The National Bank of Ethiopia issued a directive limiting the amount of cash withdrawal allowed, effective May 19, 2020. As per the directive, individuals can withdraw a maximum of 200,000 birr per day and a million birr per month. Companies, however, can withdraw up to 300,000 birr per day and 2.5 million birr per month.

Yinager Dessie (Ph.D.), Governor of the National Bank, said the directive is needed to enact proper cash circulation and combat tax evasion.

However, the limit does not apply to payments made via account-to-account transfers, cheques, or CPO.

The directive applies to all banks and microfinance institutions. Any bank or financial institution that fails to abide by the limitations set by the directive faces a penalty of 25 percent of the total payment made, the governor pointed out.

Source: FBC