The government has stated that its decision to increase the credit card and debit card withdrawal or usage limit for Maldivian students abroad is the first phase of the overall initiative, and similar ease will be extended to other customers in the future.
The government announced its decision on Sunday, December 24, of increasing the card limit for students in foreign countries effective from February 1, 2024. With the change, students would be able to withdraw a maximum of USD 1,200 per month from the Bank of Maldives (BML) credit and debit cards.
Previously, students abroad had a maximum monthly withdrawal limit of USD 750.
Speaking at a press conference held at the President's Office, Principal Secretary to the President on Public Policy, Abdulla Nazim Ibrahim, expressed concern about the difficulties faced by students studying abroad, who are currently only able to withdraw USD 750 monthly.
To address the issue, Nazim said that the cabinet discussed the matter on Sunday and decided on increasing the limit.
The removal of the US Dollar limit was one of the key pledges of President Dr. Mohamed Muizzu.
In response to a media question about the government's plan on extending the same ease for others, Nazim assured that the state will be carrying out the discussions and relevant work through multiple phases to facilitate the same withdrawal limit extension for other Maldivians residing abroad.
The first phase involves extending this limit increment for students abroad, whether on government-facilitated scholarships or personally funded.
"... relevant discussions would precede on making a decision regarding others," Nazim.
In another response to media queries on Dollar-related transactions faced by small to medium businesses and other Maldivians residing abroad, Nazim assured that the government aims to facilitate the same ease for everyone. However, the cabinet chose a phase-based approach considering the Dollar constraints and the expected economic impact from an impulsive and holistic change.
Meanwhile, BML has been revising and increasing the usage limit after initially restricting online transactions in response to the Covid-19 pandemic. The last revision of the card limit occurred in 2021, with the limit for online transactions using credit cards set at USD 750.
Debit cards still carry a limit of USD 250 for foreign transactions each month.
During his presidential campaign, Dr. Muizzu promised to increase the card limit to twice the current limit within the first three months of his presidency. He pledged for a complete omission of the card limit eventually after increasing the limit through phases.
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