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SBI customers must carry phone to ATM to withdraw over Rs 10,000; here's why

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

twitter-logo BusinessToday.In   New Delhi     Last Updated: December 30, 2019  | 12:26 IST
SBI customers must carry phone to ATM to withdraw over Rs 10,000; here's why
Customers can withdraw amounts above Rs 10,000 only via OTP-based system.

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.


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?

  1. Once the cardholder enters the amount they wish to withdraw, the ATM screen displays the OTP screen.
  2. Simultaneously, an OTP will be received on the customer's mobile number registered with the bank.
  3. The customer has to punch in the OTP received on his mobile number registered with the bank in this screen for getting the cash.
Till now, SBI customers could simply walk into the ATM and withdraw cash just by entering their PIN. The new rules will safeguard the customers against the risk of unauthorised transactions on account of skimmed/cloned cards, while withdrawing cash at SBI ATMs.

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).

Also read: SBI gives New Year gift to home, car buyers! Cuts external benchmark rate on loans by 25 bps

Also read: Alert SBI cardholders! Here are new rules for cash withdrawal from ATM

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