Greek government has decided to shut down all banks in the country for six business days and impose restrictions on cash withdrawals to stem deposit flight after bailout talks between the government and foreign lenders broke down at the weekend.
To control money inflow, withdrawals from ATM machines has been limited to EUR60 ($66) a day per account. However, this limit will not be applicable for customers with credit or debit cards of foreign accounts.
Electronic transfers and bill payments are allowed, but only within the country. The Greek stock exchange will not open either.
Greek Prime Minister Alexis Tsipras in a televised address said the decision to impose capital controls came after a Bank of Greece recommendation.
He blamed the Eurogroup and its decision to reject a request for the bailout program, which expires 30 June 2015. He again asked for it to be extended by a few days to allow for a referendum.
"The more calmly we deal with difficulties, the sooner we can overcome them and the milder their consequences will be."
He promised bank deposits would be safe and salaries paid.