In order to minimise the number of unauthorised transactions happening on ATMs, the 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, the State Bank ATMs have added another layer of security for cash withdrawals.
The customers must note that the OTP will be received on the customer’s mobile number registered with the Bank. This additional factor of authentication will protect State Bank card holders from unauthorized ATM cash withdrawals.
The One-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction.
According to the note shared by the bank, the OTP Based Cash Withdrawal System shall be active across all State Bank ATMs from 1st January 2020 between 8 PM to 8 AM. The facility will not require any major change in the present process to withdraw cash from State Bank ATMs. 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 / 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 / cloned cards, while withdrawing cash at State Bank ATMs.