NEW: Reserve Bank of Zimbabwe moves to slash exorbitant bank charges

Online Reporter

THE Reserve Bank of Zimbabwe (RBZ) says it will be collaborating with the Bankers Association of Zimbabwe (BAZ) and payment system providers (PSPs) to come up with mechanisms to minimise bank charges and encourage the use of e-cash to promote ZiG uptake.

This development comes after widespread complaints from local stakeholders regarding the exorbitant bank charges that are currently prevalent in Zimbabwe’s banking sector.

Few financial products, high account maintenance fees, high transaction fees, limited international transactional capacity and high interest rates are presently plaguing the local banking sector.

However, reduced bank charges will encourage financial inclusion as more people will open and maintain bank accounts.

Lowering charges of financial transactions will also stimulate economic activity, promote trade and support economic growth.

The recently released Monetary Policy Statement revealed that banking fees made up 22 percent of banks’ income, while lending, which is the core role of banks, made just 13,46 percent of banks’ income.

The central bank has, however, indicated that it will continue to enforce a policy that requires banks to waive charges for accounts with balances below US$100 or its ZiG equivalent.

According to the RBZ, point-of-sale (POS) transactions under US$5 or the ZiG equivalent will be exempted from transaction charges for both banks and PSPs.

“Domestic stakeholders consulted by the Reserve Bank bemoaned the current high levels of bank charges obtaining in the banking sector.

“The Reserve Bank is also working with BAZ and PSPs to come up with mechanisms to minimise bank charges and encourage use of e-cash to promote ZiG. These mechanisms will be finalised and communicated before the end of the first half of 2025,” said RBZ Governor Dr John Mushayavanhu.