MUMBAI: State Bank of India (SBI) has halved cash withdrawal limit on its ATM cards ahead of the festival season citing fraud precaution as a reason. The existing daily cash withdrawal limit of Rs 40,000 under the bank's classic and maestro cards have been reduced to Rs 20,000.
"Given the increase in the number of complaints received by the Bank around fraudulent transactions at ATMs, and to encourage digital/cashless transactions, it has been decided to decrease the cash withdrawal limits of Debit Cards," the bank said in a statement.
SBI has asked all branches to inform customers of the changes as under the Banking Codes & Standard Board of India guidelines, at least 30 days notice has to be given to the customers for any change in terms and conditions or charges. According to banking sources, SBI's move to cut withdrawal limits will ease the burden on its cash logistics. In recent months banks are facing several new challenges in managing their cash logistics.