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Zimbabwe's central bank imposes ATM fee reduction

December 12, 2016

Noting that "while cash withdrawal limits have [been] reduced significantly during the second half of 2016, there has not been a proportionate reduction in the level of bank charges," the Reserve Bank of Zimbabwe has ordered a reduction in fees for over-the-counter ATM withdrawals.

The downward adjustment becomes effective as of today, Dec. 12, according to a press release from RBZ.

"In order to align cash withdrawal charges to amount withdrawn, a proportional pricing model has been adopted to replace the current fixed charges," RBZ Governor Dr. J.P. Mangudya said in a statement. "The applicable charges for cash withdrawal is a maximum of 1 percent and 1.25 percent of amount withdrawn for ATM and over-the- counter, respectively." (see box)

According to the release, the Reserve Bank will continue to monitor the cost of bank charges "to ensure access to affordable banking services and at the same time promote the use of plastic money."