WHEREAS, promoting the use of non-cash payment instruments and ensuring the safety and efficiency of the payment system are of utmost necessity;

WHEREAS, it has been found important to mitigate the risk of robbery; fraud, money laundering, tax evasion, and illicit activities including smuggling,- counterfeiting, and other criminal activities which are illegal and immoral;

WHEREAS, increased use of non-cash payment instruments Minimizes liquidity risk and helps to ensure soundness of the financial system;

WHEREAS, it is necessary to minimize the huge cost related to printing, processing, and handling of physical cash;

NOW, THEREFORE, in accordance with sub-article 4(2(d4)) and 37(2) of the National Payment System Proclamation No. 718/2014 and sub-article 5(15) and 27(2) of the National Wilk of Ethiopia Establishment (as Amended) Proclamation No. 591/2008, the National Bank of Ethiopia has issued this Directive as follows.