The Reserve Bank of Zimbabwe has reversed its decision to ban cash in and cash outs from mobile money transfer platforms after it introduced new caps for the facility.
Government on Monday ordered the shutdown of the cash-in and cash-out facilities citing Section 10 of the National Payment Systems Act in an attempt to stem illegal foreign currency trades which has seen the US$:ZWL$ rate hitting its lowest point since the reintroduction of the multicurrency system. The local unit lost 80 percent of its value in less than three months.
EcoCash became operational in 2011 and has helped to drive financial inclusion by reaching to the remotest parts of the country where banks found it untenable to open branches.
A day later, Cassava Smartech, the parent company of EcoCash, has made an urgent chamber application seeking a temporary interdict seeking to reverse government’s decision to bar cash-ins and cash-outs under mobile money platforms.
“Cognizance 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,” the central bank said in a statement.
“To this end, Payment System Providers are hereby advised that cash-out facility is now capped at $100 per transaction with immediate effect.”
The apex bank also announced that it would inject cash into the economy “without changing money supply.”