RBZ Bans Some Ecocash Services as it Seeks to Stop Abuse of the Platform

In a shock move, the Reserve Bank of Zimbabwe has reportedly banned the use of some Ecocash services with immediate effect.

Mobile money agents to have been told to stop providing Cash-in, cash-out and cash-back services. It seems that the move has been taken to stop ‘illegal activities’ being done through the system. 

The full text of the circulating statement reads;

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 are, with immediate effect. directed to discontinue cash-back facilities.
6. Banks, mobile payment system providers and other economic agents are reminded of the need to ensure that the entire ecosystem operate within the confines of law and enforce compliance.
7. Please be guided accordingly.

J. Mutepfa (Mr.) DEPUTY DIRECTOR FINANCIAL MARKETS, NATIONAL PAYMENT SYSTEMS 30 September 2019

RBZ recently gazetted a Statutory instrument that stated that businesses are not supposed to quote, charge and display prices in USD.

 

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