The State Bank of India (SBI) has reduced the per day cash withdrawal limit for all Classic and Maestro Debit Cards holders to half of the existing amount. From today, the limit is restricted to Rs 20,000 from that of existing Rs 40,000.
The bank has announced that the daily Cash withdrawal limits for Classic and Maestro Debit Cards reduced from Rs 40,000 to Rs 20,000 per day with effect from October 31, 2018. If customers require higher daily cash withdrawal limit, they have to apply for a higher card variant. The decision has reportedly been taken by the bank to curb increasing instances of ATM frauds.
According to SBI Managing Director P K Gupta they have analysed all the ATM transactions and found that most of them are less than Rs 20,000 a day. In case of frauds reported to the bank, it was found that in all such cases withdrawals of Rs 40,000 have happened. So this is basically to protect the customers and secondly, they want that more such (digital) transactions should happen, he added.
Lately, the reports of ‘ATM cash-out,’ in which crooks hack a bank or payment card processor and use cloned cards at cash machines around the world to fraudulently withdraw millions of dollars in just a few hours had become quite rampant.
In its efforts to check cyber frauds, the RBI had in June 2016 issued guidelines for banks on setting up their own cybersecurity framework. Three months later, it again urged banks to follow the norms to tackle internet fraud. The regulator also formed an inter-disciplinary committee on cybersecurity in February 2017.