What is an OTP Number?

Posted on Wednesday, November 13th, 2024 | By IndusInd Bank

Have you ever been asked for an OTP number during an online payment and wondered what it is? If you have found yourself asking, “What is my OTP code?” or “What is the full form of OTP?” you are not alone. OTP stands for One-Time Password. This is an important security feature in digital banking and online transaction verticals. It ensures your online activities, such as opening a savings account or making a transaction, are secure and protected from unauthorised access.

OTP Meaning

As mentioned above, OTP stands for One-Time Password. It is a unique and temporary code sent to your registered phone number or email address, used to authenticate your identity during an online transaction or login process.

This code is generally a six-digit number and is valid for a short term, typically a few minutes. Once used, the OTP becomes invalid and cannot be reused, making it an effective security measure. 

How Does OTP Work?

Here’s how OTP works:

1. Generation

When you begin a transaction, the bank’s system generates a unique one-time password. This code is a random combination of numbers (and sometimes letters) created particularly for that transaction, ensuring it is secure and unique.

2. Delivery

The OTP is instantly sent to your registered email address or mobile number. This ensures that just you, the authorised user, receive the OTP, adding a security layer by restricting access to those who have your contact information.

3. Input

You then input the OTP on the transaction page. It is essential to input the code exactly as received, as even a minor mistake will prevent the transaction from proceeding.

4. Verification

The system checks the OTP you inputted against the one it generated. If they match, the transaction is approved. If not, you might require re-entering the right OTP or requesting a new one.

5. Expiration

OTPs are valid just for a short term, typically a few minutes. If not used within this time, they expire, and you will be required to generate a new one. This time limit enhances security by ensuring that the OTP is used quickly and cannot be misused later.

How is OTP Linked with Savings Accounts?

OTP plays an important role in online banking, particularly when it comes to savings accounts. Whether you are undergoing an online savings account opening process or managing an existing account, an OTP ensures that only authorised users can access and operate the bank account.

For example, when you apply to open an online zero-balance account, the bank might send an OTP to authenticate your identity and the details you have provided. This step helps safeguard your account from unauthorised access and fraudulent activities.

IndusInd Bank Savings Account 

When it comes to savings accounts, IndusInd Bank offers the Indus Delite Savings Account, tailored to cater to your particular needs. This zero-balance account not only provides you with the security of OTP but also offers customised solutions for your ease. For instance, it comes with a zero-balance requirement. This means that you don’t have to maintain a specific minimum balance in your account and have complete flexibility in utilising your funds.

Additionally, if you apply for the Delights Debit Card, you can enjoy a wide range of exciting offers, such as:

Also Read: 5 Benefits of Having a Savings Account with Digital Banking Services

Ending Note

An OTP is an essential security feature in digital banking systems, ensuring secure and safe transactions. It plays a crucial role in protecting your savings account and making online banking safer and easier. The Indus Delite Savings Account enhances your banking experience with added security through OTP and a host of exciting features and benefits customised to your lifestyle.

Selecting the Indus Delite Savings Account means not just securing your finances but also enjoying exclusive rewards. So, are you ready to experience the best in banking? Open your account online today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.