On 12 June 2024, the Central Bank of Myanmar (“CBM”) issued a letter “Amending the Allowed Amounts for Carrying Out Digital Payments and Transactions”. This initiative is part of the CBM’s ongoing effort to support the government’s shift to a digital economy by updating policies and promoting non-cash payments. Banks and mobile financial services providers must use the CBM-NET System, which includes the Real-Time Gross Settlement (RTGS) for large payments, the Automated Clearing House (ACH) for small payments, and the Digital Payment Switch for QR-based transactions. These measures are designed to enhance the efficiency and security of digital transactions nationwide.
Effective 12 June 2024, the fundamental changes include revised transaction limits as follows:
- Person-to-Person (P2P) Payments: Limited to 1 million Kyats per transaction and a maximum of 5 million Kyats daily.
- Person-to-Merchant (P2M) Payments: Maximum daily transaction amount of 10 million Kyats, covering sectors like gold shops, electronic stores, construction material stores, and healthcare centres.
- Mobile Money Accounts: Maximum balance limit of 10 million Kyats, with excess funds to be transferred daily to a linked bank account.
- Mobile Banking Payments: P2P and government payments of up to 10 million Kyats are integrated with the CBM-NET ACH Function.
- Large Payments: 10 million Kyats or more transactions must use the CBM-NET System B2B Function.
- ACH Allocation: Banks must maintain sufficient Debit Cap funds for uninterrupted access to the CBM-NET ACH Function.
This letter also emphasizes systematic verification and compliance, which includes measures to prevent misuse of Consumer Wallets for merchant transactions by enforcing transaction limits and requiring specific payment details. Banks and mobile financial services providers must scrutinize merchant registration information to verify their legitimacy.
Additionally, banks and mobile financial services providers must follow Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures to build public trust and prevent financial losses. Non-compliance will result in administrative actions under Section 154 of the Financial Institutions Law, including warnings, fines, operational restrictions, and suspension or termination of duties for those involved.
All banks and mobile financial service providers should review these updates carefully and ensure full compliance with the new regulations, as adherence to these guidelines is crucial for maintaining operational efficiency, avoiding administrative penalties, and supporting Myanmar’s transition to a digital economy. Should you have any questions or require further assistance, please do not hesitate to contact our office.
