The State Bank of India (SBI), one of the most popular and preferred banks in India, has launched a new OTP-based ATM cash withdrawal system for transactions above Rs 10,000 between 8 PM and 8 AM. SBI has taken the initiative in order to minimize the number of unauthorized transactions happening on ATMs.
Therefore, whenever a consumer attempts to withdraw cash from an SBI ATM, a One-time password (OTP) – a system-generated numeric string of characters that authenticates the user for a single transaction – will be created and received on the customer’s mobile number registered with the Bank. This additional factor of authentication will protect State Bank card holders from unauthorized ATM cash withdrawals, says a statement from SBI.
How to Use the SBI OTP-Based ATM Cash Withdrawal
The SBI Bank’s OTP based cash withdrawal system will be implemented across all state bank ATMs and consumers of the bank will not need to make any major changes in the present process to withdraw cash from State Bank ATMs. The following steps will need to be followed for cash withdrawals:
- The cardholder needs to enter his card into the SBI ATM machine.
- Once the cardholder enters the amount they wish to withdraw, the ATM screen displays the OTP screen.
- OTP will be received on the customer’s mobile number registered with the Bank.
- The customer has to input or punch the OTP received on his mobile number registered with the Bank in this screen for getting the cash.
Other Things You Need to Know About SBI OTP-Based ATM Cash Withdrawal
Customers need to also be aware that 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).
However, this facility will safeguard the customers against the risk of unauthorized transactions on account of skimmed or cloned cards, while withdrawing cash at State Bank ATMs. Furthermore, to a customer who questioned the bank on whether he would have to get a new ATM card to avail this feature, the official SBI account replied saying “You need to get a new ATM card If your card is a magstripe card, as it will get blocked due to RBI directives to discontinue the operation of magstripe cards. If your card is an EMV Chip card, please get in touch with your branch and ascertain that.”