Banking Law – Starting 15 June 2025, South Africans will face major changes in how they access and manage their money, as sweeping reforms in banking laws come into effect. These changes, announced by the South African Reserve Bank (SARB) in collaboration with the National Treasury, aim to enhance financial security, increase transparency, and reduce fraud. However, they also bring noticeable limitations on everyday banking habits, including new ATM withdrawal rules, stricter debit card limits, and mandatory transaction tracking. The government has cited rising digital fraud, increased money laundering activities, and growing pressure from international financial bodies as key reasons for implementing the new banking framework. As a result, all commercial banks, ATMs, and card-based transactions will now operate under updated compliance rules. For ordinary citizens, these changes will feel immediate. Daily cash withdrawal ceilings will be slashed, biometric verification may become necessary at selected ATMs, and several older debit cards will be phased out. It’s critical for account holders to understand what changes are coming, what actions are required from their side, and how they can protect their access to funds without disruption.
Key Changes Coming in Banking Law on 15 June 2025
South African banking customers will experience several operational changes beginning mid-June. Here’s a summary of what’s changing and who it affects.
- Nationwide revision of ATM cash withdrawal limits
- Introduction of mandatory biometric authentication for high-value ATM withdrawals
- Debit card transaction ceilings reduced for low-KYC accounts
- Limits placed on international online spending
- Removal of magnetic stripe cards – only chip-enabled cards to be allowed
- New verification measures for mobile app logins
- Banks required to issue monthly transaction breakdowns in simplified format
Revised Banking Law
Banks have released a consolidated list showing the new transaction limits under the new framework.
| Bank Name | Old Daily ATM Limit | New Daily ATM Limit | Max Debit Card Purchase | Biometric Needed? | Chip Card Required? | KYC Update Deadline | Online Spend Limit |
|---|---|---|---|---|---|---|---|
| ABSA | R10,000 | R5,000 | R25,000 | Yes | Yes | 30 June 2025 | R5,000 |
| Standard Bank | R8,000 | R4,000 | R20,000 | Yes (over R4,000) | Yes | 25 June 2025 | R3,500 |
| Nedbank | R7,000 | R3,000 | R15,000 | Yes | Yes | 20 June 2025 | R2,500 |
| FNB | R9,000 | R4,000 | R22,000 | Yes | Yes | 18 June 2025 | R4,000 |
| Capitec | R6,000 | R3,000 | R18,000 | No (trial phase) | Yes | 30 June 2025 | R2,000 |
| TymeBank | R4,000 | R2,000 | R12,000 | No | Yes | 28 June 2025 | R1,500 |
| Investec | R15,000 | R8,000 | R40,000 | Yes | Yes | 30 June 2025 | R10,000 |
| African Bank | R5,000 | R2,500 | R10,000 | Yes | Yes | 15 June 2025 | R1,000 |
How These Changes Will Affect Everyday Banking Law
These updates are expected to impact various segments of society differently – from pensioners to business account holders. Here’s a look at how you might be affected.
- Lower-income users: May find reduced ATM limits restrictive for cash-only needs
- Digital-only customers: Might benefit from biometric authentication
- Small businesses: Will need to adapt to new online payment verifications
- Rural residents: Face limited access to biometric-enabled ATMs
Banking Law – Actions Required from Account Holders Before Deadline
To remain compliant and avoid service disruptions, customers are required to take several key steps.
- Update KYC documents at your nearest branch or online portal
- Replace magnetic stripe debit cards with EMV chip cards
- Register biometrics where mandated by the bank
- Enable two-factor authentication on mobile banking apps
- Review and acknowledge new daily limit terms and conditions
Government’s Reason Behind the New Banking Law
The authorities have made it clear that these changes were not sudden. They follow a global shift in regulatory standards and are part of a broader anti-money laundering agenda.
- Increased international pressure to modernize South Africa’s banking laws
- Global Financial Action Task Force (FATF) recommendations implemented
- Rising financial fraud and cybercrime forced quicker adaptation
- Protect consumer funds against cloning, phishing, and data theft
Compliance Enforcement and Penalties
From 15 June 2025, non-compliant banks or account holders may face restrictions or penalties.
| Compliance Area | Penalty on Violation | Enforcement Authority | Grace Period |
|---|---|---|---|
| KYC Non-Submission | Account suspension | South African Reserve Bank | Until 30 June |
| Using magnetic card | Card deactivation | Respective bank | No grace |
| Biometric refusal | ATM access disabled | Bank + National Treasury | Until 30 June |
| Exceeding daily limits | Transaction rejection | Bank System | Immediate |
| Unverified online logins | App login disabled | Bank’s cyber unit | 15-day window |
How Banks Are Preparing and Responding
Major banks have already launched customer awareness campaigns, SMS alerts, and updated mobile apps to help customers navigate the transition.
- SMS/email reminders sent to update KYC
- Dedicated helplines and online chatbots activated
- Biometric machines installed in urban branches
- Doorstep document pickup available for senior citizens in select cities
Bank-Specific Customer Support Measures
- ABSA: App update released with integrated biometric login
- Standard Bank: Launched online KYC update portal
- FNB: Offering free chip card replacement till 25 June
- Capitec: Deploying rural mobile vans to remote customers
Long-Term Impact on Digital Banking in South Africa
The banking sector anticipates that this shift will promote greater digital inclusion and reduce dependency on cash transactions over the long term.
Many believe this move aligns South Africa with international norms, while also encouraging the growth of mobile wallets and smart payments. However, until customers fully adapt, banks will be required to offer transitional support and ease the burden on low-digital-literacy populations.
Timeline of Events Leading to the Law Change
- January 2024: SARB begins consultations with banks
- April 2024: National Treasury greenlights regulatory framework
- February 2025: Pilot implementation in select provinces
- May 2025: Public announcement and campaign roll-out
- 15 June 2025: Full enforcement across South Africa
As these major changes come into force, it’s crucial for all South African account holders to stay informed, complete required verifications, and monitor their banking communications. While the short-term may bring inconvenience, the long-term goal is a safer and more accountable financial ecosystem for everyone.
FAQs of Banking Law
Q1: What happens if I don’t update my KYC by the deadline?
Your account could be temporarily suspended or limited until KYC is completed.
Q2: Can I still use my old magnetic stripe debit card?
No. All magnetic stripe cards will be deactivated after 15 June.
Q3: Will I be charged for replacing my debit card?
Most banks are offering free replacement until the end of June 2025.
Q4: Are these changes permanent?
Yes. These are permanent regulatory changes mandated by the Reserve Bank.
Q5: What if I live in a rural area without access to biometric ATMs?
You can still use regular ATMs, but may have limited withdrawal limits.