SBI halves daily ATM cash limit to Rs 20,000

The country’s largest lender, State Bank of India (SBI), has lowered the ATM cash withdrawal limit to Rs 20,000 a day, from Rs 40,000. The lower limit 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,” said a bank communiqué to offices. Skimmers, as reported in multiple cases in the past decade, steal the PIN for debit cards from unsuspecting customers using hidden cameras and electronic devices. The Classic cards constitute a sizeable chunk of SBI’s card portfolio. The restriction on cash withdrawals comes weeks before the festival season. 66021842 Despite the government’s digital push and rise in digital transactions, the demand for cash continues to be high and, according to some estimates, 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 customers with a requirement for more can ask for card variants that offer higher withdrawal limits. Such cards are issued to those keeping a higher minimum balance 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 growth of some of the large banks, with cardholders outside the top 10 cities accounting for 40-45% of spending. As per Banking Codes & Standards Board of India (BCSBI) guidelines, at least 30 days’ notice has to be given to customers for any change in terms and conditions or charges. SBI has directed all its branches to display the message on notice boards.

from Economic Times https://ift.tt/2y0UMLl