Once again Hon. Members, let me reiterate that cash challenges can only be addressed when we deal holistically with the challenge of low production and productivity, fiscal deficit, current account deficit and market indiscipline. The following measures are being undertaken by Government to address the structural rigidities:
1. Reducing Government expenditure to match with revenue;
2. Fostering market discipline through the existing legal instruments to minimise capital flight or externalisation and to promote the smooth circulation of money within the national economy;
3. Addressing low productivity to increase fiscal space, employment and exports through implementing investor friendly measures that include synchronising the indigenisation law to the localisation policy, ease and cost of doing business reforms, State owned enterprises reform and issuance of bankable 99-year leases;
4. Promoting exports and foreign exchange receipts from the diaspora through the export subsidy scheme being granted by the Reserve Bank; and
5. Promoting local production through the Statutory Instrument 64 of 2016 put in place by Government and the foreign exchange management system by the Reserve Bank.
BANK WITHDRAWAL LIMITS
9. HON. SEN. CHIEF SIANSALI asked the Minister of Finance and Economic Development to explain why banks are limiting withdrawals to a maximum of $100 per transaction from banks to Ecocash transfers, a situation which results in exorbitant charges to the user, a case in point being Agribank; and consider whether or not it would be prudent to allow withdrawals up to the maximum limit of $5000 per day.
THE MINISTER OF AGRICULTURE, MECHANISATION AND IRRIGATION DEVELOPMENT (HON. DR. MADE) on behalf of THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA): Bank to wallet transactions are not limited. However, banked individual customers transact up to $10 000 per month on their wallet with a daily limit of up to $5 000. Non-banked individual customers can transact up to $3 000 with a daily limit of $1 000. Merchants, farmers and SMEs can also transact on mobile wallets up to $50 000 per month depending on their category.
In line with the goal to encourage the use of electronic means of payments, the limits have been broadened to facilitate payments by the transacting public and business whilst taking cognisance of the anti-money laundering requirements which are key in any financial system. To this end, the transacting public is urged to move away from the culture of over-reliance to various electronic payment modes available in the country.
A cash withdrawal limit of US$5 000 is quite excessive by global standards.