The Reserve Bank of Zimbabwe (RBZ) has slashed cash withdrawal charges to ensure banking products and services remain affordable.

This follows an outcry from the public after banks continued to charge the same rates despite significantly reducing their daily withdrawal limits due to the current cash shortages.

The new charges are now set at a maximum of 1 percent for an amount withdrawn at an automated teller machine (ATM) and 1.25 percent over the counter.

Previously, banks have been charging between 3 U.S. dollars and 5.5 U.S. dollars for every cash withdrawal.

"The Reserve Bank has noted that while cash withdrawal limits have reduced significantly during the second half of 2016, there has not been a proportionate reduction in the level of bank charges," the RBZ said in a statement released Sunday night.

"Against this background and as part of the on-going efforts to promote financial inclusion and to ensure that banking products and services are affordable to the banking public, the Reserve Bank has reviewed cash withdrawal charges downwards with effect from 12 December 2016," the statement said.

Most banks have reduced their daily withdrawal limits to as little as 20 U.S. dollars over the past few months following the cash shortages which began early this year.

Two weeks ago, the RBZ introduced bond notes in an effort to ease the liquidity crunch.

source: Xinhua