RBZ has given a blow to Econet as they have told Mobile Money Service Providers to remove Cash In, Cash Out and cashback facilities in a bid to crack down on illegal currency trading.
This is hard news to the Zimbabweans because there is cash shortages in the country EcoCash was making things seem better irrespective of the percentage charges that was occurring.
The question that’s in the mind of is where does this action of removing mobile lead us in an economy such as this? The percentage charges was a hard thing for the people but the people had found a way to live with.
Below is the information sent by RBZ to the told Mobile Money Service Providers:
RE: DIRECTIVE ISSUED IN TERMS OF SECTION 10 OF THE NATIONAL PAYMENT SYSTEMS ACT ‘CHAP: 24:231 ON CASH-IN. CASH-OUT AND CASH-BACK FACILITIES
‘1. 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.
2. 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.
3. 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.
4. 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.
5. Furthermore, all economic agents arc, with immediate effect. directed to discontinue cash-back facilities.
6. 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.
Please be guided accordingly.
J. Mutepfa (Mr.) DEPUTY DIRECTOR FINANCIAL MARKETS, NATIONAL PAYMENT SYSTEMS 30 September 2019’
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