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Central bank chief, Reserve Bank of Zimbabwe Governor Dr John a Mushayavanhu has announced government reduction of Point of Sale swipe charges.
The Reserve Bank Boss spoke authoritatively on the new government stance as he was giving his Monetary Policy Statement (MPS) yesterday in a televised address to the nation.
By Ross Moyo
“In addition, Point of Sale (POS) transactions for amounts less than US$5 or its equivalent in ZiG are also exempted from transaction charges, for both banking institutions and Payment System Providers (PSPs),” Dr Mushayavanhu said.
The Apex Bank boss said his bank was also working with the Bankers Association of Zimbabwe and payment service providers (PSPs) to come up with mechanisms to minimise bank charges and encourage use of e-cash to promote ZiG.
“These mechanisms will be finalised and communicated before the end of the first half of 2025,” Dr Mushayavanhu said.
Dr Mushayavanhu emphasized enhancement of digital transactions in the Southern African country’s economy stating that banks and PSPs had been directed, with immediate effect, to ensure that every business account (new and existing) was issued with POS machine or any other approved digital mechanism, which can facilitate transactions in both ZiG and US dollar.
“Any dormant POS machines or digital transactional gadgets should be reported to the Reserve Bank”.
Mushayavanhu said the bank advised local authorities and other licensing entities to ensure that all applicants for trading licences (individuals/ corporates) have a bank account and a functional POS machine at the point of licensing and/or renewal in order to promote the use of normal banking channels on all domestic trading transactions.
The RBZ Governor also said the central bank had acted on complaints from stakeholders during the consultative meetings alleging that some mobile money operators were applying discriminatory pricing practices against ZiG in preference for US dollar transactions.
In light of that the Governor said efforts to promote ZiG were in line with the Vision enunciated by his Principal, President Mnangagwa and provided for in the National Development Strategy policy framework to dedollarise the economy.
Dr Mushayavanhu said the Reserve Bank had, with immediate effect, reviewed upwards the annual limit from US$500 000 to US$1 million as a means to promote the use of prepaid international debit and credit cards.
The Governor hence reiterated that domestic stakeholders consulted by the bank bemoaned the current high levels of bank charges obtaining in the banking sector hence his reduction of point of sale charges adding that The RBZ, will continue to ensure that banks strictly adhere to a policy compelling them to exempt from bank charges all accounts that maintain a balance below US$100 or its equivalent in ZiG.
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