Chronicle Editor
Prosper Ndlovu, Business Editor
THE Reserve Bank of Zimbabwe (RBZ) has directed all banks to expedite civil servants’ access to their Covid-19 foreign currency allowances and submit their returns to the Central Bank by August 31, 2020.
The directive follows widespread outcry by public workers who are facing challenges utilising US$75 deposited into their accounts by Government as a flat non-taxable Covid-19 monthly allowance.
Those who received their allowances last month and this month, have been failing to utilise it because shops are saying no system has been put in place for them to swipe while some employees are yet to be issued with bank cards by financial institutions.
The Public Service Commission (PSC) has said the foreign currency allowances will not be disbursed in notes form but civil servants will use their nostro bank account electronic cards to swipe for their purchased items.
Government is paying civil servants a flat non-taxable Covid-19 allowance of US$75 while pensioners who retired from the civil service will also get a flat non-taxable Covid-19 allowance of US$30 per month.
“In view of the continuous challenges faced by the public sector employees to access their Covid-19 allowances, the Bank (RBZ) is directing all banks to adhere to the requirements to open domestic FCA accounts to enable the public sector employees to access their US$ allowances in the manner and form as expected by Government and the employees,” said the Reserve Bank of Zimbabwe governor, Dr John Mangudya.
“Banks should make it easy for these public servants to have access to foreign exchange cards and to permit them to transact in the normal course of business like any other ordinary customers of banks with adherence to the usual Know Your Customer (KYC) principles. Accordingly, banks are directed to submit returns to the Bank by 31 August 2020 on their banking programme(s) that they have put in place to address the requirement for ease of access to Covid-19 allowance by the public sector employeess.”
Dr Mangudya expressed concern over the delay in his 2020 mid-term monetary policy statement released yesterday.
While some banks have said they have started giving cards, the Bankers Association of Zimbabwe (BAZ) president, Mr Ralph Watungwa, is on record recently confirming that most civil servants are still to get their bank cards to start transacting. Governemnt has also chided some banks for armtwisting civil servants to liquidate their forex balances to them in exchange for RTGS dollar.
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