Banks Defy Regulator’s Policy Stance

By Shingirai Vambe

HARARE – Zimbabwe’s banking system is in turmoil, with citizens increasingly opting to trade in cash and avoid using banks due to exorbitant fees and charges. This shift has led to a surge in cash heists and robberies across the country, with citizens feeling forced to take risks with their hard-earned money.

“It’s better to take chances with our money than to lose it to banks through unjustified charges,” said Tichaona Makomva, a street vendor, echoing the sentiments of many.

The Reserve Bank of Zimbabwe (RBZ) governor, John Mushayavanhu, acknowledged these concerns in his Monetary Policy statement, emphasizing the need to promote financial inclusion, growth, and confidence in the banking sector.

“The Reserve Bank is committed to ensuring that banks strictly adhere to a policy exempting accounts with balances below $100 from charges,” Mushayavanhu said. However, banks have largely ignored these efforts, continuing to deduct small amounts from both corporate and individual accounts.

“We are working with the Bankers Association of Zimbabwe to come up with mechanisms to minimize bank charges and encourage the use of e-cash,” Mushayavanhu added. Despite these efforts, citizens remain skeptical, with many opting for parallel means to manage their finances.

The chaotic financial system has contributed to a loss of business and trust in institutions that depend on prepayments and accounts, such as pensions and insurance companies. “The command exchange rate has pushed traders to the black market, where the US dollar is traded without measure,” said Richard Tsvangirai, Norton Member of Parliament.

The RBZ’s efforts to revitalize the inter-bank money market and enhance the monetary policy transmission channel have been met with resistance from banks. “Banks are more interested in making profits than serving their customers,” Tsvangirai said, criticizing the banks’ failure to comply with the RBZ’s directives.

Norton Member of Parliament, Richard Tsvangirai told Parliament that the disregard by financial institutions did not promote any financial inclusion.

“While the Reserve Bank of Zimbabwe (RBZ), through its recent Monetary Policy Statement (MPS), took commendable steps—such as exempting accounts with less than US$100, transactions below US$5, and all ZiG-denominated transactions from charges banks continue to impose unjustifiable service fees, especially for basic services like balance inquiries,” said Tsvangirai.

He told the Post On Sunday that the regulator has no teeth and more is needed to be done if the statement by RBZ Governor, was not just a cherry source.

“I moved the motion, calling on the Minister of Finance to stop banks from charging for balance inquiries and other services as highlighted in the MPS, rooted in the urgent need to close the inequality gap and promote financial inclusion,” added Tsvangirai.

He said this was particularly unfair to civil servants, who are receiving what can only be described as slavery wages. For someone earning so little, being charged just to check a balance is not only unreasonable, but also exploitative. These small but frequent deductions hurt the very people we should be supporting in particular young people and women.

“When we compare Zimbabwe to other countries in the region, such as South Africa, it becomes even more apparent how out of touch these charges are. In South Africa, most banks do not charge customers simply to check their account balances, especially on digital platforms or ATMs. Their systems are designed to encourage people to use banking services, not punish them for doing so,” said Tsvangirai.

The Post On Sunday reached out to the Reserve Bank of Zimbabwe (RBZ) for comment, and Kumbulani Shirichena responded, stating that the Monetary Policy Statement (MPS) is clear and punitive measures will be enforced against banks found to be non-compliant.

A rural teacher in Makoni District, who decided not to be named said These charges discourage financial engagement, contribute to poor entry into market trading, and push many people, especially those in the informal sector away from the formal financial system.

Norton Legislator concluded his comment to this publication and said, “this undermines the progress being made by the RBZ and contradicts our national goals for economic inclusion and equity. The motion therefore seeks not only fairness but alignment with regional best practices, urging the Minister of Finance,  Economic Development and Investment Promotion, Mthuli Ncube, to act and ensure that banks stop charging for balance inquiries and unjustified charges as stated in the MPS as part of a broader effort to close the inequality gap and promote meaningful financial inclusion.

Efforts to get comments from various banks contacted were futile and patiently waiting for them to respond to the questions sent to Public relations officers.

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