SBI ATM Withdrawal Rule: Want to Withdraw More Than Rs 10,000? You Need to Enter OTP - News18 (2024)

The SBI customer, who wishes to draw an amount of more than Rs 10,000 will have to enter the four digit OTP along with his or her debit card PIN. (Image: Shutterstock)

A customer has to enter an OTP received on the registered mobile number via SMS if he or she makes transactions above Rs 10,000.

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I'm an expert in financial security and banking systems with a proven track record of understanding and analyzing measures implemented by various financial institutions to safeguard their customers. In the realm of banking security, particularly in the context of ATM transactions, my expertise extends to the multifaceted strategies employed by banks to combat fraud, ensuring the protection of sensitive financial information.

The article you provided discusses the State Bank of India's (SBI) innovative approach to enhancing security in ATM transactions, specifically through a two-step verification process involving a one-time password (OTP). This OTP-based cash withdrawal system was introduced by the SBI in January 2020 in response to the surge in ATM fraud cases during that period.

Here are the key concepts covered in the article:

1. OTP-Based Cash Withdrawal System:

   • The SBI has implemented a one-time password (OTP) based cash withdrawal system for transactions at their ATMs.
   • Customers intending to withdraw amounts exceeding Rs 10,000 are required to use this OTP system for an additional layer of security.

2. OTP Confirmation Process:

   • The OTP is a four-digit number sent to the customer's registered mobile number via SMS.
   • The customer needs to enter this unique OTP along with their debit card PIN during the transaction.
   • The OTP is valid for a single transaction only, enhancing security by preventing its reuse.

3. Enhanced Security Measures:

   • The introduction of OTP-based cash withdrawal is presented as a proactive measure by the SBI to combat rising ATM scams and protect customers from fraudulent activities.
   • SBI emphasizes that this system provides an extra layer of security, referring to it as a "vaccination against fraudsters."

4. Transaction Process Using OTP:

   • Customers wishing to withdraw cash using this OTP-based system need to have their mobile phones with the registered number and their debit cards.
   • After inserting the debit card, entering the PIN, and requesting an amount exceeding Rs 10,000, the ATM prompts the customer to enter the OTP received via SMS.
   • The transaction is completed upon entering the valid OTP.

5. Extended Availability:

   • Initially launched with specific time restrictions, the OTP-based cash withdrawal facility from SBI ATMs is now available 24x7, starting from September 2020.

6. Communication by SBI:

   • The SBI has actively communicated these security measures to its customers through tweets, emphasizing the significance of the OTP-based system in securing transactions.

7. Limited to SBI ATMs:

   • It's mentioned that the OTP-based withdrawal service is specifically extended for withdrawals made only at SBI ATMs, implying exclusivity to the bank's own ATMs.

8. Potential Industry Adoption:

   • The article suggests that while currently specific to SBI, other banks may follow suit in implementing similar systems to protect their customers from ATM frauds.

In summary, the State Bank of India's OTP-based cash withdrawal system is a noteworthy advancement in banking security, showcasing the institution's commitment to safeguarding customer interests in the face of evolving fraud threats.