By: Madrama James
King News, Sept 18th 2024 – In a move aimed at stabilizing South Sudan’s economy, Governor Dr. Alic Garang announced Tuesday the implementation of a daily withdrawal limit for bank customers.
Individuals, public sectors, government spending agencies, and private cooperates will now be restricted across all channels at the Bank of South Sudan and all the commercial banks to withdrawing a maximum of 10 million South Sudan Pounds per day from their accounts
The decision was made following a series of concerning trends, including rising inflation rates and increased volatility in the banking sector.
During a press conference held at the Bank of South Sudan Conference’s Hall, Governor Dr. Alic Garang expressed his commitment to the financial digitalization system while minimizing risks associated with cash handling.
“Improving the financial services that includes different means of payment is key for us, its has not gone out from what we see today. This has been a drive finance policy, the Bank of South Sudan have been talking about. But we’ve also seen that having so many cash in the economy, bring so many risks, and it is inconvenience to the economy itself. Both to the customers, to the banks and the society as a whole,”
Governor Alic outlined six measures undertaken by the Bank of South Sudan. These include a daily withdrawal limit, the deposit or transfer of cash exceeding SSP 1O Million, and the encouragement of clients to conduct banking transactions.
Dr. Alic’s office also encourages commercial banks and mobile money agencies to implement their strategic regulations in accordance with the existing regulations governing their activities, among other things.
Financial experts have expressed mixed reactions to the move. While some believe it is necessary to prevent bank runs, others warn that it could further erode public trust in the banking system.
“We have been finding it difficult to encourage our customers to approach Digital payment, now that government is coming, the mandate authority, it will make our work easier,” said Francis Masegesta, MTN Mobile Money Chief Executive Officer. “We are operating in an environment where the mobile business is a bit ahead of the law so, in the same initiative of the National payment system, where you’re working on, we look forward for the expansion and proper legal framework that defines mobile money business,” another Mtn vintage officer expressed.
In response to concerns raised, the governor has directed state financial regulators to work closely with banks to ensure the achievement of set regulations.
“I would like to say that, let us work together. Let us collaborate. So, that you can achieve your bottom lines as an institution, so that we can achieve our bottom line which is providing services to our people and improving the banking sectors because, at the end of the day, the banking system provides finance, which increase the will for growth and development,” Alic encouraged the experts.
Banks and credit unions impose withdrawal limit to help maintain cash reserves and provide customers security.