State Bank of India (SBI), the biggest lender in the country, has officially reduced the cash withdrawal limit from ATMs to Rs. 20, 000 each day as compared to Rs. 40, 000 per day earlier. This reduced limit will come into effect from the 31st of October, 2018. As per reports, the bank has been noticing a rapid increase in the complaints that are coming in with regard to fraudulent transactions throughout ATMs. Also, SBI desires to encourage cashless and digital transactions. As a result, the cash withdrawal limit has been lowered for debit cards that have already been issued or are being issued for the Maestro and Classic platforms as per official reports.
Several cases have been observed in the past where skimmers have stolen debit card PINs from unknowing customers via electronic devices and hidden cameras. The Classic cards make up a big portion of the total card portfolio at SBI and this decision will be implemented only a few weeks prior to the festive season. The bank has also reportedly stated that as per its own analysis, most withdrawals tend to be of smaller amounts and hence Rs. 20, 000 will be sufficient for most clients. The bank is attempting to observe whether smaller withdrawals can help in lowering fraudulent activities throughout the country.
Customers who desire more cash can choose card types which have higher limits for withdrawals. These cards are given to those who have higher minimum balances in their accounts. State Bank of India has also issued a directive to all its branches for displaying this new notification on notice boards for the benefit of all customers and visitors.