ADDIS ABABA – Ethiopian Bankers’ Association (EBA) said National Bank of Ethiopia’s (NBE) new directive to limit the amount of cash withdrawal from banks is a right move as it encourages legal transactions and limits unnecessary possession of cash banknotes.
With the aim of curbing tax avoidance and illegal circulation of money, the National Bank of Ethiopia (NBE) on Tuesday introduced a directive that limits cash withdrawal from banks.
Association Chairperson and Commercial Bank of Ethiopia (CBE) President Abbe Sano said that the public should not be confused about the new directive.
Indicating that it is common worldwide, Abbe said Ethiopia is even late in introducing the directive. “It was technological limitations that hindered the country from introducing the directive earlier,” he said.
“Currently, there are various options for easy money transaction including mobile and online banking, ATM and others,” he added.
Currently, majority of fund transfer is already being completed through Account to Account Transfer and hence the new directive would not have an impact in terms of the volume of transactions, according to him.
He also said there are exceptions where individual customers and companies could withdraw cash providing they have convincing reasons.
For his part, Association Board Member and Zemen Bank President Dereje Zebene said that the directive will accelerate modern transactions in the country.
The new directive is also common in other countries. “It is not also allowed to withdraw a large amount of money in most countries of the world,” he emphasized.
The measure will also help to build a strong financial system, encourage saving, and curb terrorism and illicit financial transactions. Dereje said.
The Ethiopian Herald May 21/2020
BY TEWODROS KASSA
