BML announces card limits for foreign transactions

Bank of Maldives (BML) has announced the suspension of foreign transaction allowances for cards linked to Maldivian Rufiyaa (MVR) accounts.

The bank said that this change was brought in response to the escalating usage of foreign currency spend on cards and the static sale of foreign currency to the Bank.

Key changes implemented:

- Existing debit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts

- New debit and credit cards: Suspension of allowance for foreign transactions for cards linked to MVR accounts

- Existing Standard and Gold credit cards: Monthly limit for foreign transactions reduced to USD 100

The monthly foreign transaction limit has been reduced by 85 percent from the previous cap, which was set at USD 700 for credit cards and USD 250 for debit cards, in an effort to offset the post-pandemic dollar shortage.

“The Bank has been monitoring card usage over the past year, and I have reiterated in numerous speeches and interviews that the Bank can only sell what it has been able to purchase. This year, we have purchased approximately USD 60 million in foreign currency from our customers, but card usage is threefold higher than that. The card usage impacts our ability to provide foreign currency support to our business customers, and we have this anomaly where the Bank provides 75 percent less foreign currency to the economic sector than we do for discretionary spend on cards dominated by travel and online shopping. We have to get the mix correct and ensure we are not squandering a scarce resource,” said Bank of Maldives CEO and Managing Director Karl Stumke.

“We have an obligation to protect our depositors and therefore cannot continue to sell more than we are able to purchase. Customers using their USD credit cards or debit cards linked to USD accounts are unaffected and can freely use up to the available account balance. For those with recurring international payments, it is recommended to have USD accounts as their debit cards' primary account for processing overseas purchases. Opening a USD account is straightforward. Customers can do it instantly via Internet or Mobile Banking without needing to visit a branch,” Stumke added.