Rumbidzayi Zinyuke
Senior Reporter
Zimbabweans are set to benefit from sweeping reductions in bank charges after the Reserve Bank of Zimbabwe (RBZ) moved to cut balance inquiry fees, Point of Sale (POS) 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 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 (DTMFIs) 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withdrawal charges, both in banking halls and at Automated Teller Machines, to a maximum of 2 percent of the amount withdrawn for both US dollar and ZiG cash transactions.
“Reduce the Point of Sale (POS) charges 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,” said Dr Mushayavanhu.
In addition, banks were 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.
The central bank further directed that fees for the issuance of new and replacement of bank cards “shall not exceed cost recovery levels”.
Explained Dr Mushayavanhu: “The Reserve Bank has, however, continued to receive complaints from the banking public regarding the high cost of doing banking business.
“Such high transactional charges discourage economic agents from using formal banking channels, leading to financial disintermediation and a low pool of domestic savings necessary to support the productive sectors of the economy.”
This means customers will retain more of their hard-earned money each time they access their funds, particularly benefiting workers who receive monthly salaries and must make frequent withdrawals to meet household expenses.
The reduction in POS charges is also expected to ease pressure on small-scale traders and formal businesses, who have often passed high transaction costs on to consumers.
Lower charges will encourage more merchants to accept electronic payments without inflating prices, ultimately stabilising the cost of goods and services.
Meanwhile, reduced balance inquiry fees will particularly assist low-income earners who regularly check their accounts to manage tight budgets, ensuring that even simple account monitoring does not attract punitive costs.
Economists say the measures could restore confidence in the banking sector by making it more customer-friendly and accessible.
By lowering transactional barriers, the RBZ aims to stimulate economic activity, support small enterprises and deepen financial inclusion, especially among informal sector players who form the backbone of the economy.
The reforms signal a deliberate shift towards protecting depositors while strengthening the financial system, positioning the banking sector as a partner in national development rather than a burden to ordinary citizens.
Reducing bank charges, added Dr Mushayavanhu, would support broader financial inclusion and improve the operating environment for businesses.
This is also expected to drive the use of formal banking channels and broader financial inclusion.
The central bank reduced charges on its own payment infrastructure, lowering Real-Time Gross Settlement (RTGS) system fees with immediate effect.
“In line with the Government’s thrust and commitment to promote the ease and cost of doing business under NDS 2, the Reserve Bank has taken the first step to reduce costs associated with the use of its systems.
“In this regard, the Reserve Bank has, with immediate effect, reduced Real-Time Gross Settlement (RTGS) System charges,” said the Governor.
RTGS charges for Window 1 and 2 transactions have been reduced from US$0,90 to US$0,80, payable in ZiG equivalent, while Window 3 charges have been lowered from US$1,20 to US$1,10, also payable in ZiG equivalent.
Economist and Zimbabwe National Chamber of Commerce chief executive, Advocate Chris Mugaga said the RBZ move would restore confidence in the formal banking sector and support economic activity.
“The decision by the central bank to reduce transaction and bank charges is a very welcome development, particularly in promoting financial inclusion,” he said.
“High charges had pushed many people towards informal methods of saving and transacting, including keeping money outside the banking system. This discouraged participation in formal financial channels.”
Mr Mugaga said the move, coupled with the increase in the targeted finance facility from ZiG600 million to ZiG1,2 billion, would provide relief to both businesses and households struggling with high operating costs.
“This intervention offers reprieve to enterprises and families who have been weighed down by steep transaction costs,” he said.
“However, for the full benefits to be realised, there may be a need for further alignment between monetary and fiscal authorities, particularly regarding the Intermediated Money Transfer Tax (IMTT), which remains a significant cost burden on depositors.”
He expressed hope that continued policy cohesion between the central bank and Treasury would result in additional reforms to further reduce the cost of transacting within the formal banking system.
Economist and Monetary Policy Committee member, Mr Persistence Gwanyanya said as the nation undergoes sustained ease of doing business reforms, “marked by significant regulatory fee reviews in five of the 12 targeted sectors, it is commendable that the RBZ has spearheaded initiatives to reduce the cost of banking.
“Notably, the reduction of RTGS charges and the removal of balance inquiry fees are critical steps. However, the persistently high cost of banking remains a concern.
“Among other factors, these costs have accelerated financial informalisation, negatively impacting the utilisation of the formal financial service system.
“Admittedly, these structural factors have impaired the efficacy of monetary policy transmission mechanisms, rendering the RBZ’s corrective measures prudent.”
Mr Gwanyanya said the comprehensive ease of doing business reforms planned for the financial services sector demanded significant transformation from industry players.
“Financial institutions must recognise that the sources of competitiveness are shifting,” he said. “The new environment emphasises value for money; consequently, businesses must become more competitive, customer-centric and agile to deliver superior client experiences.”
Ordinary people yesterday welcomed the announcement, saying high bank charges had been eroding their disposable incomes.
A small-scale trader in Harare, Mr Tawanda Moyo, said the reduction in withdrawal and POS charges would bring relief to informal business operators.
“Sometimes you withdraw money and you are shocked at how much has been deducted in charges,” he said.
“If the bank sticks to the 2 percent maximum, it will make a difference because every dollar counts in our businesses.”
Ms Rutendo Chikomba said scrapping balance inquiry and deposit fees would ease pressure on ordinary people.
“At times you just want to check your balance and you are charged for it, which reduces the little money you already have,” she said.
“Removing those charges will help us manage our salaries better because we will not lose money on unnecessary fees.”
Ms Chikomba said at one point she paid US$6,50 in a fast-food shop using her Mastercard and was shocked to realise she had incurred service fees of US$5, to make the total cost US$11,50.
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