Banks ben­e­fit­ing from cash cri­sis

Chronicle (Zimbabwe) - - National News -

EDITOR — It is in­ter­est­ing to note that since the beginning of the cash cri­sis, banks have put a big smile on their faces, while the pub­lic is suf­fer­ing.

If ev­ery with­drawal of $100 car­ries a fee of $4, it means for a per­son to ac­cess $1 000 they would have to pay $40.

When a per­son with­draws $1 000 for the same with­drawal fee, it means the pub­lic have to fork out more than be­fore.

The Re­serve Bank Gov­er­nor did not look into this fac­tor when cash short­ages started. He has en­cour­aged peo­ple to use plas­tic money. This, how­ever, comes with puni­tive costs to the bearer be­cause there was no thought of slash­ing the charges so that it en­cour­ages peo­ple to trade elec­tron­i­cally.

Peo­ple have been made to bankroll ac­tiv­i­ties of the fi­nan­cial ser­vice sec­tor in a way that is tan­ta­mount to fraud be­cause all these fac­tors were never ex­plained to the pub­lic.

And the other is­sue is that the ru­ral pop­u­lace was never fac­tored in when they en­cour­aged peo­ple to use plas­tic money.

Such fa­cil­i­ties are not at the dis­posal of ru­ral peo­ple, hence they are prej­u­diced when they carry out their daily trans­ac­tions.

Cash with­drawals by low level em­ploy­ees have left them car­ry­ing huge costs of Point of Sale trans­ac­tions and cash with­drawal charges.

It doesn’t mat­ter if it is 20 cents per trans­ac­tion be­cause that small amount should have ben­e­fited them in buy­ing their child a ball­point pen.

Banks ap­pear to sym­pa­thise with the peo­ple yet they are not.

Pro­duc­tive time is be­ing lost by peo­ple spend­ing hours queu­ing for their pal­try salaries.

Why should the pub­lic be made to meet POS costs? Why can’t the RBZ ab­sorb such costs?

At the end of the day it is the banks that see their prof­its surg­ing be­cause they are ben­e­fit­ing from the cash short­ages. Chipochedenga Bewu, Via email

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