MIB restricts foreign transactions on MVR debit card

The Maldives Islamic Bank (MIB) has introduced new restrictions on the use of the USD 250 monthly foreign transaction allowance available on its Maldivian rufiyaa debit cards, citing concerns that the facility is increasingly being used for non-essential spending.

In a notice issued to customers, the bank said the dollar allocation was originally intended to support essential overseas expenses. However, recent transaction patterns showed that some customers were using the allowance for purposes beyond its intended scope, prompting the bank to revise how the facility can be accessed.

Under the new policy, effective immediately, customers will no longer be able to use the monthly allowance on selected merchant websites identified by the bank. MIB has also introduced a cap of 10 foreign currency transactions per month for cardholders using the facility.

The bank said the changes are designed to ensure that limited foreign currency resources remain available for essential spending and can be distributed more equitably among customers.

Despite the restrictions, MIB confirmed that customers will continue to be able to use the USD 250 monthly allocation for a range of common international expenses. These include subscription-based services, purchases made through overseas point-of-sale terminals, healthcare-related payments, and travel expenditures.

"The objective is to provide as many customers as possible with access to foreign currency for their most important needs," the bank said in its statement.

The decision comes at a time when access to foreign currency remains a significant concern for many individuals and businesses in the Maldives. The country's heavy reliance on imports, international travel, and overseas digital services has increased demand for US dollars, while financial institutions continue to manage foreign currency availability amid broader economic pressures.

Banks operating in the Maldives have periodically adjusted foreign transaction limits in response to market conditions and foreign exchange liquidity constraints. Such measures are often aimed at prioritizing critical spending categories while managing demand for limited dollar reserves.

For many consumers, the USD 250 monthly allowance has become an important tool for paying for digital subscriptions, online education platforms, software services and other international purchases that require foreign currency transactions.

MIB apologized for any inconvenience caused by the changes and said the measures were necessary to ensure the sustainability of the service and the continued availability of foreign currency access for customers with essential spending requirements.