Public sector lender Canara Bank says it has launched India’s first OTP facility for ATM withdrawals. Canara Bank said that the OTP facility will get activated on ATM cash withdrawals of ₹10,000 in a day. In an August 20 tweet, Canara Bank said, “Now your ATM cash withdrawals in Canara Bank ATMs get safer and more secured with OTP facility on cash withdrawals above ₹10,000 in a day. This additional factor of authentication protects from unauthorized ATM cash withdrawals for our card holders."
Many banks have been taking measures to safeguard their customers against risks while using debit cards for cash withdrawal at ATMs.
Earlier this year, 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 via SMS. The cash withdrawal has to be completed within the next 30 minutes at an ATM using both the PIN and the reference number.
In another development, RBI had earlier this month said that ATM transactions which fail on account of technical reasons like hardware, software, communication issues; non-availability of currency notes in the ATM and invalid PIN / validations will not be counted as valid ATM transactions for the customer. Consequently, bank will not levy any charges.