India's biggest bank, State Bank of India (SBI) has declared extension of time for the OTP-based cash withdrawal from all SBI ATMs in the country. It will be effective from September 18, 2020.
Under it, SBI customers will now be able to make ATM withdrawal of Rs 10,000 and above after an OTP verification throughout the day across all SBI ATMs in the country. SBI customers are allowed to avail this facility during 8 pm – 8 am from 1 January, 2020.
Benefits of OTP-validated ATM transaction:
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The OTP-validated ATM transaction was started to minimise the number of unauthorised transactions, said SBI.
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By this, another layer of security for cash withdrawals through its ATMs service is added for SBI customers.
How does SBI OTP-based cash withdrawal facility works?
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As soon as the cardholder enters the amount that he or she wishes to withdraw, the ATM screen displays the OTP window.
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The customer now has to enter the OTP received on the registered mobile number so as to complete the transaction.
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It is to be noted that the OTP would be received on the customer's mobile number which is registered with the bank. This authentication protects State Bank card holders from unauthorized ATM cash withdrawals
However, it will not be applicable for transactions, where a SBI card holder withdraws cash from another bank's ATM. This is because this functionality has not been developed in National Financial Switch (NFS), according to SBI. NFS is the largest interoperable network of ATM in the country. It manages over 95 per cent of the domestic interbank ATM transactions.
