Country's largest public lender, State Bank of India (SBI) is all set to introduce One-time password (OTP) based cash withdrawal from January 1, 2020, across all SBI ATMs.
The move is taken to help SBI customers from unauthorised transactions at ATMs, according to SBI.
How OTP-based cash withdrawal system will work?
- If a SBI card holder will take out cash they wish to withdraw from a SBI ATM, an OTP will be sent to that person on its registered mobile number.
- Simultaneously, the ATM screen will also display the OTP screen.
- The customer has to input/punch the OTP received on his mobile number registered with the bank (SBI) in this screen for taking out the cash.
- The One-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction. The SBI announced the launch of OTP Based ATM Withdrawal for transactions above Rs 10,000 between 8 PM to 8 AM from January 1, 2020.
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).