By Dorcas Rumano

The Reserve Bank of Zimbabwe (RBZ) has issued a directive in terms of section 10 of the National  Payment Systems Act  Chap:24:231 which bans cash-in, cash-out and cash-back  facilities.

The National  Payment Systems Directive (NPS 01/2019) written by the RBZ Deputy Director for Financial Markets, National Payment Systems Mr Josephat Mutepfa reads, “It has come to the attention of the RBZ 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 country.

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 directive went on to say, “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.

“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 are reminded of the need to ensure that the entire eco-system operate within the confines of law and enforce compliance.”

The national payment systems directive has been issued following the exorbitant tariff charges by most ecocash agents on cash-in, cash-out and cash back charges.