Enacy Mapakame Business Reporter
BANKS may have lowered the costs of electronic transactions but unless the cash squeeze eases, the reduction will remain a smokescreen. Last month, the Reserve Bank of Zimbabwe in agreement with banks and payment system procedures reduced charges on electronic transactions to ease pressure on banking clients and encourage the use of plastic money. The maximum RTGS charges were halved to $5 while electronic funds transfer now attract a minimum and maximum fee of 33 cents and $2,10 respectively. Point of sale (POS) transaction of up to $10 now attract a 10 cent charge while transactions above $10 will be charged 45 cents from $2,50.

It costs between $2,50 and $3,50 for a single ATM cash withdrawal across the industry. However, with tight cash limits in force, depositors have to visit the ATM multiple times to get money that in stable times would have otherwise been withdrawn in a single transaction.

What it means is that banks are actually reaping more from a system designed not only to ease cash shortages, but also force banks to cut charges that have long stifled savings in Zimbabwe.

A depositor will pay between $10 and $15 to withdraw $1 000 from a bank whose maximum daily withdrawal limit is $200 from the ATM. For banks whose maximum daily withdrawal limit is $100, depositors will pay between $20 and $30 to withdraw the same amount ($1 000) from the ATM.

The Bankers Association of Zimbabwe (BAZ) acknowledged the plight of depositors in the current dispensation characterised by cash constraints. BAZ president Dr Charity Jinya said the association was cognisant of the high charges depositors are subjected to due to th multiple transactions they carry out.

She said the charges on cash withdrawals were reflective of the cost of procuring the cash into the country, at a time when there is a high demand for it and limited deposits back into the bank.

“We are indeed aware that customers are facing increased base charges when they make multiple withdrawals on most ATMs. These have been necessitated by current acute cash shortages being experienced at some banks.

“Banks after consultation with the Reserve Bank of Zimbabwe have drastically reduced the cost of electronic transfers in an effort to encourage the use of plastic money,” said Dr Jinya.

She added BAZ members were deploying more POS machines to retailers, wholesalers and other providers of services for the convenience of the transacting public. High charges and lack of confidence in the banking sector has left the large population of Zimbabweans unbanked.

According to a Finscope 2014 Consumer Survey report an estimated 70 percent of the country’s adult population were unbanked despite an increase in financial inclusion driven by mobile money platforms. The survey indicated 74 percent of the unbanked said they did not need bank accounts while the remainder cited high costs of maintaining an account and transacting as reasons for not using banking services.

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey