Business / Companies
Banks hike charges
05 May 2016 at 05:03hrs | Views
BANKS have hiked transaction costs by up to 570 percent, leaving the bulk of depositors who are already living on the margins of poverty poorer.
They are taking advantage of the crippling cash shortages.
The situation has even led workers who are gainfully employed in the formal sector to start contemplating receiving their salaries through other electronic platforms such as EcoCash, One Wallet and TeleCash whose charges are much lower.
Before the cash crisis, most banks were charging withdrawal fees of about US$3 for withdrawals made in the banking halls and US$2,50 for withdrawals done on Automated Teller Machines (ATMs) for cash of up to US$1 000.
But now, a depositor is now parting with US$20 for a withdrawal of US$1 000 made over several days because of the cash limits, implying a hike of between US$17 and US$17,50 or nearly 570 percent.
Some banks are charging slightly less, but overall, all have increased their withdrawal charges by huge margins.
Bankers Association of Zimbabwe (BAZ) president, Charity Jinya, yesterday said the workload for the banks has increased, which also follows that the cost of processing transactions has gone up.
She said this was not of the banks' making.
"It's a situation none of us want to be in. It's a sign of the times. (But) things can't be done for free. Since we are now repeating transactions, just look at the amount of work bankers are now getting to do. Labour wants to be paid for it," said Jinya.
The Consumer Council of Zimbabwe has described the situation confronting depositors as "very distressing".
The executive director for the consumer watchdog, Rosemary Siyachitema, was this week frantically trying to secure meetings with the Reserve Bank of Zimbabwe and BAZ to highlight the plight of depositors.
"It's a difficult time for consumers.They (banks) have been putting too much pressure on consumers to use plastic money, but our capacity for the usage of plastic money is not good. We are ill prepared; schools don't have facilities for plastic money; the city councils don't have the capacity. If we are to go the plastic money way, retailers should be automated to welcome many people to use the plastic money.
"The facilities should be spread all over the country to enable ease of doing business," she said.
They are taking advantage of the crippling cash shortages.
The situation has even led workers who are gainfully employed in the formal sector to start contemplating receiving their salaries through other electronic platforms such as EcoCash, One Wallet and TeleCash whose charges are much lower.
Before the cash crisis, most banks were charging withdrawal fees of about US$3 for withdrawals made in the banking halls and US$2,50 for withdrawals done on Automated Teller Machines (ATMs) for cash of up to US$1 000.
But now, a depositor is now parting with US$20 for a withdrawal of US$1 000 made over several days because of the cash limits, implying a hike of between US$17 and US$17,50 or nearly 570 percent.
Some banks are charging slightly less, but overall, all have increased their withdrawal charges by huge margins.
She said this was not of the banks' making.
"It's a situation none of us want to be in. It's a sign of the times. (But) things can't be done for free. Since we are now repeating transactions, just look at the amount of work bankers are now getting to do. Labour wants to be paid for it," said Jinya.
The Consumer Council of Zimbabwe has described the situation confronting depositors as "very distressing".
The executive director for the consumer watchdog, Rosemary Siyachitema, was this week frantically trying to secure meetings with the Reserve Bank of Zimbabwe and BAZ to highlight the plight of depositors.
"It's a difficult time for consumers.They (banks) have been putting too much pressure on consumers to use plastic money, but our capacity for the usage of plastic money is not good. We are ill prepared; schools don't have facilities for plastic money; the city councils don't have the capacity. If we are to go the plastic money way, retailers should be automated to welcome many people to use the plastic money.
"The facilities should be spread all over the country to enable ease of doing business," she said.
Source - Financial Gazette
