The Central bank has responded to the COVID-19 pandemic by encouraging more cashless transactions. One way to reduce spread of the virus is to reduce contact with possibly contaminated notes.
The cashless mode of payments is key in these times. The Bank of Ghana (BOG) has introduced free mobile money transaction fees and account limits to facilitate cashless transactions.
Free Mobile Money Rates and Higher Limits
The Bank of Ghana has agreed with banks and mobile network operators on measures to facilitate more efficient payments and promote digital forms of payments for the next three months, subject to review, effective March 20, 2020.
These are:
(i) All mobile money users can send up to GH₵100 for free (excluding cash out). This includes sending to a recipient on the same network, or another network via the interoperability platform.
(ii) All mobile phone subscribers are now permitted to use their already existing mobile phone registration details to be on-boarded for Minimum KYC Account.
(iii)The daily transaction limits for mobile money are increased as follows:
| DAILY TRANSACTION | ||
| KYC Account Type | Current Limit | New Limit |
| Minimum KYC Account | GH₵300.00 | GH₵1,000.00 |
| Medium KYC Account | GH₵2,000.00 | GH₵5,000.00 |
| Enhanced KYC Account | GH₵5,000.00 | GH₵10,000.00 |
(iv) The mobile money wallet limits are also increased as follows:
| MAXIMUM ACCOUNT BALANCE LIMITS | ||
| KYC Account Type | Current Limit | New Limit |
| Minimum KYC Account | GH₵300.00 | GH₵1,000.00 |
| Medium KYC Account | GH₵2,000.00 | GH₵5,000.00 |
| Enhanced KYC Account | GH₵5,000.00 | GH₵10,000.00 |
(v) The revised aggregate monthly transaction limits are as follow as:
| DAILY TRANSACTION | ||
| KYC Account Type | Current Limit | New Limit |
| Minimum KYC Account | GH₵300.00 | GH₵1,000.00 |
| Medium KYC Account | GH₵2,000.00 | GH₵5,000.00 |
| Enhanced KYC Account | GH₵5,000.00 | GH₵10,000.00 |
The Bank of Ghana is closely monitoring developments as regards the impact of COVID-19 on the domestic economy, and will not hesitate to convene an emergency meeting to deliberate on other measures, if required. They would find out how the free mobile money transactions and the new account limits has impacted the cash transaction economy. The Kenyan government took this step some 3 days ago.
The Kenyan Government
On Sunday, President Uhuru Kenyatta asked banks and mobile money providers to consider reducing costs of transactions to allow customers use cashless modes of payment as part of the measures to prevent the transmission of Covid-19.
Kenya’s telco Safaricom Plc on Monday waived fees on its mobile money transfer service M-Pesa for transactions below Ksh1,000 ($10).
