No more bank charges for low-cost accounts

Vusumuzi Dube
The Reserve Bank of Zimbabwe (RBZ) has announced the scrapping of bank charges for low-cost accounts.
In his first Monetary Policy Statement last Friday, new RBZ Governor Dr John Mashayavanhu said the decision was a response to the long standing issue of maintenance fees which were burdening depositors with negative balances, leading to a discouragement of savings.
He said the RBZ would continue monitoring pricing of banking products and services, and enforcing the pricing framework agreed upon with the Bankers Association of Zimbabwe.
“Cognisant of calls by the banking public for affordable and reasonable bank charges, the bank is with immediate effect directing all banking institutions to put exemption clauses on monthly maintenance or service charges for both FCA and ZiG deposit accounts that maintain a consecutive minimum daily balance of US$100 and below or its equivalent in ZiG for a period of up to 30 days.
“This will avoid incidences of low-cost accounts being charged maintenance fees to the point where accounts reach negative balances and, in the process, prejudice depositors and discourage potential savings,” said the RBZ Governor.
Dr Mashayavanhu said they envisaged that as banks embarked on accelerated digital transformation, the institutions would achieve operational efficiencies that impacted positively on the cost of services.
He said all banking and microfinance institutions were required to establish, implement, and maintain effective and transparent procedures for the reasonable and prompt handling of customer complaints. The procedures should facilitate complaint resolution promptly in line with the principles of the Consumer Protection Framework.
“The adoption of sustainability principles is increasingly becoming a key pillar to the sustainable growth of economies. Against this background, the Bank continues to work constructively with banking institutions to ensure that the transition to a more sustainable, environmentally, and socially responsible financial sector becomes a reality.
“With effect from the quarter ending 31 March 2024, boards of banking institutions are required to ensure that sustainability considerations are integrated into the institution’s overall business strategy and are part of the agenda for board meetings. In addition, the board should integrate sustainability into the board governance system,” he said. – Sunday News