RBZ Implements New Policy to Promote Digital Payments by Eliminating Charges on Small Transactions

RBZ Eliminates Charges for Electronic Transactions Under US$10 to Promote Digital Payments

The Reserve Bank of Zimbabwe (RBZ) has announced a significant change in its monetary policy by removing charges for electronic cash transactions under US$10, or its equivalent in Zimbabwe Gold (ZiG).

This move, effective from September 1, 2024, is designed to encourage the use of digital payment methods across the country.

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RBZ’s Initiative to Boost Digital Transactions

In his 2024 Mid-Term Monetary Policy Statement delivered on August 30, RBZ Governor John Mushayavanhu detailed the rationale behind this policy shift.

“To further promote the use of electronic means of payment, the Reserve Bank is, with effect from September 1, 2024, exempting electronic transactions of less than US$10 or the ZiG equivalent from bank charges,” Mushayavanhu stated.

The RBZ aims to make small electronic transactions more accessible by eliminating associated costs, thereby encouraging a broader adoption of digital payment methods. This policy is aligned with the central bank’s ongoing efforts to foster a digital cash economy in Zimbabwe.

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Addressing the Cash Crisis

This decision comes in response to an ongoing cash crisis in Zimbabwe, exacerbated by a shortage of ZiG coins and notes since their introduction in April. Mushayavanhu highlighted the central bank’s strategy to mitigate these issues.

“To ensure increased circulation of ZiG in the economy, the following measures will be undertaken: increasing the injection of cash in line with demand while preserving ongoing initiatives to entrench the country’s cash-lite economy; continuing to inject more small ZiG denominations into the economy to ease the problem of change and eliminate the rounding up of prices by businesses,” he explained.

Expanding Access to ZiG

Mushayavanhu also emphasized efforts to enhance the distribution and circulation of ZiG, particularly in rural areas.

“We are committed to expanding Homelink outlets in rural areas to improve access to ZiG and support the broader financial inclusion goals of the central bank,” he added.

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