Zimbabwe: Reserve Bank cuts withdrawal charges

Dec 13, 2016

This new development is aimed at making banking services affordable

As the cash shortage in Zimbabwe persists, the Reserve Bank of Zimbabwe (RBZ) has cut withdrawal charges to stay between 1% and 1.25% of amount withdrawn at automated teller machines (ATM) and for over the counter transactions. This development is to control banks who have taken advantage of the cash shortage by increasing withdrawal charges. RBZ Governor, John Mngudya in a statement assured that the Reserve Bank will keenly observe to ensure access to affordable banking services and enhance use of plastic money. "The Reserve Bank has noted that while cash withdrawal limits have reduced significantly during the second half of 2016, there has not been a proportionate reduction in the level of bank charges". "Against this background and as part of the on-going effort to promote financial inclusion and to ensure that the banking products and services are affordable to the banking public, the Reserve Bank has reviewed cash withdrawal charges downwards with effect from 12 December 2016." "In order to align cash withdrawal charges to amount withdrawn, a proportional pricing model has been adopted to replace the current fixed charges. The applicable charge for cash withdrawal is a maximum of 1% and 1.25% of amount withdrawn for ATM and over-the-counter, respectively as below." Before this development was introduced, banks were charging between $2.50 and $3 and $5 on bond notes withdrawal charges with daily limits
of $100 and 50 for bond notes, respectively.