admin
Almost every transaction conducted with a bank attracts a charge. Unlike in the days of the Zimbabwean dollar where banks attempted to pay interest on deposits, no matter how paltry, many depositors these days are shocked how money in their accounts is “eaten” away every month due to bank charges.
It shows there is something seriously wrong with our banking system when you leave $1 000 in your account untouched and after a year the balance is less than the original amount.
Of course, banks can not be expected to provide free services as they are there to make money but it is the level of levies which has raised concern.
Most Zimbabweans have lost faith in financial institutions and would rather keep large sums of money stacked at home.
Hundreds of millions of dollars, if not billions, are estimated not to be in circulation within the banking sector where the money could benefit the economy largely due to the high bank charges.
In a bid to address this anomaly, Finance Minister Tendai Biti came up with a raft of measures to protect depositors from high fees charged by banks. These measures included exempting deposits of less than $800 from bank charges while any deposit of more than $1 000 held over 30 days was to attract a minimum interest of four percent per annum.
However, people’s expectations were dashed when the measures announced by the minister failed to come into effect and they continued to be burdened by high bank charges.
Presenting his monetary policy on Thursday, Reserve Bank of Zimbabwe Governor Dr Gideon Gono reiterated Government’s commitment to reduce bank charges.
He said the RBZ and the banks had spent 75 days negotiating a framework to reduce bank charges which came into effect yesterday.
He said a Memorandum of Understanding had been signed to chart the way forward.
Under the memorandum, depositors with monthly deposits of up to $800 will be charged a maximum of $2.50 as cash withdrawal fees; $4 account maintenance fees; $2 ATM withdrawal fee while use of Point of Sale would attract between 10 cents and 50 cents.
Request for a statement will be free for the first request per month while subsequent requests will attract current charges. No charges will be levied on deposits. While we welcome the agreement, we hope the central bank has mechanisms in place that will ensure that all banks comply with the agreement other than just threats that it will sanction non-compliant banks.
There is need for a legal instrument that compels financial banks to keep to the agreed limits on bank charges because if it becomes voluntary, some might not reduce their charges.
Others might reduce their charges just to take the heat off them for a short period of time then increase them once the dust has settled down.
One school of thought regards a Memorandum of Understanding as more of a gentleman’s agreement which might be difficult to enforce legally. It is often used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement.
There is no doubt that some of our banks are able to retain the services of some of the best legal minds in the country and, if need be, they will not find it difficult to wriggle out of the agreement.
That loophole must be closed.
Online Reporter