Individuals who have a savings bank account with State Bank of India will not need their debit cards to withdraw money from ATMs anymore. The public sector lender recently announced that it will permit cardless ATM withdrawals via its mobile app YONO. The lender will also be enabling payments at POS or point of sale terminals through the application.
Mr. Rajnish Kumar, the chairman of State Bank of India, announced that the cardless withdrawal facility will be enabled at around 16,500 ATMs of SBI for now. This service will eventually be available at all 60,000 ATMs of the lender over the course of the coming few months. The service allows users to generate an OTP that has a validity of 30 minutes. The user will need to visit an SBI ATM within this time, validate the transaction with a YONO pin that is pre-set, and then enter the OTP that was generated.
Customers can only use this service on one device. A senior official at State Bank of India stated that this mode of cash withdrawal is more secure than using a debit card for ATM transactions.
Customers can withdraw a sum of up to Rs.10,000 during one transaction. The total number of transactions that customers can make in a day is restricted to two.
State Bank of India’s YONO app currently has around 7 million users, while the SBI Anywhere mobile application has more than 10 million users. The lender is expected to integrate the two applications and offer its services through a consolidated platform.
The public sector lender has announced that this service will currently be launched only for its debit cardholders. Based on the service’s operational success, the bank will take a call on whether to provide this service to credit cardholders, as well.
Source: The Economic Times, The Times of India, Business Today