RBZ Reduces Banking Charges

The Reserve Bank of Zimbabwe (RBZ) has today introduced a new bank transaction fees which are structured according to the amount a person withdraws .This move by the RBZ will result in withdrawal costs declining significantly and certain charges being scrapped.

The new charges will be put at 1 percent of an amount withdrawn at an Automated Teller Machine (ATM) and 1.25 percent for withdrawals over the counter. The new charges are now effect.

The severe liquidity crisis has seen banks having withdrawal caps, which vary from one organisation to the next. Some banks have reduced their limits to as little as $20 per day counter to the Reserve Bank of Zimbabwe authorised daily limit of $1 000, while encouraging depositors to use plastic money.

The bank charges have upset depositors, last week it would costs as much as $15 just to withdraw $100 in five days.

“In order to align cash withdrawal charges to amount withdrawn, a proportional pricing model has been adopted to replace the current fixed charges. The applicable charges for cash withdrawal is a maximum of 1 percent and 1.25 percent of amount withdrawn from an ATM and over — the counter, respectively as indicated below.” RBZ Governor Dr John Mangudya said in a statement.

He said the RBZ would continue to monitor the cost of bank charges to ensure access to affordable banking services and at the same time promoting the use of plastic money.

The New Withdrawal Charges

On bond notes, Dr Mangudya said preliminary indications are liquidity will soon improve.