Over the next couple of months, four services will be winded up by SBI (State Bank of India). Those customers who are using Maestro and Classic debit cards, will not be able to withdraw more than Rs. 20, 000 from ATMs with effect from the 31st of October, 2018. SBI is also closing SBI Buddy, its mobile wallet from the 1st of November, 2018.
Additionally, those SBI customers who have not registered their mobile numbers will not be able to access internet banking facilities from the 1st of December, 2018. Also, magnetic stripe-based debit cards will cease to function from the 31st of December, 2018, onwards. SBI has imposed the restrictions on withdrawals to safeguard customers better against any fraudulent transactions. Also, the bank has stated that as per thorough analysis, most withdrawals are lower than Rs. 20, 000 on a daily basis. SBI Buddy will be shut down and those accounts which have zero balance are already being closed.
The app had almost 12 million users by the end of 2017 as per reports. The YONO wallet option has already been unveiled for customers. SBI has asked all its customers to get their magnetic stripe ATM cum debit cards swapped with EMV chip based cards prior to the 31st of December, 2018. The RBI has already directed banks in the country to issue solely PIN-enabled and chip-based credit and debit cards with a view towards safeguarding banking customers from frauds.
EMV chip cards protect people against any chances of counterfeit frauds. A major chunk of SBI customers are already making use of these cards which are EMV-chip based. Free replacements are being offered by State Bank of India in this regard.