eBusiness Weekly
Golden Sibanda
Cabs — the banking unit of Old Mutual Zimbabwe — says it has witnessed strong interest from clients keen on opening prepaid MasterCard accounts administered by the building society, an official said.
Deputy managing director Mehluli Mpofu, said CABS was on a drive to encourage clients to open foreign currency accounts; most recently the call for opening of prepaid MasterCard accounts.
His comments follow market rumour that CABS once invited clients to open prepaid accounts and to deposit a prescribed amount in US dollars (US$3 000 limit), but closed the accounts shortly after.
There were claims the building society made clients to open the accounts and fund them with hard currency, but after just a month allegedly closed the accounts and reimbursed the funds without interest.
CABS, this publication was told, indicated other partners in administering the service, had opted out.
A source who spoke to Business Weekly expressed concern that someone acted mischievously, took people’s foreign currency, speculated with it and shortly after returned without any interest.
But Mpofu flatly dismissed the claim saying such practice went against the essence of any bank’s core mandate for existence, which is to encourage prospective account holders to open bank accounts.
He said cases existed of people who had issues with the building society to the point of having their accounts closed. When this happened, he said, the banks provided full explanation on the reasons.
The CABS deputy MD said the financial institution had several clients with US dollar balances well in excess of $3000, which was the prescribed limit for the prepaid MasterCard accounts the bank is promoting.
“The interest (to open prepaid MasterCard accounts) is there, just that you fund these accounts US dollars and not everyone has those US dollars. Those with the need, yes they are coming through and they are opening those accounts,” Mpofu said.
While at one point most banks suspended debit card accounts over worsening foreign currency issues, a number have resumed the service following an improvement in circumstances.
This also comes after the central bank late last year directed banks to maintain separate sets of nostro or foreign currency accounts and real time gross settlement (RTGS) account balances.
The directive by central bank Governor John Mangudya was aimed at encouraging individuals and corporate with free foreign currency to remit to Zimbabwe and keep the funds in local FCAs.
Previously, one would have their nostro balances mingled with RTGS balances, while they would not be able to access most of their hard currency when they eventually needed such money.
Many individuals are struggling to make foreign payments, which require hard currency, due to the severe foreign currency shortages the southern African country is presently battling against.
