Region

Jurisdiction

Regulator

2020-01-01

Bank of Zambia Circular No. 26/2020 on Paper and Plastic Cash Banding and Packaging System

The Bank of Zambia has mandated all commercial banks to replace rubber bands with paper and plastic packaging for banknote banding. This change eliminates tension-induced damage to circulating notes, requiring institutions to procure compatible equipment ahead of regulatory deadlines. Branches in Lusaka and Ndola must comply by December 31, 2021, while those outside these cities must implement the system by June 30, 2022.

Zambia

Bank of Zambia

# Bank Of Zambia  
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS  

BOZ/EXEC/DGO/bcps/bp  
October 30, 2020  

CB Circular No. : 26/2020  
To : All Heads of Commercial Banks  

## PAPER AND PLASTIC CASH BANDING AND PACKAGING SYSTEM

We wish to notify all commercial banks that the use of rubber bands for banding banknotes in packets and bundles shall be discontinued throughout the industry and that a new method of using paper and plastic shall be adopted for this purpose. This is due to the numerous disadvantages observed with the use of rubber bands such as damage caused by the bands as a result of tension applied during cash handling. This has adversely affected cash processing activities and ultimately the lifespan of the banknotes in circulation.

The need to move to a more efficient method of banknote banding and packaging is aimed at improving the efficiency of the overall cash cycle operations and enhancing the longevity of our banknotes in circulation. In view of this, commercial banks and major cash handlers are expected to prepare for this transition by procuring the necessary equipment for implementation.

The dates for full compliance with the new cash banding and packaging system are as follows:

(i) All commercial bank branches within Lusaka and Ndola – December 31, 2021;  
(ii) All commercial bank branches outside Lusaka and Ndola – June 30, 2022.

In this regard, banknote shrink wrapping for deposits to Bank of Zambia shall be extended to all denominations.

Please be advised accordingly.

Francis Chipimo (PhD)  
DEPUTY GOVERNOR – OPERATIONS  

cc  
Governor  
Director – Banking, Currency and Payment Systems  
Director – Regional Office  

Bank Square, Cairo Road, P.O. Box 30080, Lusaka, Zambia Tel:+260-211-399303, 399300, E-mail: dgo@boz.zm. Web: http://www.boz.zm