Swedbank's head of retail banking, Tarmo Ulla, told ERR the bank has no plans to uniformly reduce cash withdrawal limits.

However, starting November 20, the daily withdrawal limit will be lowered to €700 for clients who have not withdrawn more than that per day with their debit card in the past 18 months.

"For clients whose behavior shows a higher need for cash, the limits will remain unchanged," Ulla said.

The change is intended to reduce security risks. Fraud schemes have become common in which criminals trick people into handing over their bank card and PIN codes, then attempt to withdraw the maximum possible cash.

"If a client does not actually use large sums, a high limit is an unnecessary risk," Ulla added.

Clients whose limits are reduced will still be able to raise them again through online banking or the mobile app if they wish.

Swedbank has previously noted that while earlier fraud schemes mainly focused on transfers, a new type of scheme began spreading in the second half of last year.

Typically, a fraudster first calls a person posing as, for example, a courier company, the Unemployment Insurance Fund or a service provider and obtains the victim's banking details. A second call then follows, claiming the first caller was a scammer and that to resolve the situation, the victim must confirm transactions or hand over their bank card and PIN code.

In some cases, the fraudster convinces the victim that their bank card is compromised and must be replaced. They are then asked to give the card and PIN to a courier or send it via a parcel machine.

Swedbank Latvia is taking similar steps. Latvian media reported Wednesday that the bank there will reduce the daily withdrawal limit to €750.

According to Ulla, limits in Latvia will not be lowered for everyone either, but only for those who, like in Estonia, have not withdrawn larger amounts in a long time.

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