The country's leading public sector lender SBI will launch OTP or one time password- based cash withdrawal system beginning new year. This is in a bid to protect bank customers from fraudulent transactions at ATMs. In a tweet SBI said, "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 January, 2020 across all SBI ATMs". Further the new withdrawal facility based on OTP will apply to transactions more than Rs. 10000. So effective January 1, 2020, the new facility will be made active across the entire network of SBI ATMs.
How will this OTP-based cash withdrawal work?
While making cash withdrawal through the new OTP based facility, users on entering the amount they intend to withdraw will be taken to a screen asking for OTP. Thereon cardholders will need to enter the OTP received on their mobile number registered with the bank for successful processing of their cash withdrawal request.
OTP is a numeric string of characters that authenticates the user for one transaction.
Notably, the facility shall not be offered when making cash withdrawal using another bank's ATM as the feature is not designed in National Financial Switch (NFS).