Central Bank Shrinks Daily Cash Withdrawal Limit

Oct 11 , 2020

The National Bank of Ethiopia (NBE) has pegged the maximum daily cash withdrawal limit lower for individuals from 200,000 Br to 50,000 Br. The circular has also extended to the institution's daily cash withdrawal limit, which has been reduced to 70,000 Br from 300,000 Br. The monthly cash withdrawal limit has remained the same at one million Birr for individuals and 2.5 million Br for institutions. The cash withdrawal limit is a move from NBE to control cash circulation outside of banks, manage liquidity in the financial sector and reduce printing costs. A few months ago, the regulatory bank relaxed the cash withdrawal limit after a recommendation from the Ethiopian Bankers Association. It then fully removed the limitation rule for refugee and disaster management agencies, charity organisations, government institutions, as well as defence and security bodies. The removal of the limit was also conditionally extended to embassies and credit cooperatives. The organisations are required to produce documents citing reason and lack of easily accessible financial institutions or service access in their vicinity.