The Bank of Zambia has banned the withdraw of cash more than K25,000 in a bid to promote the usage of electronic banking.
According to a circular dated October 14, 2016 and made available to Zambian Eye, BOZ has also asked all commercial banks to limit the amount of money that can be withdrawn through cheque.
The circular which was signed by Bank of Zambia Deputy Governor- Operations, Bwalya Ngandu, is aimed at promoting the use of electronic payment methods.
Ngandu said in the implementation of the new limits, splitting of cheques in an effort to circumvent the prescribed limits is prohibited as it violates the spirit of this directive.
“Split cheques will attract a penalty fee on the paying bank of 25% of the value of the split cheques up to a maximum of two hundred thousand penalty units as stipulated in Section 43 of the National Payment Systems Act of 2007,” the circular read.
“The fee will be paid to the National Electronic Clearing House Limited and will be collected on a monthly basis through the paying bank’s settlement account held at the Bank of Zambia. These limits shall take place 180 days from date of this circular,” Dr Ngandu said.
He warned that failure to comply with the above requirement could in addition attract penalties in line with Section 43 of the National Payment Systems Act of 2007.