In the context of an ATM, OTP stands for One-Time Password.
Understanding OTP in ATM Withdrawals
An OTP in ATM transactions is a security feature designed to add an extra layer of protection, particularly for cash withdrawals. It helps authenticate that the person making the withdrawal is the legitimate account holder.
Key Characteristics of an ATM OTP
Based on the provided reference, here are the key features of an OTP used for ATM cash withdrawals:
- Nature: It is a system-generated four-digit number.
- Delivery: It is sent on the registered mobile number of the customer.
- Purpose: The OTP is used to authenticate the cash withdrawal, ensuring the transaction is authorized.
- Validity: It is valid for only one transaction, meaning a new OTP is required for subsequent withdrawals requiring this authentication method.
This OTP-based system for cash withdrawals was launched by the largest lender in the country on January 1, 2020, enhancing the security of ATM transactions.
