Banks introduce OTP-based ATM withdrawals: Here is how new system works 

State Bank of India has introduced an OTP-linked ATM cash withdrawal system to prevent cyber frauds and cheating.

All people intending to withdraw cash of Rs 10,000 and more will receive an OTP which they will have to feed to the ATM machine before it dispenses the money.

However, cash less than Rs 10,000 can be withdrawn without OTPs. This too can be withdrawn at special ATMs.

The bank has introduced a new system to protect customers from any fraud. Cardholders will receive an OTP on their mobile number registered with SBI at the time of initiating the cash withdrawal process at the ATM. 

The OTP is a four-digit number that authenticates the user for a single transaction. The SBI cardholder has to enter the OTP received on his/her mobile number registered with the bank in this screen for withdrawing the cash.

“Our OTP-based cash withdrawal system for transactions at SBI ATMs is vaccination against fraudsters. Protecting you…,” SBI tweeted.

SBI said the new system will safeguard the customers against the risk of unauthorized transactions on account of skimmed /cloned cards while withdrawing cash at SBI ATMs

However, in some cases, the customers are facing problems because of network issues and delays in receiving the OTP. SBI tweeted that the bank is working on the error and customers have been informed about this.