SBI to stop ATM money withdrawal without OTP from January 1st; Here is why

SBI alert: With an aim to minimize the number of unauthorized transactions happening on ATMs, State Bank of India (SBI) announced the launch of OTP-based ATM Withdrawal system for transactions above Rs 10,000 between 8 PM to 8 AM. With the introduction of its OTP Based Cash Withdrawal Facility, SBI ATMs have added another layer of security for cash withdrawals. OTP will be received on the customer’s mobile number registered with the Bank. The One-time password (OTP) is a system-generated numeric string of characters that authenticates the user for a single transaction. This additional factor of authentication will protect State Bank cardholders from unauthorized ATM cash withdrawals. To know more details about the SBI's OTP-based ATM withdrawal one can log in at bit.ly/39gErE2.

See SBI tweet below:

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 Jan, 2020 across all SBI ATMs. To know more: https://t.co/nIyw5dsYZq#SBI #ATM #Transactions #SafeWithdrawals #Cash pic.twitter.com/YHoDrl0DTe

— State Bank of India (@TheOfficialSBI) December 26, 2019

The OTP Based Cash Withdrawal System shall be active across all State Bank ATMs w.e.f. 01st January 2020 between 8 PM to 8 AM. The facility will not require any major change in the present process to withdraw cash from State Bank ATMs. However, this facility will not be applicable for transactions, where a State Bank cardholder withdraws cash from another bank's ATM, because this functionality has not been developed in National Financial Switch (NFS). In this process, once the cardholder enters the amount they wish to withdraw, the ATM screen displays the OTP screen. The customer has to input/punch the OTP received on his mobile number registered with the Bank on this screen for getting the cash. This will safeguard the customers against the risk of unauthorized transactions on account of skimmed/cloned cards while withdrawing cash at State Bank ATMs.

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The SBI announced about the OTP-based cash withdrawal through a tweet from its official twitter handle as well citing, "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 Jan 2020 across all SBI ATMs."