These Changes Come Into Effect For SBI Customers From January 1, 2020

With the start of the new year 2020, customers of leading state-run lender State Bank of India need to know few of the rules that have changed. To provide better customer experience and service and also to prevent fraudulent incidences, SBI has come up with some of the new facilities in the recent time. So here is what changes from today for SBI customers:

These Changes Come Into Effect For SBI Customers From January 1, 2020

1. Magnetic stripe cards become obsolete and new EMV chip-based cards to be only valid: To render ATM/debit cards more secure, SBI has made the earlier issued magnetic stripe based ATM cum debit cards invalid with effect from January 1, 2020. So, only new EMV chip based cards will be working. In a tweet SBI has asked its customers to upgrade their ATM cards to the ones bearing EMV chip. "Apply now to change your Magnetic Stripe Debit Cards to the more secure EMV Chip and PIN-based SBI Debit card at your home branch by 31st December 2019. Safeguard yourself with guaranteed authenticity, greater security for online payments and added security against fraud," said the bank in a tweet.

2. OTP based cash withdrawal facility: For cash withdrawal over Rs. 10,000 from SBI ATM, SBI cardholders would be sent an OTP to their mobile number registered with the bank. This numeric string they would need to key in after entering the amount they intend to withdraw. So, without OTP verification for withdrawals over Rs. 10,000, customers will not be able to withdraw money from SBI ATM. On the new facility SBI said, "With the introduction of its OTP-based cash withdrawal facility, State Bank ATMs have added another layer of security for cash withdrawals. OTP will be received on the customer's mobile number registered with the bank".

3. SBI home loans become cheaper after bank slashes external benchmarking rate: SBI has reduced its external benchmark based rate (EBR) by 25 basis points to 7.80% per annum from the earlier 8.05%. The new rates come into force from today. As a result, interest rate for home loan borrowers and other MSME loans linked to EBR go down by 25 basis points. 1 basis point is one-hundredth of a percentage point. For new SBI home loan borrowers, interest rate will start from 7.9% per annum as against 8.15% previously.

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