Banks slash service charges

Business Reporter
The Reserve Bank of Zimbabwe (RBZ) has, with immediate effect, reduced charges on all electronic transactions to ease pressure on banking clients and promote the use of electronic banking services.

In a statement yesterday, the RBZ said a decision had been reached following discussions between the apex bank, the Bankers Association of Zimbabwe (BAZ) and payment systems providers to reduce electronic banking charges with immediate effect.

Related articles…

• Pros and cons of using plastic money
• RBZ targets major cash dealers
• Govt plots end to cash crisis • Raft of measures in pipeline • Chinamasa briefs Politburo on progress
• Bank charges: When moral suasion meets bad faith
• Editorial Comment: High bank charges drive away depositors
• Banks have become a Mafioso cartel
• Govt addressing liquidity crunch: VP
• Banks driving away depositors: Mangudya
• Banks take advantage of cash shortages

“The Reserve Bank of Zimbabwe is pleased to advise the banking public that it has agreed with the Bankers Association of Zimbabwe and payment systems providers to reduce charges of electronic transactions in order to promote and encourage usage of electronic banking services.”

This comes as the nation is grappling with a cash crisis due to the high demand for the US dollar following weaknesses in other currencies in the approved multi-currency basket and the non-replenishment of nostro accounts because of illicit financial flows.

The crisis has seen depositors making numerous trips to banks to access their money, with each transaction attracting high charges.

According to the new charges announced yesterday, the maximum RTGS charge has been set at $5 from $10, while ATM charges did not change at $2.50.

Electronic funds transfer will now attract a minimum fee of 33 cents and a maximum of $2,10, while a point of sale (POS) transaction of up to $10 is now attracting a charge of 10 cents, and transactions above $10 will be charged 45 cents from $2,50. POS user charges have been removed, merchant service commission will now range from zero to a maximum of 1 percent for local transactions, while monthly administration charges will range from zero to a maximum of $5 for individuals.

Governor Dr John Mangudya said the new charges would go a long way in promoting the use of plastic money.