Government Demands Banks Reduce Charges

by ZimTimes Correspondent

Government has called on banks to adjust their exorbitant charges, stating that the current fee structures are hampering financial inclusion efforts in the country.

Speaking at the 2024 ICAZ Winter School in Victoria Falls, Finance, Economic Development and Investment Promotion Deputy Minister David Mnangagwa said the time has come for the authorities to consider issuing directives to rein in excessive bank fees.

“Right now we are saying let us engage. We leave it with the monetary authorities but the clock is ticking on the issue of bank charges,” Mnangagwa said during a panel discussion.

Some banks in the country charge as high as 3.5% for over-the-counter cash withdrawals, while the minimum fee for ATM withdrawals can be as much as ZiG34 or 2.5% of the transaction amount.

Account maintenance fees can be as steep as ZiG60 per month at certain financial institutions, and consumers can be charged up to ZiG6.50 for a ZiG90 Zipit electronic transfer.

Mnangagwa emphasized that these prohibitive charges are undermining the government’s financial inclusion agenda, which seeks to bring more citizens, particularly those in rural and low-income communities, into the formal banking system.

“Bank charges have become a major barrier, pricing out a significant portion of the population from accessing basic financial services,” he said. “This is an issue we can no longer ignore, and we will engage the monetary authorities to find a lasting solution.”

The deputy minister’s remarks come amid growing public discontent over the high cost of banking services in the country. Consumer advocates have long called for the regulation of bank fees to protect the interests of account holders.

With the government now signaling its intention to intervene, bankers may soon face increased pressure to review their pricing models and enhance the affordability of their offerings.