OTP authentication mandatory for withdrawals above Rs.10,000

Mysore: You might now 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 transaction you make via ATM (Automatic Teller Machine).

Banks have initiated 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. Soon, the system will be adopted by all nationalised banks.

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.

The Bank, in a statement said, “Now your ATM cash withdrawals in Canara Bank ATMs get safer and more secured with OTP facility on cash withdrawals above Rs.10,000 in a day. This additional factor of authentication protects from unauthorised ATM cash withdrawals for our card holders.”

This move is in line with banks trying to take security measures to safeguard customers who use debit cards to withdraw cash at ATMs. Many banks have been taking measures to safeguard their customers against risks while using debit cards for cash withdrawal at ATMs.

A 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 year, State Bank of India (SBI) had announced the launch of ‘YONO Cash’ using which customers can withdraw money from ATMs without using a card. SBI said that transactions using YONO will be secured with two-factor authentication and will also eliminate the risk of skimming and cloning.

SBI customers can initiate the cash withdrawal process on the YONO app and set a six-digit PIN for the transaction. They will also get a six-digit reference number for the transaction on their registered mobile numbers.

In another development, the Reserve Bank of India (RBI) said that transactions on account of technical glitches including hardware, software, communication issues and non-availability of currency will not be counted as valid transactions. It added 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, “Transactions which fail on account of technical reasons like hardware, software, 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.”

“Non-cash withdrawal transactions (such as balance enquiry, cheque book request, payment of taxes, funds transfer, etc.), which constitute ‘on-us’ transactions (i.e., when a card is used at an ATM of the bank which has issued the card) shall also not be part of the number of free ATM transactions,” the RBI statement mentioned.