SBI starts OTP-based ATM transactions
Mumbai: With a view to minimise the number of unauthorised transactions happening on ATMs, State Bank of India announced the launch of OTP-based ATM Withdrawal for transactions above Rs 10,000 between 8 PM to 8 AM. With the introduction of its OTP-based cash withdrawal facility, State Bank's ATMs have added another layer of security for cash withdrawals.
OTP will be received on the customer's mobile number registered with the Bank. The One-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction. This additional factor of authentication will protect State Bank card holders from unauthorised ATM cash withdrawals.
The OTP-based cash withdrawal system will be active across all State Bank's ATMs with the effect from January 1, 2020. The facility will not require any major change in the present process to withdraw cash. However, 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).
In this process, once the cardholder enters the amount they wish to withdraw, the ATM screen displays the OTP screen.
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.
This will safeguard the customers against the risk of unauthorised transactions on account of skimmed or cloned cards, while withdrawing cash at State Bank's ATMs.