Bank of Maldives (BML) has announced an increase in its foreign transaction limit for MVR debit cards, raising the overseas point-of-sale (POS) limit and USD availability for travel and medical expenses, as per President Dr Mohamed Muizzu’s commitment.
The government stated that the adjustment aims to solve the difficulties faced by Maldivians in obtaining foreign currency.
The change, introduced to mark BML’s 43rd anniversary, will allow debit cards to be used for payments abroad of up to USD 1,000 at POS terminals. An additional USD 3,000 limit will be available for airline tickets, international hotel bookings, and hospital payments abroad.
President Dr Mohamed Muizzu announced the new limits while addressing the residents of Muli, Meemu Atoll, last September. He emphasised that the changes would reduce the need for citizens to purchase dollars at higher prices.
"Steps like these are important to alleviate the people’s reliance on buying dollars at inflated prices on the black market. We hope the public will benefit positively from these measures,” the President had said.
Despite the increased POS limits, the foreign monthly ATM withdrawal for MVR debit cards will remain at USD 125. The student foreign transaction limit of USD 1,200 also remains unchanged, the bank said.
The new limits will come into effect on 11 November on BML’s anniversary, which coincides with Maldives’ Republic Day.
BML’s adjustments follow recent amendments to the Foreign Exchange Act, which now makes it mandatory to exchange a certain percentage of dollars entering the Maldives through the tourism industry via local banks. The collected funds will be distributed equally among the banks to address challenges in securing foreign currency.
In a landmark move to further strengthen and support the country’s business community, BML has also announced a major reduction in its Merchant Discount Rate (MDR) to 1 percent on all BML debit cards used on BML POS terminals, alongside a new financing facility for merchants.
This announcement also came as part of a series of positive changes coinciding with the Bank’s 43rd anniversary, reaffirming BML’s commitment to driving growth and financial inclusion across the Maldives.
The MDR, which is the commission charged by the Bank to merchants for accepting card payments on BML POS terminals, has remained at a standard rate of 2.5 percent since BML introduced debit card services in 2000. The announcement marks the first-ever reduction in this rate — a significant step that will directly benefit over 7,000 merchants who currently use BML’s payment solutions nationwide.
Mohamed Shareef, Chief Executive Officer of BML said reducing the merchant fee to 1 percent is a significant change the bank believes will make a real difference for thousands of businesses.
In addition to the MDR reduction, BML introduced a new Advance Merchant Settlement facility to provide greater financial flexibility for its merchant partners. Offered as an unsecured merchant advance settlement, this facility gives businesses quick and easy access to funds of up to USD 129,700, based on their last six months of POS sales with BML. Repayments are structured conveniently against future daily sales, ensuring flexibility and ease for merchants.