBI said.
How SBI OTP based cash withdrawal system will work?
- If an SBI cardholder will want to withdraw cash above 10,000 from an SBI ATM they wish to, an OTP will be sent to that person’s mobile number registered with the bank.
- At the same time, the ATM screen will also display the OTP screen.
- The customer has to input the OTP received on the mobile number which is registered with the SBI in this ATM screen for cash withdrawing.
“This will safeguard the customers against the risk of unauthorized transactions on account of skimmed /cloned cards while withdrawing cash at SBI ATMs,” stated by the SBI’s Facebook post.
SBI OTP based cash withdrawal is not applicable for other bank’s ATMs
Keep in mind that you cannot use another bank’s card to avail of this facility at an SBI ATM as this feature has not been developed in National Financial Switch (NFS).