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Myanmar Banking Security Measures Under Scrutiny
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YANGON, MYANMAR - The Central Bank of Myanmar (CBM) has issued a series of directives to tighten its grip on banking security in recent months. These measures aim to curb currency shortage and promote digital payments in the country.
Key Initiatives by the CBM
- Extension of Minimum Reserve Requirement: Banks are required to maintain a 3.5% reserve ratio of their total Myanmar Kyat (MMK) deposits made by customers until September 30 this year.
- Failure to comply will result in penalties as per Directive 12/2016.
- Promotion of Digital Payments: Citizens and businesses are urged to adopt digital payments starting March 1 this year.
- The directive sets out specific instructions for banks and non-bank financial institutions, including a limit on card and cash withdrawals:
- Individuals can withdraw up to MMK 2 million per week.
- Companies can withdraw up to MMK 20 million per week.
- The directive sets out specific instructions for banks and non-bank financial institutions, including a limit on card and cash withdrawals:
Enhanced Access to Banking Services
- Reopening of Bank Branches: The CBM has ordered banks to reopen branches in states and regions from March 8 with necessary security arrangements in place.
- Prioritization of Cashless Payments: Banks are instructed to prioritize cashless payments for wage and salary disbursements after verifying the balance in the account.
Caution Against Illicit Activities
- Warning against Trading Cash for Profit: The CBM has cautioned individuals against trading cash for profit during the ongoing currency shortage.
- This practice is deemed a punishable offense under Section 99(b) of the Central Bank of Myanmar Law.
Expert Views on the Success of these Initiatives
The measures are seen as an attempt by the government to stabilize the banking system and promote financial inclusion in the country. However, experts point out that the success of these initiatives will depend on their effective implementation and public awareness.