India's biggest lender State Bank of India (SBI) has announced extension of time for the OTP-based cash withdrawal from ATMs. This will be effective from September 18, 2020.
SBI customers will now be able to make ATM withdrawal above Rs 10,000 after an OTP verification throughout the day. OTP would be received on the customer's mobile number registered with the bank. This additional factor of authentication protects State Bank card holders from unauthorised ATM cash withdrawals.
The bank had allowed this facility to customers during 8 PM to 8 AM in January.
How does OTP-validated ATM transaction work?
According to SBI, the OTP-validated ATM transaction was introduced to minimise the number of unauthorised transactions. With the introduction of its OTP-based cash withdrawal facility, State Bank added another layer of security for cash withdrawals through its ATMs service.
This facility will not be applicable for transactions, where a State Bank card holder withdraws cash from another bank's ATM.
Once the cardholder enters the amount he/she wishes to withdraw, the ATM screen displays the OTP window.
The customer has to enter the OTP received on the registered mobile number to complete the transaction.
