As part of an initiative to curb frauds, The State Bank of India (SBI) has decided to halve its daily ATM withdrawal limit to Rs.20, 000 a day.
The country's largest lender expects that the new decision will boost digital transactions apart from curbing the frauds. The limit of the Classic Debit Card has lowered to Rs.20, 000 a day. Earlier, the limit was Rs.40, 000. The lower limit will be effective from October 31. The announcement from the bank comes just weeks before the festivals and will be effective days before Diwali.
The decision will affect most of its customers as the Classic Debit Card constitutes a sizeable chunk of the bank's card portfolio. "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," SBI managing director PK Gupta told the Economic Times. (PenNews with input from UNI)