Over the counter Cash and Cheques limits comes into effect

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Bank of Zambia
Bank of Zambia
The Bank of Zambia (BoZ) has effected the changes limiting the amounts clients are supposed to cash over the counter or transfer through the Electronic Funds Transfer System.

According to a communique from the Central Bank obtained by the ZNFU, effective 5 th July 2017, the BoZ and Commercial Banks will implement the new Item Value Limits on cheques and electronic funds transfer system.

The BoZ says, all local currency denominated cheques cleared through the Clearing House will not exceed K25, 000. Previously, clients were allowed to clear as much as K100, 000. Cheques presented over the counter will also not exceed K25, 000, previously limitless.

The Central Bank has also put a cap on the all foreign currency transactions cleared through Zambian systems or presented over the counter to USD5, 000. This also was hitherto limitless.

Direct Debits and Direct Credits Electronic Funds Transfers have, however, been increased from K50, 000 to K75, 000 and K100, 000 to K500, 000, respectively.

Last year in a circular dated 14 October 2016 signed by BoZ Deputy Governor- Operations Bwalya Ngandu, the Central Bank stated that the new system was aimed at promoting the use of electronic payment methods.

The Central Bank 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.”

And the National Pensions Scheme Authority (NAPSA) has warned that it will not be accepting cash and cheque payments above K5, 000 and K25, 000, respectively. This is according to information obtained by the ZNFU from NAPSA. NAPSA has also warned that cheque splitting is prohibited and will not accept any cheques
issued as such.

20 COMMENTS

  1. +6
    -1
    vote

    We in the diaspora are able to speak the truth about the issues concerning our homeland. Unlike our country men and women back home in Zambia, who are scared of police and state brutality!

    • +4
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      Cashless society, slowly implementing policies driving us towards 666 (Mark of the beast).

  2. +7
    -8
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    We stay in Zambia and do not experience what you imagine. Do not read wrong websites. Come home and enjoy with us.

  3. +6
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    Just wondering if this won’t affect business transactions at all levels. Thinking of Mr Farmer in the village who receives payments by cash or check. BOZ has not provided exceptional circumstances. Why limit the manner in which people have to get cash and how much? This is why people bury the money in the ground. It will just lead to that. This privately owned BOZ is up to know good

  4. +2
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    Please clarify are these daily limits or what? Am i allowed to pay say 1Million through two transctions of 500pin on different days.

  5. flag [email protected]
    0
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    there is also need to limit amounts involving cash transactions to avoid evading tax. Why do mwenyes refuse us paying thr atm cards? why carry as much as k20,000 to pay for items. lets learn from other countries.

  6. +2
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    Life under dictatorship. Tomorrow that dead boy lungu will tell you how to please your wife in bed. It seems pf is doing all it can to control every fibre of our lives. Remember that even Hitler fell. Lungus fall will be bad because I nez will personally torture him till death

    • 0
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      You, I can assure you, by the time this whole security issue is over, will see the inside of the dungeons!!!

  7. +5
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    To all you young bloggers that where born after 1991, I would like to let you know that KK tried this and it never worked. At first we all thought it would only affect business people and not us with some small money. Before long, there was a big shortage of cash in the country because either people were hiding money of keeping US dollars. Demand for dollars went up and everything became expensive. He tried to print more money but economy cashed. I hope we’re not repeating the same mistakes. And OMG, the long lines at the banks to withdraw cash from your salary were terrible. You were out of luck if your bank run out of cash. Try another day.

  8. +1
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    You have to understand why government is doing this. They are try to encourage electronic transactions and thus moving away from paper. Why cut me a cheque of 100,000.00 ZMW when you can transfer that straight to my account from your account? Simple and easy. But of course people are always scared even if there is nothing to be scared of. The only problem I see here is that it will affect negatively those people who used to take post-dated cheques as security for a service. For example those who lend money and would take a post-dated cheque of 35,000.00 for example as security for the loan they are giving will have to find other forms of security for their loans.

  9. +1
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    Time also to consider the supply side and take measures to activate the economy. Limitations on cash flows only doing more harm to SMEs and the commoner

  10. vote

    So far most measures have been aimed at the public and private sector, but so far no measures to control the government’s appetite for bank money as well as reckless politically driven spending.

  11. vote

    Lab 333-it doesn’t need regulations to do what you are suggesting but education. Secondly, we need to improve in technology for that to be a success. Just to check an email is so slow……then somebody adds EFTs. Teach people ans they will make their own choices and not via duress…TEKU MUKOBEKO TULI PLS

  12. vote

    I think I’m getting a Tarino next, and will start queuing for cooking oil tomorrow. The good old days are back

Comments are closed.