OTP-based cash withdrawal from SBI ATMs - all you need to know

Effective 01 January 2020, high-value cash withdrawals from SBI ATMs done at night require an OTP. Learn through this article the important changes that State Bank of India, the largest public sector bank in India, has brought in its ATM cash withdrawal policies.

Anyone who has withdrawn cash from an ATM knows how easy the whole process is. All that you need is a debit card and enough balance in your bank account. Withdrawals can be done even through a credit card. But, from 01 January 2020, things are different for SBI cardholders. Now an SBI cardholder is required to carry a mobile phone to carry out a transaction from an SBI ATM. It is essential that your mobile number be registered with your bank. While carrying out the transaction, you will be receiving an OTP on your registered mobile number. However, not all kinds of transactions will require an OTP. If the withdrawal amount is more than Rs 10,000 and the transaction is carried out between 8 pm to 8 am, then only the OTP will be required. In all other cases, where the transaction value is less than or equal to Rs 10,000 or the transaction timing is from 8 am to 8 pm, the things remain the same as earlier, i.e. no OTP is required. The same is applicable across all SBI ATMs nationwide.

Thus it can be seen that the mobile phone is going to become an essential accessory to withdraw money from an SBI ATM. Those who are yet to register their mobile numbers with their banks are advised to do so at the earliest. However, anyone transacting up to Rs 10,000 or in the day hours is not affected in any way.

How the system works

Other than receiving the OTP, the rest of the process remains the same. While transacting at night time between 8 pm to 8 am, as soon as the cardholder inputs an amount that is more than Rs 10,000, an OTP is generated and delivered to the registered mobile number of the cardholder. The OTP screen gets displayed on the ATM screen and the cardholder needs to enter the OTP manually. The OTP is a system generated one that consists of a string of numeric characters. On successful validation of the OTP, the cardholder is able to withdraw the cash.

Reason for bringing such changes

The reason put forward by the State Bank of India is that this facility will protect the cardholder from unauthorized cash withdrawals from ATMs. Often there are frauds where the money from someone's account is fraudulently withdrawn at ATMs. These incidents mostly occur at late hours when there are fewer visitors at ATM kiosks. The requirement of OTP will minimize fraudulent transactions from ATMs that are predominantly done at night. This is one more step by SBI towards safeguarding its customers from ATM frauds that occur mostly at lean hours, like late in the night and early morning.

Important points to note

  1. The OTP based cash withdrawal facility is effective from 01st January 2020.
  2. This facility is applicable for SBI cardholders only that too at SBI ATMs.
  3. The facility is not available if the SBI cardholder transacts from another bank's ATM. The interbank functionality is yet to be developed in NFS or National Financial Switch.
  4. Cardholders of other banks cannot use this facility at an SBI ATM.
  5. The facility is available at all SBI ATMs across the country.
  6. The OTP facility gets active from 8 pm to 8 am and an OTP will be generated if the withdrawal amount is more than Rs 10,000.


It is very thoughtful of SBI to introduce this feature for its ATM cash withdrawals. Its customers will be thus safeguarded from ATM frauds. It is hoped that in near future SBI will introduce this facility during the daytime too. The frauds will be then minimized further. Of course, there will be many for whom the entire exercise will be a cumbersome one. For family members who might not be in possession of the registered mobile phone, they may find it difficult to withdraw cash. At times one may forget to bring the mobile along or the mobile signals may be weak, thus causing a delay in the OTP to be delivered. But, as a whole, this feature is going to be of immense benefit to the cardholder, safeguarding his or her hard-earned money.

Article by Dhruv
Dhruv, an electrical engineer by training and profession, loves to dabble in writing during his free time. For the last seven years, he has been a content writer creating content for ISC on topics mostly related to school and college admissions.

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Author: Sharada04 Jan 2020 Member Level: Gold   Points : 1

It's indeed a good article based on the information and market research. The key facts collected will be useful to the ATM cardholders.

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