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RBZ slashes bank charges to between 1-1.25%

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RBZ slashes bank charges to between 1-1.25%

HARARE – The Reserve Bank of Zimbabwe has slashed bank withdrawal charges to between 1% and 1.25% of amounts withdrawn on ATMs and Over the Counter.

In a statement last night, the RBZ said in order to align cash withdrawal charges to amount withdrawn, a proportional pricing model has been adopted to replace the current fixed charges. The applicable charges for cash withdrawal is a maximum of 1% and 1.25% of amount withdrawn for ATM and over-the- counter.

Cash shortages besetting the economy, had resulted in depositors being charged over $30 on current weekly withdrawal limits. Banks were previously charging from $2.50 for ATM withdrawals and from $5.50 for OTC withdrawals, a situation which most analyst expect will lead to extraordinary profits in the year to December.

Under the new pricing structure, to withdraw $20 a charge of 20c shall apply on the ATM and 25c OTC, $50 will attract 50c and 63c and $100 will be charged$1 and $1.25. The central bank said it would continue to monitor the cost of bank charges to ensure access to affordable banking services and at the same time promote the use of plastic money.

The issue of 15% lending rates from banks, coupled with shorter lending periods, also continues to negatively impact on the competitiveness of borrower businesses.

However, the Reserve Bank said it would continue to monitor the levels of lending rates being charged by banking institutions through their on-going supervisory activities in liaison with the Bankers Association of Zimbabwe.

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