Know why SBI cut daily ATM withdrawal limit to Rs 20,000

NEW DELHI: In view of spurt in fraudulent transactions ahead of festive season, State Bank of India (SBI) has lowered the ATM cash withdrawal limit to Rs 20,000 per day, from Rs 40,000.

According to a report, the lower limit on debit cards will be effective 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”, SBI said in a communication sent to its offices, as reported by the Economic Times.

The restriction by the largest lender in the country comes weeks before the festive season.

“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 minimize frauds,” SBI managing director PK Gupta told the Economic Times.