RBZ increases cash withdrawal limits

The Reserve Bank of Zimbabwe (RBZ) has increased cash withdrawal limits for different categories of banking clients.

The central bank’s Financial Intelligence Unit (FIU) directed banks to increase cash withdrawals for individuals from ZW$5 000 to ZW$15 000 per week, The Herald reported citing a memo sent to all banks.

Withdrawal limits for corporates have been raised to ZW$100 000 from ZW$20 000. Hospitals and clinics can withdraw up to ZW$500 000 per month while the limit has been set at ZW$1 million for local authorities.

Individuals and corporates can withdraw the maximum weekly amount in a once-off transaction or in lesser amounts that shall not exceed the stipulated limit.

Courts, the Parliament, and international organisations are not subjected to withdrawal limits. FIU director general Oliver Chiperesa said in the memo dated February 9, 2023:

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.

Banks may allow the customer to withdraw the amount in a once-off transaction for the week or month, or in lesser amounts, in the aggregate, and shall not exceed the set limit in week or month. Banks are required to undertake due diligence when processing cash requests for customers to ensure the facility is not for criminal activities.

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.

The FIU will not grant any such request unless satisfied that no other forms of payment are reasonably available to the customer.

The move comes after last week the apex bank said 70 per cent of local transactions were now in foreign currency.