To protect its customers from fraudulent ATM transactions, the State Bank of India (SBI) has introduced a one-time password (OTP) based cash withdrawal service.
It is believed that many banks would soon convert to this method for ATM cash withdrawals.
This will provide an additional layer of security against fraud cases. Customers must provide the OTP to complete the transaction when withdrawing cash from an ATM, according to the SBI.
The OTP, a four-digit number created by the system, will be delivered to the customer's registered mobile number. The cash withdrawal will be authenticated using the OTP, which is only valid for one transaction.
On January 1, 2020, the largest lender in the country began offering cash withdrawal services based on OTP. The SBI has occasionally used social media and other platforms to raise awareness about ATM fraud. All of its clients have been encouraged to use the service.
Customers using SBI ATMs to withdraw 10,000 or more in a single transaction will require the OTP to complete the transaction.
However, SBI consumers are questioning this method of cash withdrawal from ATMs. Dr. Nagendra Kumar Singh, school director, Gram Panchayat Sadasya, and a resident of Siwan, Bihar said, "This new method of withdrawing cash is effective only for the urban population. Farmers and rural people who are not literate will have a hard time adjusting to this system. What happens if people forget their phones at home? SBI should think on these points before going ahead with this method of cash withdrawal."
How to withdraw cash using OTP:
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When making a cash withdrawal at SBI ATM, you must have both your debit card and phone on you.
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You will be asked for the OTP after inserting your debit card and entering the ATM PIN and the amount of the withdrawal.
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You will receive the OTP through SMS on your registered mobile number.
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Enter the OTP received on your phone on the ATM screen.
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As soon as you input the correct OTP, the transaction will be finished.
