OTP-based cash withdrawal: As instances of ATM card fraud rise in the country, State Bank of India, the country’s biggest lender has introduced a card-less cash withdrawal facility or OTP-based cash withdrawal facility to protect its customers from unauthorized transactions across all SBI ATMs. This new facility has been active since the start of 2020 and allows ATM cardholders to withdraw cash with the help of OTP.
According to the state-owned lender, an OTP is sent to the registered mobile number of the customer before cash withdrawal. The OTP is a numeric string of characters to authenticate the user for a single transaction. Once the customer enters the amount he wishes to withdraw, the ATM screen will display the OTP screen. The customer then needs to input the OTP received on his registered mobile number for getting cash dispensed from the ATM. This process is much safer as compared to ATM card-based cash withdrawal and helps protect customer data from fraudsters.
The customers need to know that this facility is only available for cash transactions under Rs 10,000. Above this, you also need to provide the PIN along with the OTP. This facility is available at all State Bank ATMs since January 1. The OTP-based withdrawal is not available at non-SBI ATMs.
This facility is available at all State Bank ATMs since January 1. The OTP-based withdrawal is not available at non-SBI ATMs.
“With the introduction of its OTP Based Cash Withdrawal Facility, State Bank ATMs have added another layer of security for cash withdrawals. OTP will be received on the customer’s mobile number registered with the Bank,” SBI had said ahead of the launch of the new facility last year.
For those unaware, SBI allows 8 free ATM transactions in a month to its regular savings account holders. These include five free transactions from SBI ATMs and three from non-SBI ATMs. Customers in non-metro cities get 10 free ATM transactions, in which 5-5 transactions can be made from SBI and other banks. It then levies Rs 20 + GST for cash transactions and Rs 8 + GST for non-cash transactions.
Meanwhile, the bank has lowered its Marginal Cost of Funds based Lending Rate (MCLR) by 5-10 bps in the shorter tenors, with effect from July 10. SBI’s MCLR for the tenor up to three months has been lowered to 6.65 percent per annum. This is the fourteenth consecutive reduction in the lender’s MCLR.