May 19, 2020
Addis Ababa: The National Bank of Ethiopia (NBE) issues a Directive which limits cash withdrawals for individuals and companies from commercial banks and microfinance institutions.
Briefing journalists, Dr. Yinager Dessie, Governor of the National Bank of Ethiopia disclosed that the Bank issued the directive in a bid to curtail illegal transaction, combat tax evasion and money laundering in the market system.
Accordingly, an individual can withdraw cash money up to 200,000 Birr a day, and 1 million Birr in a month, while companies are allowed to withdraw a maximum of 300,000 Birr a day, but not exceeding 2.5 million in a month.
The Governor underscored that individuals or companies that need to withdraw cash beyond the set limit for transaction or other purposes can make payments from account to account, in cheques, CPO or any other form of payment system.
The directive allows bank presidents to make exceptions under certain circumstances and reports such above the limit payment to NBE weekly, the Governor said.
Any bank or microfinance institution in Ethiopia, which violates the directive, will be fined 25 % of the amount it has paid in a penalty, he added
It was learnt that the new directive came into effect as of May 19, 2020.
The full content of the directive is posted at NBE website; www.nbe.gov.et
May 19, 2020