From today, SBI will reduce the daily cash withdrawal limit for account holders who have Classic and Maestro debit cards. The daily cash withdrawal limit on SBI Classic and Maestro debit cards will get reduced to Rs 20,000 from Rs 40,000. “Daily cash withdrawal limits for Classic and Maestro debit cards reduced from Rs 40,000 to Rs 20,000 per day with effect from 31st Oct 2018,” SBI said in its website. Those having higher daily cash withdrawal limit can apply for other debit card variants that come with a higher daily cash withdrawal limit, SBI added.
Here are 5 things to know about SBI’s latest rule on cash daily withdrawal:
1) The withdrawal limit on other SBI debit cards remains unchanged. SBI’s Gold and Platinum debit cards, for example, have a daily ATM withdrawal limit of Rs 50,000 and Rs 1 lakh, respectively. SBI, India’s largest bank, has a network of nearly 22,500 branches and 59,000 ATMs. As of March 2018, SBI had over 40 crore active customer accounts.
2) A top SBI official said that the bank has reduced the daily cash withdrawal limit on Classic and Maestro cards to reduce fraudulent transactions at ATMs and encourage digital and cashless transactions.
3) “We analysed all the ATM transactions and we found that most of them are less than Rs20,000 a day. In case of frauds reported to us, we found that in all such cases withdrawals of Rs 40,000 (the maximum) have happened. So, this is basically to protect the customers and secondly, we want that more digital transactions should happen,” said SBI Managing Director PK Gupta.
4) Meanwhile, SBI has been asking its account holders who have magstripe debit cards to switch to chip-based debit cards. SBI is replacing the cards free of cost. SBI account holders can apply online or visit their branches for the new debit card. Chip-based EMV cards come with more security features than the magstripe debit cards. Those holding magstripe debit cards are required to change their EMV chip debit cards by the end of this year, according to RBI’s guidelines.
5) Meanwhile for the benefit of account holders, SBI has allowed the submission of Form 15G/H at any SBI branch, instead of just the home branch. SBI also allows submission of Form 15G/H online. A home branch is the branch where a customer has a bank account. All other branches of the bank are non-home branches for the customer. Banks have to deduct TDS when interest income crosses a certain threshold in a financial year. Form 15G and Form 15H can be submitted to make sure TDS is not deducted on your income. Form 15H is for senior citizens. SBI has also removed the limit on the amount that can be deposited in a non-home branch. Earlier the limit was Rs 25,000.
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