SBI To Introduce OTP System For High Value ATM Withdrawals

Banks have now become more active in their efforts to rein in the rising incidence of fraud against their customers. The largest public sector bank -- State Bank of India (SBI) -- has introduced new measures to put a stop to growing cases of cheating and fraud against its customers. Now, it has been made mandatory to provide a One-Time Password (OTP) for withdrawals of Rs 10,000 from SBI ATMs.

This measure will be applicable from January 1, 2020.  

However, a restriction on OTP will be applicable from 8 p.m. to 8 a.m. It will be possible to withdraw cash from SBI ATMs between 8 a.m. and 8 p.m. without OTP. 

The biggest advantage of this measure is that if a fraudster manages to clone an ATM card and also gets the ATM PIN, he will still not be able to withdraw cash from the bank account. To withdraw the cash, he will require the OTP sent to the customer’s mobile, which he will be unable to provide.

For the time being, this measure has been introduced by the SBI for its customers. If it proves effective, other banks could also mull over the introduction of such measures for their customers.

According to recent figures released in Parliament, there has been a 50% spurt in cases of fraud related to ATMs, netbanking, debit and credit cards, between 2017 and 2019, and customers have become concerned about the safety of their deposits.