SBI makes OTP compulsory for ATM withdrawals over Rs 10K

New Delhi, July 25: In an attempt to give an extra layer of protection against fraudulent transactions, the State Bank of India (SBI) has come up with an OTP-based cash withdrawal service for its customers.

It means the next time you try to withdraw Rs 10,000 or more from the ATM you will receive an OTP which you need to enter to withdraw your money from the ATM machine. Thus making the customers mandatorily carry their mobiles to complete the transaction.

A one-time password (OTP), also known as a one-time PIN, one-time authorization code (OTAC) or dynamic password, is a password that is valid for only one login session or transaction, on a computer system or other digital device.

Reports say that other banks might also follow suit.

The leading lender announced the launch of OTP Based ATM Withdrawal for transactions above Rs 10,000 in 2019 between 8 pm to 8 am and it came into 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. The One-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction. This additional factor of authentication will protect State Bank card holders from unauthorized ATM cash withdrawals," the company had said in a statement.

How to Withdraw Money from ATM?

• Carry your debit card with mobile to withdraw money
• Insert the ATM Card in the machine in the given slot
• Enter your pin along with the amount that you want to withdraw.
• If withdrawal amount is over Rs 10,000, you will receive an OTP on you registered number
• Enter the OTP on the ATM screen
• Transaction completes once you enter the OTP.