State Bank of India (SBI), which is a leading public sector bank in India, has reduced the cash withdrawal limit in ATMs from Rs.40,000 a day to Rs.20,000. The new withdrawal limit will be applicable from October 31 across all SBI ATMs.
The bank released a statement saying the withdrawal limit has been cut for debit cards that are issued on the ‘Maestro’ and ‘Classic’ platforms due to banks receiving reports of fraudulent transactions that are taking place at ATMs and to encourage cashless and digital transactions among Indians.
Despite the initiatives taken by the Government of India to push digital transactions, the demand for cash is still high. Mr. P.K. Gupta, the Managing Director of State Bank of India, said that the lender’s internal analysis indicates that most withdrawals are of lower amounts. Thus, a Rs.20,000 cash withdrawal limit per day should be sufficient for most people. He added that customers who require high withdrawal limits could ask for different debit card variants, given that the bank issues such cards to individuals who maintain a higher minimum balance.
SBI offices across the country have been asked to inform their customers, given that the reduction in the withdrawal limit comes just a few weeks prior to the festive season in the country.
Sources: Moneycontrol, The Economic Times