RBZ raises cash withdrawal limits

Zim Now Writer

The Reserve Bank of Zimbabwe’s Financial Intelligence Unit has directed banks to increase cash withdrawals for individuals from $5 000 to $15 000 per week and corporates from $100 000 from $20 000.

In a memo dated February 9, 2023, FIU said hospitals and clinics can withdraw up to $500 000 per month while the limit has been set at $1 million for local authorities.

It also indicated that individuals and corporates have the option to withdraw the maximum weekly amount in a once-off transaction or in lesser amounts that shall not exceed the restricted limit.

However, courts, the Parliament, and international organisations are not subjected to withdrawal limits.

“In order to efficiently serve the banked customers, the Financial Intelligence Unit has come up with several cash withdrawal limits that banks should apply when processing cash withdrawals for their customers,” said FIU director-general Oliver Chiperesa.

FIU said where a customer has a valid need to withdraw cash above the stipulated limit, the bank shall continue to submit such applications to the FIU, clearly setting out the special grounds for the request.

Zimbabwe National Statistical Agency last week said nearly 80 percent of local transactions were now in foreign currency.

Last year, the government passed legislation to establish the multi-currency system, which makes both the United States and Zimbabwe dollars legal tender for all local transactions for the duration of the National Development Strategy 1.

There has been remarkable growth in the use of US dollars, including loans to corporates and individuals, payments of utility bills and local authorities, and salary payments.