BML says overseas students exempt from card limits

The Bank of Maldives (BML) has introduced limits on transactions made through some overseas e-commerce and online retail websites using MVR debit and credit cards, while stating that the changes will not affect cards issued to students living and studying abroad.

In a statement issued on Thursday, BML spokesperson Mohamed Saeed said the bank’s revised transaction limits would not apply to student cards and resident cards issued for customers living overseas.

The bank stated that students currently using cards issued to their parents in Maldives will be given a three-month period to apply for student cards. During this period, students will continue to be able to use their parents’ cards.

BML said the changes were introduced following a decline in tourist arrivals linked to the situation in the Middle East, which affected the bank’s foreign currency position. According to the bank, it had been selling about $1.33 million daily for transactions carried out through cards linked to MVR accounts.

The bank said it had strengthened its systems to prioritise foreign exchange for essential public needs amid difficulties in obtaining US dollars.

“The bank is selling the amount of daily sales from such sites within a certain budget. Once the budget is exhausted, Maldives will not be able to carry out transactions on these websites on that day,” Saeed said.

Customers are now being informed through notifications sent via the BML application when transaction limits are reached.

BML said cards issued for dollar accounts would continue to allow unlimited transactions.

The bank stated that although increased e-commerce transactions contribute to earnings, it was required to manage foreign currency usage based on foreign exchange income and the demand for dollars to meet customer needs.

“The bank will continue to make changes to the limit on foreign currency transactions with MVR cards depending on the amount of dollars available to the bank,” Saeed said.

According to figures released last week, BML sold $296 million in remittances and overseas dollar transactions as of last month this year, compared with total sales of $566 million last year.

The bank said monthly sales averaged $74 million through April this year, compared with $47 million per month last year.

BML also reported that debit and credit card sales reached $160 million as of last month, compared with $390 million during the previous year. Monthly sales for card transactions averaged $40 million this year, compared with $33 million last year.

The bank further stated that it sold $136 million through telegraphic transfers (TT) as of last month, averaging $34 million per month. Last year, TT sales totalled $175 million, averaging $15 million per month.