SBI to introduce OTP-based ATM night withdrawal from 1 January

December 28: State Bank of India (SBI) will launch an one-time password (OTP)-based ATM cash withdrawal facility from January 1, 2020, as an overnight service (8 p.m.-8 a.m.). The OTP-validated ATM transaction has been introduced to minimise the number of unauthorised transactions. The OTP-based withdrawal is applicable only to withdrawals from SBI ATMs. SBI’s OTP-based cash withdrawal facility will be applicable for transactions above Rs.10,000.

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. As per this process, once the cardholder enters the withdrawal amount, the ATM screen displays the OTP fields. The customer has to then enter the OTP received on the mobile number registered with the bank for getting the cash.

Introducing the OTP-based cash withdrawal system to help protect you from unauthorized transactions at ATMs. This new safeguard system will be applicable from 1st Jan, 2020 across all SBI ATMs. To know more: https://t.co/nIyw5dsYZq#SBI #ATM #Transactions #SafeWithdrawals #Cash pic.twitter.com/YHoDrl0DTe

— State Bank of India (@TheOfficialSBI) December 26, 2019

However, this facility will not be available for transactions where a State Bank card holder withdraws cash from another bank’s ATM, because this functionality has not been developed in the National Financial Switch (NFS). More banks are likely to follow suit as fraudulent withdrawals are on the rise using cloned ATM cards. Currently, banks alert and send SMSs to customers when they withdraw from ATMs.