SBI Customers Alert!
If you have any SBI account and do cash transactions and withdrawal from that, then this is news for you. SBI cash withdrawals are going to be more secured from January 2020. From the first day of the new year i.e. 1 January 2020, SBI Bank changes rules on cash withdrawals over Rs 10,000 after 8 pm. From now onwards, if you are planning to take out cash from SBI ATM above 10,000 between 8 pm to 8 am, don’t forget to take your phone along. Yes, you heard right, keeping in view the incidents of ATM-related frauds, State bank of India (SBI) is all determined to launch a one-time password (OTP) based cash withdrawal system to protect users from unauthorized transactions at ATM’s. This facility has come into effect across all SBI ATM’s from 1 January 2020. The country’s largest money lender informed it’s customers about the new ATM withdrawal facility through a tweet. The bank tweeted about the rule changes saying, “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 January 2020 across all SBI ATMs”.
Till now, SBl cardholders could simply walk into the ATM and withdraw cash just by entering their PIN. But now, while withdrawing cash, you will receive an OTP on your mobile number registered with the bank. Hence, make sure that you carry your mobile phone along with you while making transactions from the ATM.
With ATM-related frauds on the rise, banks are introducing ways to protect their customers from tricksters. The country’s largest public-sector lender, the State Bank of India (SBI), via a tweet on December 26, said that it will introduce a one-time password (OTP)-based cash withdrawal system for its ATMs. The bank said that this facility will be available for transactions above Rs 10,000 between 8 pm and 8 am. This is a major step taken by SBI to safeguard you from unauthorized transactions at ATM’s.
Here is how to OTP based cash withdrawal will work:
An OTP will be sent to you on your registered mobile number with the bank at the time of initiating cash the cash withdrawal process at ATM.
The OTP is a system-generated numeric string of characters that authenticate the users for a single transaction.
This will protect SBI cardholders from unauthorized ATM cash withdrawals.
In the process of making cash withdrawals, once the SBI cardholder enters the amount he/she wish to withdraw, the ATM screen will display the OTP screen. The SBI cardholder has to enter the OTP received on his/her mobile number registered with the bank on this screen for withdrawing the cash. Banks’ Facebook post stated, “This will safeguard the customers against the risk of unauthorized transactions on account of skimmed /cloned cards while withdrawing cash at SBI ATMs,”.
Do keep in mind that you cannot use another bank’s card to avail of this facility at an SBI ATM ” because this functionality has not been developed in National Financial Switch (NFS).
Quick go through about SBI’s OTP-based cash withdrawal system
These services will be active across all SBI ATMs with complete effect from January 1, 2020, from 8 pm till 8 am.
Users will receive OTP on your registered mobile number only when you withdraw cash over and above Rs 10,000.
The facility will not require any major change in the present process to withdraw cash from SBI ATMs.This facility will not be applicable for transactions when an SBI cardholder withdraws cash from another bank’s ATM.
SBI OTP-based ATM transaction not applicable at other bank ATMs?
This secured facility will not be applicable for transactions from another bank’s ATM, because this functionality has not been developed in National Financial Switch (NFS). NFS is India’s largest interoperable ATM network. More than 95% of the domestic interbank ATM transactions are managed by NFS.
Are other banks going to opt it:
In the coming days, more banks are likely to follow this OTP based system as fraudulent ATM cash withdrawals are on the high rise. As of now, the banks alert customers through SMSes whenever money is debited from their account. So this is a considerable step taken by the SBI for much-secured withdrawals.