BoZ Says Stay Safe, Go Cashless

The Bank of Zambia (BoZ) is acting to try and mitigate the impact of the Covid-19 pandemic.

Measures announced include the removal of transaction and balance limits on agents and corporate wallets and an increase in the limit for individuals.

In additional, charges on person-to-person e-money transactions of less than K150 have been suspended from now until the end of April.

By taking steps to reduce the number of cash transactions in the economy and support mobile money transactions, the Bank hopes to reduce transmission through the handling of cash.

Setting out the steps the Bank stated:

“In the wake of COVID-19 (coronavirus), the Bank of Zambia in consultation with commercial banks and payment service providers, wishes to announce a set of measures aimed at reducing cash transactions and facilitating increased use of mobile money transactions. The immediate objective is to reduce the risk of transmission of COVID-19 through the handling of cash.

The following measures have been adopted and will apply with immediate effect:

Electronic money issuers shall not charge for person-to-person e-money transactions valued up to K150. This will apply until 30th April, 2020.

Transaction and balance limits on agents and corporate wallets have been removed while those for individuals, small-scale farmers and enterprises have been adjusted as follows: 

Individuals Tier 1: Old limit 10,000, New Limit Per Transaction Per Day (‘K) 20,000, New Maximum Balance (‘K) 100,000.

Individuals Tier 2: Old limit 20,000, New Limit Per Transaction Per Day (‘K) 100,000, New Maximum Balance (‘K) 500,000.

Small scale farmers/Enterprises (not incorporated): Old limit 250,000, New Limit Per Transaction Per Day (‘K) 1,000,000, New Maximum Balance (‘K) 1,000,000.

The current Anti-Money Laundering and Countering Terrorism Financing (AML/CFT) measures will continue to apply.

In addition, the Bank of Zambia has also reduced the Zambia Interbank Payment and Settlement System (ZIPSS) processing fees. This is meant to increase the use of the Real Time Gross Settlement System.

Mobile money agents and the public are encourage to practice good hygiene as stipulated in the Ministry of Health guidelines. Combating the pandemic requires concerted effort from every Zambian.

Stay Safe, Go Cashless”