BML reverses new foreign transaction limit

Bank of Maldives (BML) has reversed its decision announced earlier today to further limit foreign transaction limits imposed on its credit and debit card users.

"Changes to card limits for foreign transactions announced on 25th August 2024 have been reversed based on instruction from our regulator, the Maldives Monetary Authority," the bank's notice said.

BML first announced its decision suspend foreign transaction allowances to its customers who have their debit cards connected to Maldivian Rufiyaa accounts as the card's primary account, at around 10:30 hrs this morning.

This sparked public outrage on social media as well as other platforms with Maldivian students studying abroad, small business owners and other members of the public expressing their concerns over the decision.

Reports say that members of the media spotted BML's CEO Karl Stumke leaving the President's Office following a meeting later today, at around 13:00 hrs.

Announcing the removal of dollar support on foreign transactions via the bank's debit cards connected to Maldivian Rufiyaa accounts from USD 750 for international students and USD 250 for other customers, BML said that these changes were made in response to the escalating usage of foreign currency spend on cards and the static sale of foreign currency to the bank.

"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," BML's CEO Karl said in a statement issued by the bank.

“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.”

With this justification, BML also announced that credit card transactions for foreign purchases would also be cut down by 90 percent. However, all of it's earlier decisions from today were reversed in the afternoon as instructed by MMA.

BML announces card limits for foreign transactions

The Edition