NBE limits cash withdrawal

Addis Ababa, May 19, 2020 (FBC) –A directive issued by the National Bank of Ethiopia (NBE) limiting cash withdrawal took effect today, May 19, 2020.

Dr Yinager Dessie, Governor of NBE told journalists that the directive would help to put in place proper cash circulation and combat tax evasion.

The new directive, which is applicable to all banks and micro- finance institutions, allows individuals to withdraw up to 200,000 birr in a day and one million birr in a month.

Meanwhile, companies will be allowed to withdraw up to 300,000 birr in a day and 2.5 million birr in a month.

Individuals or businesses that need above the cash limit for a transaction or other purposes can make payments from account to account, in cheques or CPO, he said.

If any bank or financial institution is found flouting the directive, it will face a 25% penalty of the total payment it has made, according to the governor.