State Bank of India aka SBI ATM withdrawal limits have been lowered down by half from Rs 40,000 to Rs 20,000 per day allowing less withdrawals citing to limit fraudulent transactions at ATMs and encourage digital/cashless transactions in the country.
The new lowered SBI ATM withdrawal limit will be applicable all over India from 31st October, 2018 and the limit will be mandatory on the classic debit cards offered by SBI. So now o, the classic debit users will be limited to a withdrawal capacity of Rs 20,000 instead of earlier limit of Rs 40,000 perr day. The limit has been set citing 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,” said a bank communique to offices.
While the new limit on the classic debit card will take effect on October 31, there will be no change in the daily withdrawal limits for other cards except classic debit card. The main reason for changing withdrawal limits on this particular card is that, SBI classic debit card, is the most popular ATM-cum-debit card provided by the bank. Also, This card variant is not chip-based and hence there are many concerns regarding its security, Press Trust of India cited a senior bank official as saying. Also, SBI has agreed to provide free up-gradation of their old debit cards to EMV Chip-and-PIN cards as it is safest option for debit cards.
ATM users are the most prone to fraudulent practices and cheating, PIN stealing etc and one of the experienced people in the payments technology industry said that debit card users are most gullible when it comes to card frauds. As he said “Information such as PIN is not just stolen at ATMs. In fact, I would say (this also happens at) point of sale terminals in merchant outlets and also by some people carrying mobile card swipe devices. Many debit cards still follow the magnetic stripe technology and are comparatively more prone to frauds. Only for international debit cards is the transition to chip-based technology taking place.” Keeping all these things in mind, SBI has changed the cash withdrawal limit with a one month prior notice to the customers making it possible for them to make any changes in their card preferences.