The ATM money withdrawal limit has been brought down to Rs 20,000 by nation’s biggest loan lender, State Bank of India. As far as possible will be powerful from October 31.
“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,” said a bank communiqué to offices.
SBI Cuts Daily ATM Cash Withdrawal Limit To Rs 20,000
Skimmers, as detailed in different cases in the previous decade, take the PIN for check cards from clueless clients using shrouded cameras and electronic gadgets. The Classic cards comprise a sizeable piece of SBI’s card portfolio. The confinement on money withdrawals comes a long time before the celebration season.
In spite of the governments advanced push and ascend in digital transactions, the interest for money keeps on being high and, as indicated by a few evaluations, it is as high as pre-demonetisation levels.
Asked whether this could cause any inconvenience, SBI managing director PK Gupta said, “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.”
He said clients with a necessity for more can request card variations that offer higher withdrawal limits. Such cards are issued to those keeping a higher least parity in their bank accounts.
“According to a person in the payments technology industry, debit card users are most gullible when it comes to card frauds. “Information such as PIN is not just stolen at ATMs,” he said.
“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.”
Smaller cities are driving credit card development of a portion of the substantial banks, with cardholders outside the main 10 urban communities representing 40-45% of spending. According to Banking Codes and Standards Board of India (BCSBI) rules, something like 30 days’ notice must be given to clients for any change in wording and conditions or charges. SBI has guided every one of its branches to show the message on notice boards.