Published: 12 August 2013

Banks have resolved to reduce charges on deposits in line with a Reserve Bank of Zimbabwe directive to increase savings in the economy, several half-year financial statements have revealed.

This comes after the conclusion earlier this year of a Memorandum of Understanding between the financial sector and RBZ entailing banks to pay an interest of four percent for deposits of $1000 and above held over 30 days.

The MoU also ensures that financial institutions charge 0,5 percent on cash withdrawal amounts.

Members of the banking public said while the slashing of charges is a welcome development, they are however concerned over whether the entire financial industry will comply.

The directive for banks to reduce charges has sparked debate among stakeholders with some arguing that it will have a negative impact on revenue inflows or profits.

Others have defended the move saying it will enable banks to tap more than $3bn estimated to be circulating outside formal channels.
- zbc

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