State Bank of India (SBI), the country’s largest bank, will reduce the daily cash withdrawal limit for Classic and Maestro debit cards to Rs 20,000 per day from Rs 40,000 with effect from October 31, 2018.
SBI account holders having higher daily cash withdrawal requirements can apply for other debit card variants that have a higher daily withdrawal limit, the bank has said in a communication. There will be no changes in the daily withdrawal limits on other SBI debit cards. SBI’s Gold and Platinum debit cards have a daily ATM withdrawal limit of Rs 50,000 and Rs 1 lakh respectively.
“Daily cash withdrawal limits for Classic and Maestro debit cards reduced from Rs 40,000 to Rs 20,000 per day with effect from October 31, 2018. If you require a higher daily cash withdrawal limit, please apply for a higher card variant,” said an SBI notification on its website. SBI had issued over 39.50 crore debit cards while around 26 crore cards were being actively used.
According to SBI officials, the move to reduce the daily withdrawal limit was to reduce fraudulent transactions at ATMs and encourage digital and cashless transactions. The average cash withdrawal from ATMs per card is less than Rs 20,000.. About a month ago, SBI had alerted its customers holding Classic and Maestro debit cards regarding reduction of cash withdrawal limit to Rs 20,000 a day from ATM starting October 31.
“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,” said an SBI official.