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Econet threatens to shutdown EcoCash

by Staff reporter
01 Oct 2019 at 15:42hrs | Views
Mobile service provider, Econet Zimbabwe, has threatened to completely shutdown its Ecocash platform following the directive by the Reserve Bank of Zimbabwe (RBZ) to ban cash in and  cash out facilities.

The service provider through its subsidiary, Cassava Smartech Zimbabwe Limited, made the indications in their High Court urgent chamber application for temporary interdict.

The directive was issued in terms of Section 10 of the National Payments System Act Chapter 24:23.

"This application is intended to temporarily stop the continued implementation of the Respondent's Directive pending the determination of the legality or otherwise of the directive," the application reads.

"The applicant is already in the process of implementing the Directive with the possibility of a complete shutdown of the Ecocash platform as a whole to enable completion of the process.

RBZ issued a ban on the Cash In and Cash Out facility on Monday in a bid to curb illegal activities by agents who had been abusing the facilities.

The illegal activities included buying and selling of cash through mobile money agents at higher rates above the approved charges which has been fueling the price of the US Dollar on the parallel market.

The Ecocash platform has over 10million subscribers.

Source - zbc