HARARE, May 14 (NewsDay Live) – Zimbabwe has capped bank cash withdrawal charges at 2% for both U.S. dollar and Zimbabwe Gold (ZiG) transactions, under financial sector reforms aimed at lowering banking costs and expanding financial inclusion.
Finance Minister Prof. Mthuli Ncube announced on Tuesday that Cabinet had approved a package of reforms, including lower cash withdrawal fees. However, the Reserve Bank of Zimbabwe (RBZ) had already implemented the measure in its 2026 Monetary Policy Statement issued on Feb. 27.
RBZ Governor Dr. John Mushayavanhu directed banks and deposit-taking microfinance institutions to cap withdrawal charges at a maximum of 2% of the amount withdrawn, covering both ATM and over-the-counter transactions in USD and ZiG. The directive took effect on March 31.
The cap prevents banks from charging higher withdrawal rates, although institutions may set fees below 2%.
Previously, some banks charged more for teller withdrawals than ATM transactions. Under the new rules, the same ceiling applies across all channels.
For a worker withdrawing US$200 a month in two US$100 transactions, withdrawal costs fall from US$6 per month at a 3% fee to US$4 under the new cap, producing annual savings of US$24.
A customer withdrawing US$500 in one monthly transaction would save US$60 annually.
The reform also changes the cost comparison between bank withdrawals and mobile money cash-outs.
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EcoCash, Zimbabwe’s largest mobile money platform, charges a 1.3% service fee on USD cash-outs between US$5 and US$500. A 2% Intermediated Money Transfer Tax (IMTT) is then added on USD transactions of US$5 and above, taking the total cost of cashing out US$100 to about US$3.30.
By comparison, the maximum bank withdrawal fee on US$100 is now US$2, making bank withdrawals cheaper by roughly US$1.30 per transaction where banks apply the full 2% charge.
The reforms announced by Cabinet also include lower mobile money transfer charges, zero-fee bank accounts for micro, small and medium enterprises (MSMEs), reduced RBZ supervision fees, removal of some rural branch licence fees, a 50% reduction in Securities and Exchange Commission registration and licence charges, and a review of import duty on ATM equipment.
The Finance Ministry said the measures were intended to “deepen financial inclusion and expand access to affordable financial services”.
However, the reforms do not remove all transaction-related costs.
A proposed additional cash withdrawal levy of 2% to 3%, floated in the 2026 National Budget, was dropped in December 2025 after public opposition. But the existing 2% IMTT on USD electronic transactions remains in place.
Depending on how transactions are classified, some customers could still face combined costs of up to 4% when IMTT is added to bank charges.
Bankers Association of Zimbabwe chief executive Fanwell Mutogo welcomed the reforms but said broader issues, including the IMTT, still needed to be addressed to rebuild confidence in the banking sector.
The fee cap may also affect bank earnings. CBZ Holdings reported about US$143 million in fee and commission income in 2025, and analysts say banks may respond to lower fee income by increasing other charges or shifting focus toward lending.
For many Zimbabweans, the immediate benefit is modest but measurable. A worker withdrawing US$200 a month saves about US$24 annually under the new cap.
