State Bank of India has reduced the daily ATM cash withdrawal limit from Rs 40000 to Rs 20000 per day. This change will be made effective Oct 31,2018.
A bank communication to its office stated that the change will be made on account of the increasing number of complaints that are received related to fraud and also for encouraging digital and cashless transactions.
Over the past few years, skimmers have been reported to have stolen PIN cards of debit cards for unsuspecting consumers using hidden cameras and electronic devices. The cash restriction is being made with the objective of minimizing these losses should a customer become a target of skimming.
PK Gupta, SBI MD said that most of the withdrawals are of small token and hence their analysis showed that Rs 20000 should be adequate for most customers. They want to explore whether reducing limit could help in controlling fraud.