Important news for SBI cardholders! Bank introduces OTP-based cash withdrawal system. Get details here
To minimise the number of unauthorized transactions happening on ATMs, the State Bank of India has decided to introduce the OTP-based cash withdrawal system.
In recent times, many cases of unauthorized transactions on account of skimmed/cloned cards were registered that led to fraud. To minimise the number of unauthorized transactions happening on ATMs, the State Bank of India has decided to introduce the OTP-based cash withdrawal system. The bank will launch OTP Based ATM Withdrawal for transactions system from January 1, 2020.
According to the bank, customers can now easily withdraw money above ₹ 10,000/- between 8 PM to 8 AM. The bank on its official Twitter handle posted a tweet, "Introducing the OTP-based cash withdrawal system to help protect you from unauthorized transactions at ATMs. This new safeguard system will be applicable from 1st Jan 2020 across all SBI ATMs."
SBI Bank has over 40 crore customers in the country and with such a huge customer base, fraudsters and hackers easily target ATM cardholders. As SBI credit cards are quite popular, its customers should know how to be safe from such fraudsters.
With this move, the bank have added another layer of security for cash withdrawals. To withdraw cash from their SBI accounts, the customers will first receive an OTP on their registered mobile number. Once the cardholder enters the amount they wish to withdraw, the ATM screen displays the OTP screen.
Then the customer will have to input/punch the OTP received on his registered mobile number on the screen for getting the cash.
The One-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction. This process will protect State Bank cardholders from unauthorized ATM cash withdrawals.
It is to be noted that the customers will receive the OTP only through the mobile number that is registered with the bank.
The system will not require any major change in the present process to withdraw cash from State Bank ATMs, but it just adds one more step to make the transaction more safe and secure.
However, this facility will not be applicable for transactions, where a State Bank cardholder withdraws cash from another bank's ATM, because this functionality has not been developed in National Financial Switch (NFS).
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