Keeping in view the incidents of ATM-related frauds on the rise, State Bank of India (SBI) has introduced a one-time password (OTP)-based cash withdrawal system for its ATMs. SBI’s OTP-based ATM cash withdrawal facility has come into system with effect from today, 1st January 2020. Country’s largest lender informed it’s customers about the new ATM withdrawal facility through a tweet. The bank said that this facility will be available for transactions above ₹10,000 between 8 pm and 8 am. From now on, if you are planning to take out cash from SBI ATM after 8 in the night, don’t forget to take your phone along, as you won’t be able to do so without your mobile. As for OTP-based withdrawal, you will require the one-time password that will come on your mobile registered with the bank.
In order to protect you from unauthorized transactions at ATMs, we are introducing an OTP based cash withdrawal system. This new safeguard system will be applicable from 1st Jan, 2020 across all SBI ATMs from 8 PM to 8 AM. pic.twitter.com/zvsy1aUTUE
— State Bank of India (@TheOfficialSBI)
How will SBI customer withdraw cash through OTP
In this process, once the cardholder enters the amount they wish to withdraw, the ATM screen displays the OTP screen. SBI customers will have to input / punch the OTP received on his mobile number registered with the bank in this screen for getting the cash.
The facility will not require any major change in the present process to withdraw cash from SBI ATMs.
SBI OTP-based ATM transaction not applicable at other bank ATMs
This facility will not be applicable for transactions from another bank’s ATM, because this functionality has not been developed in National Financial Switch (NFS). NFS is the largest interoperable ATM network in the country and it manages more than 95% of the domestic interbank ATM transactions.
This additional factor of authentication will protect SBI customers from unauthorized ATM cash withdrawals.
Till now, SBI customers could simply walk into the ATM and withdraw cash just by entering their PIN.
More banks are likely to follow suit as fraudlent ATM cash withdrawals are on the rise. As of now, the banks alert customers through SMSes whenever money is debited from their account.
Source: livemint
