RBZ resumes cash-in, cash-out

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RBZ resumes cash-in, cash-out

By Kundai Maponga/Chengeto Chidi

THE Reserve Bank of Zimbabwe has backed down from its directive to ban the cash-in and cash-out facility as well as the cash-back facility.

In a statement last night, RBZ governor, John Mangudya notified Payment System Providers and agents that the cash-out facility was now capped at $100 per transaction with immediate effect while existing operational cash-in and cash-back limit remained the same.

He said enhanced monitoring mechanisms have been put in place by the Central bank and Payment System Providers to mitigate against abuse of payment systems and ensure abusers would be brought to book.

This will be supported by the Financial Intelligence Unit (FIU) which will control the financial activities.

“The FIU shall enhance monitoring of financial activities to ensure compliance,” the statement read.

Cassava Smartech Zimbabwe limited, a subsidiary of Econet Wireless yesterday threatened to shut down the whole EcoCash system which might have led the RBZ to return the cash-in, cash-out because over a million of Zimbabweans’ livelihoods depend on EcoCash.

Cassava Smartech Zimbabwe Limited took RBZ to the High Court on Tuesday for banning the facility.

“Furthermore, the Reserve Bank will be injecting cash into the economy without changing money supply. In this regard, banks will exchange existing RTGS balances for cash thus maintaining the monetary base unchanged,” Mangudya said in the statement.

He said financial institutions and agents were required to adhere to the Know Your Customer (KYC) and Customer Due Diligence (CDD) principles for all their customers at all times and ensure that there is no abuse of the payment systems.

The RBZ on Monday outlawed the cash-in and cash-out as well as cash-back facilities in an attempt to protect the transacting public from some mobile banking agents leveraging and abusing the payment ecosystems.