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Charges on money waived amid pandemic
Coronavirus has increased global financial institutions are expected to remove charges on mobile money transactions. This was through a directive of the Kenyan government through the country’s apex bank to encourage the use of mobile money.
The directive is expected to run from March 16 to April 30.
According to the order, there will be zero charges on all transactions up to Ksh 1,000. In addition to this, the mobile money transfer limit has been increased to Ksh 150,000. Subsequently, the daily limit is raised from Ksh 140,000 to Ksh 300,000. A monthly limit has also been stopped.
“While the extent of the adverse effects is still evolving, it is already evident that some of the impacts on customers may be severe,” CBK says in reference to how coronavirus might make it harder for borrowers to repay their loans in time.
Banks will start providing relief for borrowers on personal loans based on their circumstances. Those with loan repayment will be given an extension of up to one year. Corporate borrowers and Small and Medium Scale Enterprises are advised to contact their banks for this extension, in order to be better assisted.
The directive is not only expected to help reduce the exchange of cash from hand to hand, but it will also lessen cash circulation, thus, impacting the economy's cashless policy growth.
This move comes hot on the heels of a free M-PESA transaction policy aimed to promote the use the mobile money and not cash now that the pandemic is causing a stir in Kenya.
Airtel mobile money already adopted this mandate.