RBZ urged to reduce bank charges

Published: 10 hours ago

The Zimbabwe Taxpayers Platform (ZITAP) has called on the Reserve Bank of Zimbabwe (RBZ) to review and lower prevailing bank charges, warning that high service fees are discouraging citizens and businesses from using formal banking channels and undermining financial inclusion.

In a letter submitted this month to RBZ Governor John Mushayavanhu, ZITAP highlighted that transaction fees, monthly maintenance charges, and the 2% intermediated money transfer tax (IMTT) have become increasingly burdensome, particularly for smallholder farmers, informal traders, small-scale miners, workers, and emerging entrepreneurs - groups that form the backbone of the economy.

"From transaction fees to monthly maintenance charges, these costs are eating into incomes and pushing economic activity back into informal systems," the organisation said.

According to ZITAP, monthly banking fees in Zimbabwe range between US$15 and US$25, depending on transaction volumes. When combined with the IMTT, these costs penalise citizens and businesses for complying with government directives to bank and transact digitally.

"These bank fees further erode incomes that are already generally lower than similar jobs within the Southern African Development Community (SADC) bloc," the platform noted, warning that high charges are indirectly encouraging ‘pillow banking,' where individuals and businesses keep cash outside the formal financial system.

ZITAP urged the RBZ to undertake a comprehensive review of prevailing fees to establish a more equitable and transparent structure aligned with national development goals under Vision 2030. The platform argued that reduced banking costs would promote financial inclusion, stimulate savings, encourage investment, and build trust in the financial system.

"The sustainability of the banking sector should not rely on high service fees but on a thriving, inclusive credit economy," the group said. "When more citizens participate in the formal financial system, bank charges would naturally decline due to larger transaction volumes and improved liquidity, leading to greater financial inclusion and the collapse of the informal forex market."

ZITAP's intervention comes amid growing public concern over the affordability of banking services in Zimbabwe, particularly for low-income earners and small businesses struggling to cope with multiple fees and taxes while attempting to operate within the formal economy.
- NewsDay

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