SBI lowers ATM withdrawal limit to Rs 20,000

State Bank of India has lowered the ATM cash withdrawal limit to Rs 20,000 a day, from the earlier Rs 40,000. The changes will be effective from October 31.

The notice sent to the bank offices stated, “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.”

Despite the digital push by the government, the demand for cash continues to be high. Talking about whether this will have any affect on bankers, SBI managing director PK Gupta was quoted by Economic Times, “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 also added that 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.