New Delhi: In order to reinforce the ATM security system and provide more functioning time to its customers, lending major State Bank of India (SBI) has extended its OTP-based cash withdrawal facility. Also Read - Fraud Alert! SBI Warns Customers About Fake Alert E-Mails, Asks Users to Think Before They Click
SBI customers will now be able to make ATM withdrawal of Rs 10,000 and above after a One Time Password (OTP) verification throughout the day from September 18. Also Read - IRCTC, SBI launch Contactless Credit Card | All You Need to Know
The OTP-validated ATM transaction was introduced to minimize the number of unauthorized transactions, the State Bank of India had said. Also Read - Dinesh Khara Recommended as Next SBI Chairman, No Extension For Rajnish Kumar
With the introduction of its OTP-based cash withdrawal facility, SBI added another layer of security for cash withdrawals through its ATMs.
A One Time Password would be sent on the customer’s mobile number registered with the bank. This additional factor of authentication is meant to protect State Bank cardholders from unauthorized ATM cash withdrawals.
Once the cardholder enters the amount he/she wishes to withdraw, the ATM screen asks for the OTP received on his/her cellphone. As the customer enters the OTP on the ATM window, the transaction is completed.
This facility is only available for transactions, where a State Bank cardholder withdraws cash from an SBI ATM. It is because this functionality has not been developed in National Financial Switch (NFS), as per SBI. NFS is the largest interoperable ATM network in the country and it manages more than 95 per cent of the domestic interbank ATM transactions.
The SBI had introduced OTP based cash withdrawals of above Rs 10,000 between 8 pm to 8 am through its ATMs from January 1, 2020.