Maldives Monetary Authority (MMA) has announced the new limit for daily cash withdrawals at MVR 200,000, a measure Bank of Maldives (BML) says they are preparing to implement after 31st of December 2020.

These measures come at a time where the bank is making a committed effort to encourage more digital and electronic transactions for both personal and commercial finances among the public.

Announcing the decision, MMA said that such steps could help decrease the various risks businesses face when transferring, withdrawing, claiming and transporting large sums of money as cash.

This is the first time the central bank MMA has set such a limit for daily cash withdrawals in the Maldives, though individual banks have set limits for withdrawals and transfers in the past. MMA announced the decision to introduce the MVR 200,000 withdrawal limit earlier this month, adding that banks must follow this policy starting from the 31st of December 2020.

BML introduced similar measures for foreign transactions earlier in September, where a USD 250 per month limit was placed on cards along with changes to their incoming credit process for USD accounts from online overseas money transfer platforms.

The national bank said the foreign transaction limit was introduced due to the pressure on dollar liquidity and to sustained dollar outflow, following “disruption to tourism activities and the subsequent decline in foreign exchange earnings.” BML maintains that this is “a temporary measure” taken due to the Covid-19 pandemic’s hard hit on the local economy, and that it will be reversed “when the situation allows."