Understanding the Debit SWPO in SBI: Fraud or Automatic Charge Deduction?

Was the recent message on your SBI bank account about a debit SWPO (Systematic Withdrawal Plan Order) a sign of fraud or a legitimate bank deduction? Let's break down the situation and understand the causes behind such automated charges.

What Happened on January 4, 2020?

On January 4, 2020, you received a message from SBI Bank about a debit from your account without your authorization. Upon checking your transaction details, you noticed a message like this:

Don't panic, Just Relax, Calm down. It is NOT A FRAUD actually what happened was this: I ordered food from SWIGgy and ZOMATO on January 1, 2020. I paid online using the SBI debit card, and at that time the payment got successful but the money was not debited. I came to know about it later. The food got delivered successfully and on the same day, later I got a message of a failed transaction, yes, the same transaction. Now, that same amount of food that I ordered on January 1, 2020, was now debited, i.e., on January 4, 2020. Maybe it happened due to some technical issue. I think that the same thing happened with others, and that SWPO (Systematic Withdrawal Plan Order) is used for pending transactions.

What is SWPO?

SWPO stands for ‘Systematic Withdrawal Plan Order’. It is a mechanism employed by banks to ensure that pending transactions are cleared without manual intervention. Here’s a more detailed explanation:

Automated Deductions: When you make an online transaction using your debit card, the bank might not immediately debit the amount from your account due to slower server response times. However, the transaction is recorded and awaits confirmation. Pending Transactions: The bank waits for a batch processing or verification to confirm the legality and validity of the transaction. Once the transaction is verified, it automatically debits the amount from your account. SWP Usage: Systematic Withdrawal Plans (SWPs) are used by investors to withdraw money from mutual funds or investment accounts at scheduled intervals. These plans are designed to provide regular payouts to investors, ensuring financial stability in retirement.

Is it a Sign of Fraud?

Many consumers might wonder if such a debit is a sign of fraud. The answer is a resounding no. According to a statement from the bank:

No, it's just a pending transaction like sometimes while withdrawing money from an ATM or swiping at a POS, money may not be debited to your bank account because of a server slow response. So the bank will debit it manually after verification.

How Can You Prevent Such Issues?

To avoid such issues in the future, here are some tips:

Check Your Transaction History: Regularly review your bank statements and online transaction histories for any unauthorized or unexpected charges. Stay Informed: Keep yourself updated about the latest banking practices and security measures to protect your accounts. Report Suspicious Activities: If you notice any suspicious activity, contact your bank immediately to report it.

Conclusion

In summary, a debit SWPO in SBI is typically not a sign of fraud but rather an automated deduction due to pending transactions. The bank system ensures that these transactions are cleared promptly and safely, reducing the likelihood of unauthorized charges.

If you find your transactions troubling or if you have any further questions, feel free to contact your bank or refer to their official communication for more detailed information.