The State Bank of India is all set to introduce OTP-based ATM Withdrawal from January 1, 2020 with a view to minimise unauthorised transactions on ATMs. According to the SBI, the OTP-based cash withdrawal system will be active across all State Bank ATMs from 1st January 2020 between 8 AM to 8 PM. Customers can withdraw amounts above Rs 10,000 only via OTP-based system.
"Introducing the OTP-based cash withdrawal system to help protect you from unauthorised transactions at ATMs. This new safeguard system will be applicable from 1st Jan, 2020 across all SBI ATMs," SBI tweeted.
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. To know more: https://t.co/nIyw5dsYZq#SBI#ATM#Transactions#SafeWithdrawals#Cashpic.twitter.com/YHoDrl0DTe— State Bank of India (@TheOfficialSBI) December 26, 2019
What is an OTP?
The one-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction
How will it work?
- Once the cardholder enters the amount they wish to withdraw, the ATM screen displays the OTP screen.
- Simultaneously, an OTP will be received on the customer's mobile number registered with the bank.
- The customer has to punch in the OTP received on his mobile number registered with the bank in this screen for getting the cash.
It should be noted that this facility will not be applicable for transactions where a State Bank card holder withdraws cash from another bank's ATM, because this functionality has not been developed in National Financial Switch (NFS).