Regulatory Alerts2015-01-01
Implementation of the New Cash Management System
The Bank of Zambia has instituted new cash withdrawal limits for commercial banks effective September 1, 2015. Middle and high value denominations now require minimum withdrawals of K20 million in Lusaka and K10 million regionally, while lower denominations remain unrestricted. These caps exclude transactions at Bank of Zambia Sub chests and do not affect cash deposits across the bank's Head Office, Regional Office, or sub locations.
Bank of Zambia OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
BOZ/EXE/DGO/bcps/bp
August 5, 2015
CB Circular No.: 11/2015
TO: All Heads of Commercial Banks
IMPLEMENTATION OF THE NEW CASH MANAGEMENT SYSTEM
Further to our CB Circular No. 24/2014 where all commercial banks were advised of the phased approach in implementing the New Cash Management System, the Bank wishes to advise all commercial banks that effective 1st September, 2015, limits on cash withdrawal will be effected. This measure is in line with the continued process of making the Bank of Zambia assume the role of a wholesaler in the cash market.
The Bank will allow minimum cash withdrawals for middle and high value denominations (K100, K50, K20, and K10) as follows:
i. K20 million for Lusaka transactions; and ii. K10 million for Ndola, Regional Office transactions.
There will be no lower limit for cash withdrawals in the lower denominations (K5, K2, K1, 50N, 10N and 5N). These changes will not affect cash transactions at the Bank of Zambia Sub chests.
The Bank of Zambia will not implement any limits on cash deposits made at Bank of Zambia Head Office, Regional Office and Sub chests.
(Signed) p.p. Bwalya K. E. Ng’andu (Dr) DEPUTY GOVERNOR – OPERATIONS
Cc Governor Senior Director – Supervisory Policy Acting Director – Banking, Currency and Payment Systems
Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: 260-211-226844, 228888 Fax:260-211-237070 E-mail:dgo@boz.zm.Web: http://www.boz.zm