Cash in, Cash back, Cash out ban – what it means
It is worth noting that the Reserve Bank of Zimbabwe (RBZ) has taken steps further in trying to stabilise the financial mess that has hit the nation
By Mirirai Ngoya
With the quick directive issued in terms of section 10 of the National Payment System Act ( chapter 24:23) on cash in, cash out and cashback facilities have been stopped.
Adding on the law emphasizes that all economic agents are also with immediate effect directed to discontinue cashback facility, therefore, banks mobile payments system providers and other economic agents are reminded of the need to ensure that the entire ecosystem operates within the confines of laws and enforce compliance.
One of Zimbabwe’s highly, respected Miner, Eng Chris Murove commented,
“Indeed it is. But people should be aware that ecocash or mobile money has not been banned. It is the link between eco cash and others (electronic money) and bond notes (physical cash) that has been disabled. This was allowing arbitrage opportunities through the charging of a premium rate which had gone to over 50%. It is a brilliant move by the Reserve Bank to cut the source of inflation in the economy. Ecocash is now just like any other electronic money, similar to that represented by bank cards. The next move I predict will be the introduction of new Zim dollar notes within the next week or so to improve liquidity”
The new law states that all mobile payment systems providers and merchants are directed to discontinue, this signifies that the government has taken up strides to cut down the unreasonable high percentage rates charged to the citizens for access to their money.
This will likely see a new currency being introduced or more bond notes into circulation.