Halving of ATM withdrawal limit by SBI irks customers

The reason given by the SBI for the move was to increase digital transactions and reduce ATM-related frauds. “When the SBI bank staff themselves ask us to use ATMs for all withdrawals as it will ease business at the branch, what is the need to reduce daily withdrawal limit?” wondered federation president K Sathiyamoorthy. 

“When other nationalized banks like Indian Bank continue to maintain the daily withdrawal limit at Rs 50,000, the SBI move to reduce it sounds ridiculous and smacks of arrogance as the bank thinks that it can get away with all its decisions” he added. 

It may be recalled that the bank had already lowered the number of withdrawals per day. “Under the new norm, if a customer wants to withdraw Rs 1 lakh, he or she will have to use the ATM for 5 days which will be a tim-consuming process. Not only will it defeat the purpose for which the person needs the money, it will also cause unnecessary stress” adds SM Nedumaran a local resident.

“The SBI move will only result in bank branches getting crowded again. The move goes against the basic principle for which ATMS were resorted to in the first place – reducing crowds at branches” Sathiyamoorthy added. 

MR Kumar of Sathuvachari said “if fraud is the reason then counter action must be taken and not reduce withdrawal limit.” If the rise in number of ATM frauds was really the reason as claimed by the bank, then they should close ATMs totally, added a government official.

If the move continues, then most customers, who were already annoyed with the lack of service in leading nationalized and private banks, would switch over to smaller institutions, which offer better service, cautioned Sathiyamoorthy. 

When asked about the move, an SBI official, requesting anonymity, said “we cannot comment as the decision was taken by the bank’s top brass after considering various issues.”