Guwahati: In order to limit the number of unauthorised transactions taking place through ATMs, State Bank of India (SBI) has announced the launch of an One-time password (OTP)-based ATM withdrawal system for transactions above Rs 10,000 between 8 pm and 8 am. The new system will become effective across all SBI ATMs with effect from January 1, 2020.
“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,” SBI posted on their Facebook page.
OTP is a system-generated series of numbers that authenticates the customer for a single transaction. This extra factor of validation will shield SBI cardholders from unauthorised ATM cash withdrawals.
The new cash withdrawal system will be available across all State Bank ATMs with effect from January 1, 2020 between 8 pm and 8 am. The facility won’t require any significant change in the present procedure to withdraw cash from SBI ATMs. However, this facility won’t be available for transactions done from another bank’s ATM, since this functionality has not been developed in National Financial Switch (NFS).
In this procedure, when the cardholder enters the sum they wish to withdraw, the ATM screen shows the OTP screen. The cardholder needs to then type/punch the OTP received on his/her registered mobile number on the screen to complete the transaction. This will protect the clients against the danger of unauthorised transactions by virtue of skimmed/cloned cards while withdrawing cash at SBI ATMs.