Zimbabwe: RBZ Raises Mobile Banking Transaction Limit as Inflation Bites

[ACCI-CAVIE] According to consistent African Centre for Competitive Intelligence sources, the Reserve Bank of Zimbabwe (RBZ) has raised the limit on mobile banking transactions from person to person from ZW$5 000 to ZW$10 000 per transaction and from ZW$35 000 per week to ZW$70 000 per week

In August 2020, the RBZ ordered a limit on mobile banking transactions (EcoCash, Telecash, OneMoney) for all individuals at a maximum of ZW$5 000 per day and ZW$35 000 per week.

In his Monetary Policy Statement (MSP) issued this Monday, RBZ Governor John Mangudya announced a cocktail of measures the central bank has put in place to promote the use of the Zimbabwe dollar.

The central bank governor also announced that more forex will be availed for fuel service stations that sell fuel in Zimbabwe dollars.

  • Some of the measures announced by the RBZ to promote the use of the local currency in domestic transactions include: Increasing foreign exchange availability to fuel service stations designated by the Zimbabwe Energy Regulatory Authority (ZERA) to sell fuel in local currency.
  • Maintaining minimum deposit rates for savings and time deposits at 10% and 20% respectively, to preserve value for local currency deposits.
  • Building foreign exchange reserves to provide the necessary backup support for the local currency to enhance its attractiveness through setting aside 5% of the foreign exchange available for the auction system.

The RBZ also resolved to increase the limit on mobile banking transactions as follows: The MPS read:

– person to business from ZW$20 000 to ZW$25 000 per transaction with a maximum limit of ZW$100 000 per week

– person to person from ZW$5 000 to ZW$10 000 per transaction with a limit of ZW$70 000 per week.

– increasing the cash withdrawal limit for the banking public from ZW$2000 to ZW$5000 per week.

The RBZ said it appreciates the effort being made by banks to enable cashless transactions through digital and electronic banking services to their customers. The central bank called on members of the public to bank their cash and utilise digital and electronic services, which include credit and debit cards.

It said this will minimise the risk of theft and robberies associated with carrying cash on person or possession of large sums of cash at premises.

By The Zimbabwe Mail