The reduction in ATM withdrawal limit to Rs 20,000 from Rs 40,000 by State Bank of India comes into effect from tomorrow. So, if you hold an SBI Classic or Maestro debit card, then you will be able to only withdraw Rs 20,000 a day from ATM from Wednesday.
In an attempt to curb increasing instances of ATM frauds, the State Bank of India halved the daily ATM withdrawal limit on October 1. Over 42 crore bank customers will be affected with this limit in the festival season.
SBI Managing Director PK Gupta had said the reduction in withdrawal intends to protect customers from fraudulent cash withdrawals from ATMs and also to spur more digital transactions.
We analysed all the ATM transactions and we found that most of them are less than Rs 20,000 a day. In case of frauds reported to us, we found that in all such cases withdrawals of Rs 40,000 (the maximum) have happened. So, this is basically to protect the customers and secondly, we want that more digital transactions should happen.
PK Gupta, Managing Director, SBI
Here are 10 things to know about SBI’s new ATM cash withdrawal limits:
- From Wednesday, SBI customers using the Classic debit card will be able to take out a maximum of Rs. 20,000 every day from ATMs in a day.
- The move – aimed at checking fraudulent transactions – is in line with the Reserve Bank of India (RBI)’s directive on migration to EMV chip-and-pin cards.
- The Classic debit card is one among the many types of debit cards provided by SBI.
- The Classic debit card is not chip-based and so there are concerns about its security, had cited a senior SBI official as saying.
- “The bank has been receiving many complaints regarding cloning. Due to this the decision is taken to reduce the withdrawal limit on these cards,” the official explained.
- There is no change in the daily ATM withdrawal limits applicable to other SBI cards.
- The SBI Classic debit card, the agency reported, is the most popular ATM-cum-debit card provided by the bank.
- SBI provides free-of-cost upgrade of debit card to its customers. The upgrade of existing debit card to an EMV chip-and-PIN debit card offers enhanced security, according to the bank.
- RBI has set a December 31 deadline for commercial banks to migrate from magnetic stripe-based cards to EMV chip-and-pin cards.
- SBI issued over 39.5 crore debit cards with around 26 crore actively-used debit cards, as of March 2018.