RBZ Scraps Bank Charges for Transactions Below $5

Bank charges have long been a burden for Zimbabweans, eating away at savings and discouraging the use of digital payments. Many account holders have experienced situations where they deposit $100 into their bank accounts, only to find their balance significantly reduced after a few months due to various deductions. In an effort to address this issue, the Reserve Bank of Zimbabwe (RBZ) has introduced a new policy aimed at easing these costs for low-value transactions.

New Policy on Bank Charges

Under the new directive, accounts with balances below $100 will now be exempt from bank charges. Additionally, transactions below $5, whether in USD or the Zimbabwe Gold (ZiG) equivalent—will not incur any bank charges. This is a welcome relief for consumers who frequently make small payments for everyday expenses such as lunch or parking fees.

However, for transactions exceeding $5, a 2% government tax will still apply, along with a 1% bank charge. The RBZ's goal with these measures is to encourage the use of digital transactions over cash, aligning with its broader financial inclusion strategy.

Despite this development, the cost of banking in Zimbabwe remains a concern. Because of the removal of bank charges for balances below $100, many workers may now prefer to withdraw their entire salaries as soon as they are paid to avoid excessive deductions. For instance, an average worker earning $250 per month may lose a portion of their salary if they leave the money in their account beyond month-end due to maintenance fees.

Monthly account maintenance fees also remain steep. Steward Bank charges $5 per month for current account holders, while Stanbic Bank imposes a hefty $20 monthly fee for business accounts. These high banking costs continue to discourage Zimbabweans from fully embracing formal banking systems.

While the scrapping of charges for small transactions is a step in the right direction, the RBZ still has more work to do in making banking more affordable and accessible. Lowering maintenance fees and reducing transaction costs further could go a long way in restoring public confidence in the banking sector and encouraging wider adoption of digital payments.