(Image source from: moneycontrol.com)

The State Bank of India announced the launch of OTP based ATM withdrawal in order to minimize the number of unauthorized transactions that have been taking place at ATMs. The State Bank will avail its OTP based cash withdrawal system from January 1, 2020, between 8pm and 8 am. The transactions above Rs 10,000 will only be applicable with the OTP- based cash withdrawal system as said by SBI in a press release.

Another layer of security has been added with the introduction of OTP based withdrawals. "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," SBI said in a tweet.

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

One-time password (OTP) will be received by the customer on his/her mobile number which has been registered with the bank. OTP is a system generated numbers which authenticates the user for a single transaction.

No major change in the procedure of withdrawing money from the State Bank ATMs will be made. However, the facility will not be applicable for the transactions where in withdrawal of cash is done by a State Bank card holder from another bank’s ATM as National financial Switch (NFS) has not developed the functionality of withdrawal of cash through OTP.

The ATM screen opens up to the OTP screen when a card holder enters the amount they wished to withdraw and the customer has to enter the OTP that he/she has received on their mobile number which has been registered with the bank for getting the cash.

This facility prevents the withdrawal of money by unauthorized card holders and protects the card holders of State Bank.

By Shrithika Kushangi