Bank ATM suspension, withdrawal limit spark concerns
Despite the fact that the ATM withdrawal limit is a crucial component in financial management, most citizens consider it merely an inconvenient restriction, a notion deferred by a local economist
By Aguok Chok
The suspension of the local currency (South Sudanese Pounds) withdrawals from ATMs and restrictions on daily withdrawals by commercial banks have sparked concerns among citizens.
Despite the fact that the ATM withdrawal limit is a crucial component in financial management, most citizens consider it merely an inconvenient restriction.
In an exclusive interview with The City Review, senior economist Dr. Abraham Maliet overlooked the impact, saying only a small number of citizens use ATMs to access their money.
“Those of us who are using ATM to draw money are not many, are very few. The majority of us don’t have an ATM and some even have no bank accounts.”
For Emmanuel Ayok Akol Wol, who shared his views in an exclusive interview with The City Review newspaper about the suspension of ATM withdrawals and the daily withdrawal limit of SSP 50,000 in Equity Bank and other commercial banks.
Dr. Maliet explained that the banks introduced the withdrawal restrictions to ensure fair access to cash.
“Some of them withdraw too much. Like if it is not limited, people can withdraw so much money and they do not know where to put that money, because that money never comes back to the system,” Dr. Maliet said.
“Our local market does not return the money to the banking system. So, the banks saw that in order to have equity for everybody, they have to introduce restrictive measures. The restrictions were cut from SSP 200,000 a day, and reduced by SSP 50,000.”
According to him, by limiting withdrawals, banks encourage the use of digital payments.
“This is allowing other ways of transaction, like the digital platform. You can buy your goods in the shop using the digital platform. When you go to a shop or a supermarket, you are able to pay digitally. The money can be transferred to them through electronic payment. It doesn’t mean that there is no transaction going on.”
He further stressed that the restrictions are temporary and subject to review, “Equity Bank, for example, has not suspended it. This is just the reduction in the review. When they do an intervention, they are reviewing it to see what the impact is. Probably today or tomorrow, when the Bank of South Sudan releases more cash, then that thing will be elevated.”
However, he admitted that cash-dependent businesses and families are affected in the short term.
“Individuals that depend on daily cash transactions are affected. There is great impact. However, it may not be a long-term impact. The only small cash now is affected, but it is something that will have to be absorbed for the next couple of days, and then it will be over.”
Addressing fears that restrictions would push people to hoard cash at home, Dr. Maliet warned against it. “Even if you withdraw your money and keep it in your house, you will be forced to go to the market, and you will be paying that money to buy goods and services.”
He said keeping the money from the formal banking system is causing great harm to the economy, not as compared to the restrictions.
“Don’t keep money at home. It’s not safe. Anything can happen to the money. So, keep the money in the bank.”
Meanwhile, Emmanuel Ayok Akol Wol, a concerned citizen and customer, has expressed frustration with the suspension.
“The suspension is greatly affecting my operations. There is a kind of worry. People like me who transact with cash are worried because at the time when you need to the money to handle your pressure issues, it is unavailable,” Ayok said.
He added that there are no real alternatives. “In fact, at the moment, there is no alternative because I used to get my little money, which used to be sent to the account every month. The situation is now different.”
Ayok said they are suggesting that his institution stop sending the money through the bank because they will not be allowed to withdraw it all.
“In fact, I cannot trust this directive by Equity Bank 100% simply because of that act. We open our accounts in this private bank simply because we know they are the most trusted when you have your cash there, and then you are kept properly until you need it. But now there is no difference between the public bank and the Equity Bank,” Ayok claimed.
“The management of Equity Bank should listen to our decision-making and suffering because we cannot continue with them without getting our operations. They have to reverse their decision to stop this withdrawal limit so that people can continue with their normal lives.”
He continued that Juba, everything depends on money, and if your money is suspended, there will be no way of living.
However, Dr. Maliet urged citizens to adapt to digital transactions and keep trust in banks.
