New Banking Laws – Starting June 15, 2025, major changes are coming to the banking system that will directly impact how South Africans manage their daily financial transactions. These new banking laws affect everything from ATM withdrawals and EFT limits to interbank transfers and card usage. The South African Reserve Bank (SARB) and the Department of Finance have jointly issued this update to strengthen financial transparency, reduce fraud, and streamline digital payments.
The new regulations are applicable to all banks and financial institutions operating under SARB, and they aim to protect consumers while aligning with global banking standards. Below is a complete breakdown of what’s changing, who it affects, and what steps individuals and businesses must take to stay compliant.
Why the New Banking Laws Were Introduced
Several key factors triggered this regulatory shift:
- Rapid digital transformation and increased reliance on online banking.
- Rising cases of banking fraud and unauthorized transactions.
- The need to cap excessive withdrawals and limit daily transaction abuse.
- To enforce better Know Your Customer (KYC) and anti-money laundering (AML) protocols.
These reforms are part of a broader national push to digitize the economy and secure the country’s financial infrastructure.
Major Changes in Daily Transaction Limits
Effective from June 15, 2025, the following changes will be applicable:
New Daily Limits for Cash Withdrawals and Online Transfers
| Transaction Type | Previous Daily Limit | New Daily Limit (From June 15) | Remarks |
|---|---|---|---|
| ATM Cash Withdrawals | R5,000 | R3,000 | Reduced to limit physical cash flow |
| EFT via Mobile App | R10,000 | R7,500 | Enhanced OTP and verification required |
| Interbank Transfers | R20,000 | R15,000 | Includes instant and scheduled payments |
| Debit Card POS Limit | R25,000 | R20,000 | Especially in retail or e-commerce |
| International Payments | R50,000 | R35,000 | Subject to additional KYC |
| UPI/Instant Pay Platforms | R10,000 | R5,000 | Higher risk channels regulated tighter |
| Cash Deposit at ATM | Unlimited | R20,000 | Requires ID verification if higher |
| Business Account Transfers | R100,000 | R75,000 | Separate verification layers added |
These updated daily limits apply to both individuals and businesses unless stated otherwise. Banks may allow slight variations, but SARB’s upper limits are now mandatory.
Changes to Mobile Banking and Card Usage
| Feature | Old Policy | New Policy (From June 15) | Impact |
|---|---|---|---|
| SMS OTP for all transactions | Optional | Mandatory for all transactions above R2,000 | Better fraud prevention |
| UPI and Wallets Linking | Multiple bank accounts allowed | Max 2 accounts per user | Tighter control and user mapping |
| Credit Card Overdraft Usage | Flexible up to bank discretion | Max 10% of limit allowed per day | Controls debt buildup |
| Biometric Login for Apps | Not enforced | Compulsory for all digital users | Strengthens security measures |
| Digital Bank-to-Wallet Transfers | Unlimited | Capped at R3,000 per day | Affects e-wallet and online gaming |
New Rules for Interbank and Instant Transfers
Highlights of the Interbank Transaction Reform:
- Transfers between two different banks will now take longer if the amount exceeds R15,000 unless pre-authorized.
- Bank-to-Bank verification must be completed in real-time for high-value transactions.
- A new Smart Alert System will notify both sender and receiver instantly with reference IDs.
- All instant transfer logs must be kept for minimum 90 days and can be audited by SARB.
Card and ATM Policy Adjustments
- All ATM withdrawals above R2,000 will now require biometric authentication (thumbprint or facial ID).
- Credit card tap-to-pay feature will be disabled above R1,500 to prevent misuse.
- Withdrawals at non-home branch ATMs will incur a fee of R25 per transaction after the first free usage in a day.
Impact on Businesses and Individuals
For Individual Users:
- You’ll need to adjust your spending habits, especially for large purchases or fund transfers.
- Mobile apps and banking portals will issue multiple verification prompts.
- It’s recommended to keep your KYC documents updated to avoid payment denials.
For Businesses:
- Bulk transactions will now require advance declaration and supporting invoices.
- Payrolls above R75,000 per day need pre-authorization from the financial officer of the company.
- Business accounts must maintain real-time reconciliation logs, accessible by regulators upon request.
FAQs – New Banking Laws
Q1: Can I still withdraw more than R3,000 from an ATM?
Yes, but only if you visit your home branch and provide an ID proof. Otherwise, R3,000 is the new capped limit per day.
Q2: What happens to scheduled monthly transfers set before June 15?
They will continue, but the bank may contact you if they exceed the new daily limits.
Q3: Are international students and NRIs affected?
Yes. Even international transfers must comply with new caps. NRIs must update their residential proofs and visa status with their banks.
Q4: Will transaction times be slower?
Only for interbank or high-value transfers, as additional checks and alerts are introduced.
Q5: What should I do if my transaction fails under the new rules?
Contact your bank’s fraud and transaction desk immediately and request an exemption or alternate method.
Official Departmental Contact Details
Conclusion – New Banking Laws
The new banking laws set to be enforced from June 15, 2025, are a significant step toward a more secure and efficient financial system. While the restrictions may initially seem inconvenient, they are designed to protect users, reduce fraud, and enhance digital reliability. All account holders are advised to review their daily banking routines and stay informed through official sources. If in doubt, reach out to your bank or use the contact details provided above to avoid disruptions in your financial activities.