RBZ Orders Banks to Slash Punitive Charges in Push for Financial Inclusion

Zimbabwe’s central bank has ordered commercial banks to cut what it describes as punitive charges, escalating regulatory pressure on the financial sector amid growing public frustration over high transaction costs.

In a letter dated January 29, 2026, Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu instructed banks to urgently review and reduce their fee structures, warning that the sector had come under “heavy scrutiny and criticism” over escalating charges.

The directive aligns with government policy objectives under the National Development Strategy (NDS 2), which prioritises financial inclusion and confidence in domestic financial institutions.

“Further to our meeting on ease of doing business, the banking sector has come under heavy scrutiny and criticism for high bank charges and fees,” Mushayavanhu said in the letter seen by *Business Times*. “The banking sector should reduce charges and fees to promote financial inclusion and enhance public confidence in using domestic financial institutions.”

He urged banks to submit revised, reduced fee structures and to reward savings, particularly in light of the current low-inflation environment.

### Concerns Over High Charges

The intervention follows mounting concern that banks have increasingly relied on non-funded income — especially fees and commissions — rather than traditional lending. While this strategy has kept institutions profitable in a fragile economic environment, depositors have faced steep account maintenance fees, transaction costs and withdrawal charges, with minimal returns on savings.

Authorities fear the high charges are discouraging savings and driving economic activity back into informal, cash-based channels.

Finance, Economic Development and Investment Promotion Minister Mthuli Ncube recently described prevailing bank fees as excessive and damaging to productivity.

“We are aware that monthly account service charges can be as high as US$15 for individuals and US$20 for corporates. Withdrawal charges can reach up to 3% of the transaction value, while money transfer and bill payment fees range between 1.5 and 3%,” Ncube said.

He indicated that a comprehensive report on the cost of doing business in the financial services sector would soon be presented to Cabinet as part of broader reforms aimed at improving competitiveness, compliance and growth.

### Consumer Reaction

The directive has been welcomed by consumer advocates. Consumer Council of Zimbabwe chief executive Rosemary Mpofu described the move as long overdue.

“The directive by the Reserve Bank of Zimbabwe to reduce bank charges is a progressive step toward protecting consumers and improving affordability within the financial sector,” Mpofu said.

She noted that lower fees would ease transaction costs for low-income earners, small and medium enterprises (SMEs), and informal traders, while strengthening trust in the banking system.

### Sector Impact

Analysts say the regulatory push could force banks into a challenging adjustment phase, particularly institutions heavily dependent on non-interest income. While reduced fee revenue may affect short-term profitability, policymakers argue that stronger deposit mobilisation, wider financial participation and deeper economic formalisation will generate longer-term stability and growth.

The RBZ is now awaiting submissions from banks outlining their revised fee structures, signalling what could become one of the most significant financial sector adjustments in recent years.