Mahesh Acharya 

The recent decision of nine commercial banks to reduce debit card transaction limits has affected their customers in India. The worst affected are students, patients and travellers from Nepal. The banks took such a step after incidents of illegal cash withdrawals from Nepal Investment Bank Limited (NIBL) using fake debit cards. In connection to these incidents, three Indian nationals have been arrested and brought to Kathmandu for further investigation. The banks have halved the limit of withdrawal from Indian ATMs to IRs 5,000 per day from IRs 10,000 per day. Prior to this, NIBL had also lowered the limit to IRs 2,000 for a few days before hiking it to IRs 5,000. As the banks allow 10 transactions a month, a Nepali possessing debit/credit cards of these banks can withdraw IRs 50,000 in total, against the past limit of 100,000 per month. The banks have said the new limits will be imposed for a few days until their information systems are reviewed. Nepali patients who reach different Indian cities in search of quality treatment usually spend a lot of money which they pay through cards. But the limit on payment through cards has hit them hard. The new provision has lowered the card payment limit to NRs 50,000 from NRs 300,000. “The time for paying flat rent and education fees is approaching. Due to the reduction in the limit, we have been pushed into serious troubles,” a chartered accountancy (CA) student Sanket Sapkota told the Post. Another CA student Pravesh Acharya said the recent decision of the banks has even created problems in maintaining daily expenses and buying the most-needed materials for studies.

The recent decision of nine commercial banks to reduce debit card transaction limits has affected their customers in India

Published on: 1 April 2013 | The Kathmandu Post