Harare-The Reserve Bank of Zimbabwe (RBZ) has banned the cash in, cash out and cash back facilities citing abuse of the facilities by agents.
In a statement signed by the deputy financial markets, the central bank said activities by these agents have been compromising the public.
“It has come to the attention of the Reserve Bank of Zimbabwe that some economic agents are engaging in illegal activities abusing the cash-in, cash-out and cash-back facilities thereby compromising the public interest objectives of national payment systems in the economy,” read the statement
The RBZ said activities included the buying and selling of cash above approved charges.
“Notable activities include the buying and selling of cash through mobile money agents at high rates above the approved charges for cash-in and cash-out with some economic agents not banking cash sales under the disguise of cash-back services.
“The charging of commissions outside the approved framework adversely affects the smooth operation of payment systems and have the negative effect of distorting pricing of goods and services,”
It added “In view of the above, all mobile payment system providers and merchants are hereby directed to discontinue cash-in and cash-out with immediate effect,”
“Furthermore, all economic agents are, with immediate effect directed to discontinue cash-back facilities,”
The central bank urged banks, mobile payment system providers and other economic agents that they “are reminded of the need to ensure that the entire ecosystem operate within the confines of law and enforce compliance”
Mobile money transfers had become a thorn in the flesh for ordinary citizens as they were charged between 50% and 60% per transaction.
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