National Bank of Ethiopia (NBE) has issued a new directive that limits cash withdrawal form commercial banks effective May 19, 2020.
In a briefing on Tuesday Dr Yinager Dessie, Governor of NBE told journalists that the directive would help to put in place proper cash circulation, combat tax evasion and illegal money transfer.
The new directive, which is applicable to all banks and micro- finance institutions, allows individuals to withdraw up to $ 6250 in a day and $31.250 in a month at maximum.
Meanwhile, companies will be allowed to withdraw up to $ 9375 in a day and $78,125 in a month.
Individuals or businesses that need above the stated 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.
MG/abj/APA