RBZ lifts ban on EcoCash cash-out, imposes $100 limit per transaction

The Reserve Bank of Zimbabwe (RBZ) has today brought back the cash-in, cash-out and cash-back facilities attached with stringent rules.

In a statement,  the RBZ advised payment system providers and agents that the cash-out facility is now capped at $100 per transaction with immediate effect. Existing operational cash in and cash-back limits shall remain.

“The Directive (NPS 01/2019) on cash-in, cash-out and cash-back facilities was issued to protect the transacting public from some mobile banking agents leveraging and abusing the payment ecosystems.

“Payment systems by their nature play an important role of providing a mechanism or highway to facilitate economic activities in the country. As such, the Reserve Bank continues to promote digital financial services which contribute to financial inclusion and stability. Cognisant of that, enhanced monitoring mechanisms have been put in place by both the Reserve Bank and Payment System Providers to mitigate against abuse of payment systems and ensure abusers are brought to book,” reads the statement

The RBZ said it will be injecting cash into the economy without changing money supply with banks exchanging existing RTGS balances for cash thus maintaining the current monetary base.

“Financial institutions and Agents are required to strictly adhere to the Know Your Customer (KYC) and Customer Due Diligence (CDD) principles for all their customers at all times and ensure that there is no abuse of the payment systems. Going forward, the Financial Intelligence Unit shall enhance monitoring of financial activities to ensure compliance.”

The Reserve Bank announced two days back that they have banned all  cash in, cash out & cash back facilities. The move by the central bank was to curb illegal activities by agents who were abusing the cash in, cash out and cash back facilities.

Mobile money giant Ecocash then threatened to shutdown its services if the ban was not lifted and they filed an urgent application at the High Court seeking to overturn the Reserve Bank of Zimbabwe’s ban.

RBZ has since lifted the ban and the cash-out facility is now capped at $100 per transaction.