Zimbabweans to benefit from RBZ measures

Zimbabweans are set to benefit from sweeping reductions in bank charges after the Reserve Bank of Zimbabwe moved to cut balance inquiry fees, Point of Sale transaction costs and cash withdrawal charges, easing the financial burden on depositors and small businesses.

The measures are expected to bring relief to civil servants, vendors, pensioners and informal traders who rely heavily on electronic transactions and cash withdrawals for daily survival, while also lowering the cost of doing business across the economy.

Presenting the Monetary Policy Statement last Friday, Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu said the reforms were crafted to respond to widespread concerns about high banking costs, which have been eroding incomes and discouraging financial participation. He said the new framework seeks to promote fairness, financial inclusion and affordability in line with Zimbabwe's broader economic transformation agenda under the National Development Strategy 2.

Under the new directives, banking institutions and deposit-taking microfinance institutions are now required to reduce cash withdrawal charges, both in banking halls and at Automated Teller Machines, to a maximum of 2 percent of the amount withdrawn for both US dollar and ZiG cash transactions.

Point of Sale charges have been reduced to a maximum of 1,5 percent of the transaction amount for both local and international cards, capped at US$20 or the ZiG equivalent. Banks have also been ordered to remove account balance inquiry charges across all banking and mobile banking platforms and to scrap fees on cash deposits for both ZiG and US dollar transactions. Fees for the issuance of new and replacement bank cards must not exceed cost recovery levels.

Dr Mushayavanhu said the Reserve Bank had continued to receive complaints from the banking public regarding the high cost of doing banking business. He noted that such charges discourage economic agents from using formal banking channels, leading to financial disintermediation and a low pool of domestic savings necessary to support productive sectors of the economy.

Customers are now expected to retain more of their earnings when accessing their funds, particularly workers who receive monthly salaries and must make frequent withdrawals to meet household expenses. The reduction in POS charges is also likely to ease pressure on small-scale traders and formal businesses, many of whom had been passing high transaction costs on to consumers. Lower charges could encourage more merchants to accept electronic payments without inflating prices, ultimately stabilising the cost of goods and services.

Reduced balance inquiry fees are expected to assist low-income earners who regularly monitor their accounts to manage tight budgets, ensuring that simple account checks do not attract additional costs.

The central bank also reduced charges on its own payment infrastructure by lowering Real-Time Gross Settlement system fees with immediate effect. RTGS charges for Window 1 and 2 transactions were reduced from US$0,90 to US$0,80, payable in ZiG equivalent, while Window 3 charges were lowered from US$1,20 to US$1,10.

Economist and Zimbabwe National Chamber of Commerce chief executive Advocate Chris Mugaga welcomed the move, describing it as a positive step towards restoring confidence in the formal banking sector and promoting financial inclusion. He said high charges had pushed many people towards informal methods of saving and transacting, discouraging participation in formal financial channels. However, he noted that further alignment between monetary and fiscal authorities may be needed, particularly regarding the Intermediated Money Transfer Tax, which remains a significant cost burden.

Economist and Monetary Policy Committee member Mr Persistence Gwanyanya said the reduction of RTGS charges and the removal of balance inquiry fees were critical steps as the country implements broader ease of doing business reforms. He added that high banking costs had accelerated financial informalisation and weakened the effectiveness of monetary policy transmission mechanisms, making the Reserve Bank's corrective measures prudent.

Ordinary Zimbabweans also welcomed the announcement, saying high bank charges had been eroding their disposable incomes. Small-scale trader Mr Tawanda Moyo said limiting withdrawal and POS charges would make a difference to informal business operators, as every dollar counts. Ms Rutendo Chikomba said removing balance inquiry and deposit fees would help workers better manage their salaries without losing money to unnecessary service charges.