AfrAsia Bank sets $300 daily withdrawal limits

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AFRASIA Bank has introduced cash withdrawal limit of $300 /day for its customers in a bid to manage cash shortages as the tight liquidity crunch continues

AFRASIA Bank Zimbabwe Limited (formerly Kingdom Bank) has introduced an intermittent cash withdrawal limit of $300 per day for its customers in a bid to manage cash shortages as the tight liquidity crunch continues to bite on the operations of the financial institution.

GAMMA MUDARIKIRI OWN CORRESPONDENT

The bank has for the past week been limiting cash withdrawal and disabled automated teller machines (ATMs) at some of its branches in Bulawayo attributing the move to the prevalent cash shortages the financial sector is facing. Sekai Chitemerere, head of public relations and corporate communications, said due to the prevailing liquidity constraints in the economy the bank had introduced cash-in-transit operations between Harare and in branches in Bulawayo, Gweru, among many others, forcing it to limit cash withdrawals.

“In an effort to ensure that all our clients have access to available cash on such isolated and particular days, branches have had to introduce intermittent and intra-day daily withdrawal limits for individuals and corporates in our banking halls,” said Chitemerere.

Commenting on non-functioning ATMs, she said the bank was currently in the process of upgrading its network to improve connectivity adding that the bank was optimistic that clients would soon begin enjoying seamless service ATMs, ZimSwitch and Point of Sale (POS) facilities.

The bank has been going through turbulent times.

Last year it was reported that the bank was facing censure by the Reserve Bank of Zimbabwe (RBZ) after it emerged that the financial institution was reeling under a massive $21 million under-performing loan and could be placed on recuperative curatorship to protect depositor funds and the banking sector. The bank was also in January this year listed by the RBZ among the seven most troubled banks in the country capitalised at $7,94 million as at September 30 2013.

However, the bank recently announced that it had completed the phase of raising $20 million capital out of the targeted $100 required to fully capitalise it.

This was after founder and major shareholder, Nigel Chanakira, sold his 30% stake to Mauritius-based AfrAsia Holdings Limited in a cash and equity deal that could see him take over Arabia’s 35,7% interest in the company’s Botswana unit. AfrAsia moved into Kingdom in January 2012 after acquiring a 35% stake for about $9,5 million as the bank looked for new investment in order to meet statutory minimum capital requirements.