The reserve Bank of Zimbabwe has banned the system of cash in and cash out with immediate effect. This comes as a result of exhorbitant percentage fees being charged by ecocash agents and other institutions involved in the cash in and cash out policy.
In an official statement, the reserve bank declared that all those involved in the transactions would cease forthwith. The announcement was mad though the National Payment Systems directive NPS 01/2019.
The reserve bank said that it was aware that some economic agents were engaging in illegal activities thereby abusing the cash in and cash out system. Part of the statement issued to the public read,”The charging of commissions outside the approved framework adversely affects the smooth operation of payment systems and have a negative effect of distorting pricing of goods and services”.
There has been a huge outcry over agents charging as much as 60% for on to have access to cash. Last week, ecocash agents were issued with an altimatum to stop charging ridiculous commission fees in exchange for cash. RBZ said the abuse of cash in out process was compromising the public interest and objectives of national payment systems in Zimbabwe.
All mobile payment systems have been castigated for not using the system within the confines of the law. Many people have expressed relief at the intervention by the reserve bank. They have, however, called for a lasting solution to the problem since cash is scarce in Zimbabwe. Although most transactions are now done electronically, cash is still an internal part of daily business. Furthermore some shops and food outlets still refuse to accept electronic means of payment.
