New Delhi: The largest lender State Bank of India has reduced the ATM cash withdrawal limit from Rs 40,000 to Rs 20,000 per day, as per a financial daily report.
The new cash withdrawal limit will come into effect from October 31, the Economic Times has reported.
The move has been aimed at clamping down on the rising financial frauds that customers have been lately complaining of, the paper said.
“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 SBI official told Economics Times.
Notably, in August, SBI had asked its customers to get their ATM-cum-debit cards with magnetic stripe replaced with the one with ‘Europay MasterCard Visa’ chip before December 31.
The Reserve Bank on India had asked banks to issue only chip-based and personal identification number-enabled debit and credit cards to protect customers from frauds.
EMV chip card protects against counterfeit (skimming) card fraud. EMV chip card and PIN protects against both counterfeit (skimming) and lost and stolen card fraud.
At June-end, SBI had 28.9 crore ATM-cum-debit cards, of which large number of them are chip-based. Several other banks, too, are replacing the magnetic stripe cards with EMV-equipped cards.
It is easy to identify if a card has EMV or not. EMV cards have golden chip embedded on the card on the front side.
With PTI Inputs