The aim of the financial inclusion account amendments is to enhance formal economic activity and provide flexibility to customers.. Details.
Advertise Central Bank of Egypt Raising the daily and monthly maximum limits for transactions on financial inclusion accounts by 50%.
And decided Central Bank of Egypt Amending the maximum limits for dealing on financial inclusion accounts for individuals and companies, which includes increasing the maximum daily and monthly limits, while the limits for dealing on prepaid cards and mobile payment services remain unchanged, according to a circular letter addressed to banks operating in Egypt.
The goal of increasing withdrawal limits for financial inclusion accounts
The Central Bank of Egypt said in its letter that: “Within the framework of facilitating the implementation of financial transactions, and simplifying procedures for the targeted groups to be included in the banking system, and in coordination with the Anti-Money Laundering and Terrorist Financing Unit, a decision was made to increase the daily and monthly maximum limits for dealing with financial inclusion accounts only.”
Financial inclusion account adjustments
The decision included Central Bank of Egypt By amending the maximum limits for dealing on financial inclusion accounts for individuals and companies, the total withdrawals, outgoing transfers, and any deductions or purchases were raised, as the daily maximum limit for individuals was raised from 60 thousand pounds to 90 thousand pounds, while the monthly maximum limit was raised from 200 thousand pounds to 300 thousand pounds.
As for micro-enterprises and establishments of category “A”, which have documents or headquarters or are verified by any means, the daily maximum limit for transactions has been raised to EGP 120,000, instead of EGP 80,000, and the monthly maximum has been increased to EGP 600,000, instead of EGP 400,000.
As for companies, micro-enterprises and self-employed professionals who do not have activity documents or a “Category B” headquarters, the Central Bank left the determination of the maximum account balance value to each bank, and the bank raised the daily maximum for this category to 90 thousand pounds from 60 thousand pounds, and increased the monthly maximum to 300 thousand pounds from 200 thousand pounds.
Promoting Financial Inclusion in Egypt
The Central Bank of Egypt’s amendments to the maximum limits for dealing with financial inclusion accounts for individuals and companies aim to support financial inclusion in the country, enhance formal economic activity, and provide flexibility for individuals and companies in managing their financial accounts.
The amendments also encourage target groups to open bank accounts, which leads to achieving economic development goals and enhancing the role of the banking sector in economic growth.
Interest rates held steady for sixth straight time
The Monetary Policy Committee of the Central Bank of Egypt concluded its last meeting of 2024 last Thursday, keeping interest rates unchanged. The decision was in line with analysts’ expectations, and represents the sixth consecutive time that the Monetary Policy Committee has decided to keep interest rates unchanged.
The overnight deposit and lending rates are 27.25% and 28.25% respectively, while the central bank’s main operation rate and credit and discount rate are 27.75%.
Interest rates have not changed since the large 600 basis point increase approved by the Central Bank, in an exceptional meeting of the Monetary Policy Committee last March, which coincided with the decision to float the Egyptian pound and the agreement on a larger financing package with International Monetary Fund, shortly after.
