HIGHLIGHTS
SBI halved the withdrawal limit from Rs 40,000 to Rs 20,000
The limit has been reduced to curb increasing instances of ATM frauds
SBI also aims to boost digital transactions by reducing this limit
With an aim to reduce the rising number of ATM fraud cases and give a boost to digital transactions, the State Bank of India (SBI) halved the daily ATM withdrawal limit from Rs 40,000 to Rs 20,000. The limit will be effective from October 31, the Economic Times reported.
"In view of the increase in the number of complaints received by banks around fraudulent transactions at ATMs and to encourage digital and cashless transactions, it has been decided to decrease the cash withdrawal limits of debit cards issued or being issued on Classic’ and Maestro’ platforms", SBI said in a communication sent to its offices as reported by the Economic Times.
The announcement by the largest lender in the country comes just weeks before the festivals and will be effective days before Diwali.
"Our internal analysis shows most actual withdrawals are of smaller amounts. So, Rs 20,000 should be adequate for most customers. We are trying to see whether smaller withdrawals could minimise frauds," SBI managing director PK Gupta told the Economic Times.
The customers who want higher withdrawal limit can request for cards variants with such offers and such cards can be issued to account holders with the required higher minimum balance in their accounts.