The big banks of South Africa announced stricter daily limits on cash withdrawals with the bank cards for the customers. The banks made these changes, expected to affect millions of account holders nationwide, to reinforce their focus on stronger security, to reduce crimes targeting cash, and to seek promotion of digital banking in the country.
Implications of the New Limits on Cash Withdrawals
From 2 February many cards will be affected by lower daily cash withdrawal limits from bank accounts, particularly at ATMs and retail cash-back points. While varying among different banks and the nature of accounts, customers may discover they are not able to literally have large sums of their money in cash on a given day if prior arrangements are not made. The banks clearly stated that these limits are naturally activated as a security measure to protect the customer from any chances of being defrauded or mugged.
Reasons Banks Are Setting Tougher Cash Limits
After frodbast affecting cash cards, ATM attacks, and heists of cash vans, banks say they have kept this decision limited so that financially very little is siphoned from the account of a compromised or stolen card. The move is meant to also suit the country’s continued gradual transition to digital payments, mobile banking, and card-based transactions.
Most Harmed by the Change
The verdict is largely expected to make bigger ripples on people who are used to heavy cash dependence although this will also include the senior citizens, those with grant monies, informal traders, and most probably residents from the rural areas. The concerned banks, however, have informed that it is not the end of the road for customers who can use multiple transactions-passing some hours or steward switches in transactions.
Suggestions to the Customers
UPDATING WITHDRAWAL LIMITSCustomers are encouraged to visit their bank’s website or app or call the customer helpline to ascertain the updated withdrawal limits. It is possible to request a temporary increase in these limits on specific grounds, subject to the bank’s approval and security check.
Impact on Payroll and Salary Payments
Of course, the new rules do not affect any payments made like salaries, SASSA grants, etc. These will still be paid into accounts as usual. The only thing that has changed is transactions that can be handled via ATMs.
Report-Forwarding
The way forward in banking will involve some automation, according to the promise made by one of the banks in SBI to Live News. Prospective customers have also been asked to inform themselves before transacting, as there would be countless changes made to the whole banking system for the convenience of the digital era.