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Breaking: RBZ bans Cash In, Cash Out and Cash Back services

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The Reserve Bank of Zimbabwe has given a directive to Mobile Money Service Providers to remove Cash In, Cash Out and cashback facilities in a bid to crackdown on illegal currency trading.

According to a statement released by the central bank today, some economic agents are engaging in illegal activities to abuse mobile money platforms, in the process compromising the purpose of the national payment systems.

“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.

“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,” reads the statement.

“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.

“Banks, mobile payment system providers and other economic agents arc reminded of the need to ensure that the entire ecosystem operates within the confines of the law and enforce compliance,” reads part of the statement.

The development comes a week after people within the Great Dyke raised a red flag over excessive premiums charged by EcoCash agents when withdrawing cash, saying this was unlawful, inflationary and eroded recent salary increases awarded to most workers, including civil servants.

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