Banks withdrawal limits illegal, says BAZ

Published: 26 March 2014

Zimbabweans do not understand how banking systems work hence they usually get a raw deal from bankers who take advantage of their ignorance.

Addressing parliamentarians recently, Bankers Association of Zimbabwe president George Guvamatanga said banks were acting outside the law by imposing a withdrawal limit on customers.

"According to the law, the limit on withdrawals is illegal. Banks are supposed to give people their money on demand. If a customer puts his money into the bank, he should be able to get it whenever he wants it," he said.

He was answering a question from parliamentarians on whether bankers were within the law when they impose a withdrawal limit on customers and when they cannot get their money totally.

Most banks have a limit on the money that can be withdrawn from an ATM and people have to get inside the banking hall to get more. This usually becomes an inconvenience for the customer.

Guvamatanga said banks had not done anything over the years to educate the public on how the banks operate and how to make banking cheaper.

"If you have an account with a bank, you have to pay but there are different types of accounts. There are transactional accounts, where people can deposit money and should be able to get it on demand. Most accounts in the country are transactional accounts.

"There is also the savings account where one can put money into the account and we keep it for them for as long as they want. The money can gain interest when the client has come to the bank to say please keep this money for 3 months and the bank uses it for on-lending," he said.

He said the problem is that most people do not know that they can approach the bank and negotiate terms for their money.

"We as banks have done nothing to enlighten the public on how to make banking cheaper and we are trying to correct it," he said.

He said the challenge most banks were facing was the high cost of bringing the money into the country which had resulted in high charges as banks try to recover the costs incurred on transporting the money.
- bh24