New Delhi: State Bank of India (SBI) has brought a big change to the ATM withdrawal process to make banking more convenient and safer. As part of the change, India’s largest public-sector lender has brought OTP-based ATM cash withdrawal that brings in place an additional factor of authentication.
The new safety feature protects SBI cardholders from unauthorised ATM cash withdrawals that have increased in the recent past few years. SBI took to Twitter to announce the new ATM cash withdrawal process.
“Our OTP based cash withdrawal system for transactions at SBI ATMs is vaccination against fraudsters. Protecting you from frauds will always be our topmost priority,” said SBI in a tweet.
Our OTP based cash withdrawal system for transactions at SBI ATMs is vaccination against fraudsters. Protecting you from frauds will always be our topmost priority.#SBI #StateBankOfIndia #ATM #OTP #SafeWithSBI #TransactSafely #SBIATM #Withdrawal pic.twitter.com/uCbkltrP8T
— State Bank of India (@TheOfficialSBI) October 24, 2021
SBI OTP ATM transaction
SBI had first introduced the OTP-validated ATM transaction in 2020 with the aim to minimise fraudulent transactions that had become a reason for worry for the state-backed lender.
In the new process, customers receive OTP on their mobile number registered with the bank. The ATM will only withdraw cash if the customer enters the correct OTP required to authenticate the transaction.
The process is similar to online shopping wherein customers need to enter bank OTPs to process the transaction. The OTP brings in the additional layer of security that is required to choke unauthorised transactions.
However, as of now, SBI customers won’t be able to use the facility on another bank’s ATM because the functionality has not been developed in a corporation with the National Financial Switch (NFS) – the largest interoperable ATM network in the country. Also Read: Union Bank slashes home loan interest rate to all-time low of 6.40%, check SBI, LIC HFL’s offerings
At present, NFS manages more than 95 per cent of the domestic interbank ATM transactions. However, with the rising number of unauthorised transactions, other banks could also add an OTP-based verification process for withdrawing cash, making the ATM withdrawal process safer than ever. Also Read: WhatsApp history can be transferred from an iPhone to any phone with Android 12