What has happened?
- The State Bank of India (SBI) has launched a one-time password (OTP) based cash withdrawal service to protect its customers against fraudulent ATM transactions.
- Soon many banks are expected to switch to this method for cash withdrawals from ATMs.
- This will work as an extra layer of protection against unauthorized transactions.
What is this extra security?
- According to the SBI, customers will have to enter the OTP during the cash withdrawal at ATMs to complete the transaction.
- The OTP is a system-generated four-digit number, which will be sent on the registered mobile number of the customer.
- The OTP will authenticate the cash withdrawal and it will be valid for only one transaction.
- The largest lender in the country launched the OTP-based cash withdrawal services on January 1, 2020.
- But this is applicable for people withdrawing Rs 10,000 or more in one transaction at SBI ATMs, as an extra layer of protection against fraud.
- The bank tweeted, “Our OTP based cash withdrawal system for transactions at SBI ATMs is a vaccination against fraudsters. Protecting you from fraud will always be our top priority.”
Charges on transactions
- The country’s largest lender State Bank of India (SBI) offers five free transactions for customers maintaining a monthly balance of up to Rs 1 lakh at its ATMs in Delhi, Kolkata, Mumbai, Chennai, Bengaluru and Hyderabad.
- The free transactions are capped at three at other bank ATMs.
- SBI charges Rs 5-20 for transactions beyond the free limit, depending upon the type of transaction and the ATM.
- SBI charges Rs 10 to withdraw money from the bank’s ATM beyond the free limit, while it levies Rs 20 for financial transactions from other ATM beyond the free limit.
- For non-financial transactions like checking account balance, customers are charged Rs 5 at SBI ATM and Rs 8 at other bank ATMs.
- Those who maintain a monthly balance of over Rs 1 lakh are offered unlimited free transactions at SBI and other bank ATMs.
- For international transactions at ATM, the bank charges Rs 100 apart from 5% of the transaction amount.
- International transactions made through point of sale are charged at 3% of the transaction amount.
- If one has an insufficient balance in the account and a transaction is declined due to that, SBI charges Rs 20.
Number of ATM
- SBI is India’s largest public sector bank with 22,224 branches and 63,906 ATM/CDM in India.
- Approximately, 91 million and 20 million people use Internet Banking and Mobile Banking.
- SBI recently raised its interest rates on both loans and deposits.
- It hiked its interest rates on fixed deposits by up to 20 basis points.
- The new SBI FD interest rates are applicable to deposits below Rs 2 crore.
- The maximum interest rate will be enjoyed by depositors who have or will open an FD account in the 211 days to less than a year tenure.
Q) Which among the following is NOT a quantitative measure of control ?
- Bank Rate Policy
- Open Market Operations
- Reserve Requirements
- Margin Requirements