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Zimbabwe slashes bank charges to promote use of plastic money 

Xinhua, June 15, 2016 Adjust font size:

The Reserve Bank of Zimbabwe has reduced charges on electronic transactions to encourage the use of plastic money in the wake of a biting cash crunch in the economy.

In a statement Tuesday, Governor John Mangudya said the central bank had agreed with the Bankers Association of Zimbabwe on the new charges.

"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 on electronic transactions in order to promote and encourage usage of electronic banking services," the governor said.

This follows public complains that bank charges including for electronic transactions were too high.

With the new rates, the real time gross settlement (RTGS) now attracts a maximum of 5 U.S. dollars, electronic fund transfer a maximum of 2.10 U.S. dollars and point of sale (POS) transactions up to 10 dollars are now charged 10 cents.

POS transactions above 10 dollars are charged 45 cents, POS own bank customer maximum of 20 cents while POS issuer charges have been removed.

Automated teller machine withdrawals are now charged a maximum of 2.50 dollars down from about 4 dollars, merchant service commission 0 to a maximum of one percent for local transactions while monthly administrations or service fees are now charged 0 to a maximum 5 dollars for individuals.

"It is envisaged that the reduction in transactional fees will go a long way in promoting the use of plastic money which is essential to move the economy towards a cashless society and complement the current financial inclusion efforts," Mangudya said.

Zimbabwe has been facing severe cash shortages since March which authorities blame on money laundering and a widening trade deficit.

The central bank has since announced a raft of measures to deal with the cash crisis, which include limiting cash withdrawals and the planned introduction of bond notes in October. Endit