BI lifts ATM cash withdrawal limit to RP 20 million
Bank Indonesia (BI) has raised the cash withdrawal limit for chip-based ATMs to support spending amid ongoing emergency mobility restrictions (PPKM Darurat). The cap was lifted from the usual amount of Rp 15 million a day to Rp 20 million (US$1,374) a day. This limit will extend till the 30th of September this year. The higher limitation only applies to chip-based ATM cards that use chip-based ATMs.
The central bank will still maintain the limit of Rp 10 million on magnetic strip-based ATM cards and machines. This action is to prevent data skimming risks which is common in such technology.
BI has urged banks to update customers on the location of chip-based ATMs.
BI communications head Erwin Haryono said in a press release last week that the move is to aid the PPKM Darurat. The PPKM Darurat is the government’s initiative to reduce the surge in Covid-19 cases.
The PPKM Darurat initiative began on July 3rd due to a surge in the delta variant of the Covid-19 cases. The delta variant is more aggressive and contagious.
BI expects PPKM Darurat to reduce cash withdrawal capacities. BI expects this due to bank branch closures and ATMs are made inactive.
“We are expecting a rise in ATM cash withdrawals as people prepare for the PPKM Darurat,” wrote Mr Haryono.
According to BI data, cash withdrawal surged 61 percent to Rp 34.8 trillion compared to the same period last year. The travel ban in Indonesia meant more localised spending, particularly during the Hari Raya Aidil Fitri celebration period. BI has set aside more notes this year compared to last year. BI expects a 41.5 percent rise in cash notes required for 2021 compared to 2020.
In conclusion, Cash remains King in Indonesia, according to BI. The central bank would be wise to restrict withdrawals during the PPKM Darurat period.
