State Bank of India (SBI) customers must be set to understand some changes in the ATM cash withdrawal system. The public lender uses one-time password (OTP) to avoid unauthorised transactions at ATMs.
Let us tell you that the OTP is needed only for withdrawal transactions of Rs 10,000 or more from SBI ATM’s. Customers who want to withdraw amount over Rs 10,000 via ATMs will have to enter an OTP issued to their registered mobile number along with their debit card PIN.
This safety facility has remained in operation since January 1, 2020. The bank has again alerted its customers about the benefit of the OTP-based withdrawal system.
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“Our OTP-based cash withdrawal system for SBI ATM transactions is a fraud-prevention vaccine. Our first aim will always be to keep you safe from fraud”, the bank tweeted.
Our OTP based cash withdrawal system for transactions at SBI ATMs is vaccination against fraudsters. Protecting you from frauds will always be our topmost priority.#ATM #OTP #SafeWithSBI #TransactSafely #SBIATM #Withdrawal #AmritMahotsav #AzadiKaAmritMahotsavWithSBI pic.twitter.com/g5P50lFhLw
— State Bank of India (@TheOfficialSBI) April 9, 2022
The OTP is a four-digit number which is used to verify a user’s identity for a single transaction.
Here’s how the OTP based cash withdrawal system works
Anyone who withdraws Rs 10,000 or more from an SBI ATM will require an OTP.
The OTP will be sent by SBI on your registered number.
Once you enter the amount of withdrawal needed, you will see the OTP screen on the ATM screen.
To withdraw the desired cash amount, you must enter the OTP received on your bank-registered mobile number.
Notably, the Reserve Bank of India (RBI) has asked all banks to start cardless cash withdrawal via ATM’s to avoid fraud. As mentioned by the RBI, “It is now suggested to use UPI to enable cardless cash withdrawals across all banks and ATM networks.”
According to RBI Governor Shaktikanta Das, “The elimination of the requirement for a real card for such transactions will help avoid frauds in the form of card skimming, card cloning, and other forms of fraud”.
