SBI Launches OTP-Based Cash Withdrawal System for Customers

As there is an increase in the number of ATM frauds across the country,  the State Bank of India (SBI) has launched a new initiative to not only protect its customers from falling into any kind of traps but also to minimize such fraudulent crimes. 

SBI Launches OTP on Cash-Withdrawal

The SBI has launched a one-time password (OTP)-based cash withdrawal system for the ATMs. In this, the bank will provide an additional security measure to its customers wherein the account holders withdrawing cash from ATMs will receive an OTP on their mobile phones. Only after the customer has verified the transaction using the OTP will they be able to withdraw the cash from ATM.

This new innovative solution from SBI is indeed worth applauding as it is a step in the right path to providing better safety to all its customers. It will provide an additional layer of security to the customers & it will protect them from getting into the trap of any criminals.

Since the OTP, will be sent only to the customer’s registered mobile number, the scope of fraud will automatically be minimized. 

SBI’s Announcement

The SBI bank has announced this through its post on its official Twitter handle on 24^th October 2021. It said that “Our OTP-based cash withdrawal system for the transactions at SBI ATMs is vaccination against fraudsters. Protecting you from frauds will always be our topmost priority."

It has also attached a short video with its official announcement on Twitter wherein the entire safety process while using the OTP for cash withdrawal is explained in a simplified manner.

Note: SBI Customers must note that they can only avail this service when they are using their SBI card to withdraw cash from an SBI ATM.

If any customer tries to withdraw the cash from any other bank's ATM, they will not be able to avail this protection facility. According to media reports, this is because; the new system has not been created in the National Financial Switch (NFS).