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Harare - Stanbic, Standard Bank's unit in Zimbabwe, has changed its terms and conditions. It is now telling depositors that withdrawals are subject to availability and that it reserves the right to pay funds in currencies recognised as legal tender in the country.
This comes as Zimbabwe is readying for the introduction of bond notes experts say are essentially a reintroduction of the Zimbabwean dollar. Banks in Zimbabwe have been in a dilemma over a biting cash crunch that has posed difficulties for businesses and other companies.
Queues at banks have become a common feature in Zimbabwe while most ATMs are running out of cash, leaving bank managers at the mercy of a fuming public unable to withdraw money.
Standard Bank has moved in to plug these woes, advising depositors on Tuesday to collect a document with new terms and conditions for service. The bank’s clients are supposed to sign off on the new service conditions.
“You, the client, depositor acknowledge that a deposit, regardless of the currency of such deposit, may not be immediately available for withdrawal by you.
"The withdrawal of funds from the account… is not unconditional and may be delayed and is subject to (i.) availability of such currency notes (ii.) any interruption, interception or suspension to the banking system,” said Joshua Tapambgwa, chief executive of Stanbic Zimbabwe, in a letter to clients.
Stanbic Bank Zimbabwe may “from time to time require prior written notification” of depositors’ intentions to withdraw money. Banks in Zimbabwe are currently limiting withdrawals to between $50 and $100 per day, amid calls by industrialists and economists for the informal adoption of the rand.
As the dollar shortage continues unabated and the Reserve Bank of Zimbabwe prepares to introduce local bond notes this month, Stanbic Bank Zimbabwe said it reserves the right to pay funds in one or more currencies recognised at the time as legal tender in Zimbabwe.
“Any conversion from one currency to another shall be at the rate of exchange quoted by the bank alternatively… if that rate of exchange is not quoted by the bank, then the rate of exchange shall be official rate of exchange recognised by the Reserve Bank of Zimbabwe,” added the bank’s chief executive.
Zimbabwe has issued a statutory instrument promulgating presidential powers to pave way for the introduction of the local bond notes, which the government says are backed by a $200m Afreximbank facility.
READ: Mugabe uses presidential powers to legalise Zim bond notes
“The tender payment of bond notes issued by the (central) bank shall be legal tender in all transactions as if each unit of bond note is exchangeable for one United States Dollar,” reads a part of the statutory instrument issued this week.
