Soon, OTP authentication for ATM cash withdrawals above Rs 10,000
Canara Bank has already begun the process of seeking OTP for ATM transactions carried out above Rs 10,000
New Delhi: Soon, you might have to necessarily carry your mobile phone, every time you visit an ATM for withdrawal of cash because banks will send you an OTP (One Time Password) for each transactions you make via ATMs.
Banks would initiate the step keeping in mind the increasing rates of ATM frauds. Canara Bank has already begun the process of sending OTP for ATM transactions carried out above Rs 10,000
Canara Bank has made it mandatory for customers to provide ATM PIN number along with an OTP, sent on the customer's registered number for the withdrawal of the aforesaid amount to check unscrupulous people from misusing the ATM.
State Bank of India's deputy general manager Suresh Nair told Zee Media that the state-owned lender is also going to start OTP based ATM transactions for their customers in a bid to check the menace of ATM related frauds.
Although, couple of days ago SBI chairman Rajnish Kumar had said that the bank is contemplating to put an end to ATM-based transactions altogether in the long run and encourage mobile app-based transactions.
Earlier this month, Reserve Bank of India (RBI) had released a statement saying that transactions on account of technical glitches including hardware, software, communication issues and non-availability of currency will not be counted as valid transactions. The RBI had also said that no charge will be levied on the same.
"It has come to our notice that transactions that have failed due to technical reasons, non-availability of currency in ATMs, etc, are also included in the number of free ATM transactions," said RBI in a statement, further adding, "It is hereby clarified that transactions which fail on account of technical reasons like hardware, software, communication issues; non-availability of currency notes in the ATM; and other declines ascribable directly / wholly to the bank/service provider; invalid PIN/validations; etc, shall not be counted as valid ATM transactions for the customer. Consequently, no charges, therefore, shall be levied."