India’s largest lender, State Bank of India, has reduced the daily ATM withdrawal limit on its SBI Classic and Maestro debit cards to Rs.20,000 from the previous limit of Rs.40,000. Starting today, users of these cards will be eligible to withdraw a maximum of Rs.20,000 per day from ATMs.
SBI mentioned this change on its official website. The bank, however, has not changed the withdrawal limit on its other line of cards. Customers with Gold and Platinum cards will continue to have an upper withdrawal limit of Rs.50,000 and Rs.1 lakh/day respectively.
Individuals who are eligible for higher withdrawal limits can choose to apply for different debit cards which offer higher limits.
According to a report by Livemint the primary reason for SBI to reduce the ATM withdrawal limit is to curb fraudulent activities. The move also aims to increase cashless transactions.
According to a report by The Times of India, the daily average ATM withdrawal/card is under Rs.20,000.
SBI also recently asked customers with magstripe debit cards to upgrade to debit cards which are chip-based. The intention behind this move is to provide an added layer of security to prevent the misuse of debit cards. The chip-based cards have added security features and SBI will replace old cards for free.
Sources: Livemint, The Times of India.