New Delhi: India’s largest lender State Bank of India (SBI) has already changed its rules related to OTP-based cash withdrawal from ATMs. Effective September 18, SBI announced the extension of time for OTP-based cash withdrawal from ATMs, thus giving the customers a wider window period.
SBI customers can now make ATM withdrawal of Rs 10,000 and above after an OTP verification throughout the day.
SBI has again tweeted regarding the rules recently for its customers. The bank has also asked customers to be alert, transact safely.
“Keeping the safety of our customers in mind, SBI has extended OTP based authentication for cash withdrawals of ₹ 10,000 & above on SBI ATMs to 24×7. Be alert, transact safely!,” SBI tweeted.
How does OTP-validated ATM transaction work?
The OTP-validated ATM transaction was introduced to minimise the number of unauthorised transactions, State Bank of India had said.
With the introduction of its OTP-based cash withdrawal facility, State Bank added another layer of security for cash withdrawals through its ATMs service.
OTP would be received on the customer”s mobile number registered with the bank. This additional factor of authentication protects State Bank card holders from unauthorized ATM cash withdrawals
Who can avail the services?
This facility will not be applicable for transactions, where a State Bank card holder withdraws cash from another bank’s ATM. It is because this functionality has not been developed in National Financial Switch (NFS), as per SBI. NFS is the largest interoperable ATM network in the country and it manages more than 95 per cent of the domestic interbank ATM transactions.
How to withdraw cash based on SBI OTP Service?
Once the cardholder enters the amount he/she wishes to withdraw, the ATM screen displays the OTP window.
The customer has to enter the OTP received on the registered mobile number to complete the transaction.
A few rules have also kicked in from October 1 for the Bank’s customers. Tax Collected at Source (TCS) on Liberalised remittances scheme has been made effective from October 1, 2020. TCS on Liberalised remittances scheme are levied over and above teh remittance amount of Rs 7 lakh by a customer in a financial year and is effective from October 1.
The limit of Rs 7 lakh will be determined by adding all LRS remittances (including out of disbursement of education loan) during the Financial year. In case of remittances made for overseas tour programme packages, TCS is applicable on all remittances even if the amount is less than 7 lakh.