CONSTITUTIONAL law expert and opposition National Constitutional Assembly leader, Lovemore Madhuku has said the new Reserve Bank of Zimbabwe (RBZ) policy that puts a cap on minimal cash withdrawals by depositors discourages the public from using the banking system.
by Stephen Chadenga
Addressing a public lecture on constitutionalism and the rule of law at the Midlands State University on Friday, Madhuku said the RBZ policy had destroyed the trust between the banking sector and the public.
“Imagine after depositing your money, you are told you can only withdraw $1 000,” he said.
“If a person has $40 000, do you think they would take it to the bank? They will not because they will not (easily) get the money back. This is an example of a law that is already creating problems for the economy.”
Madhuku said the the RBZ and the Indigenisation Acts did not stimulate socio-economic development.
“When customers can only withdraw $1 000 from banks, we say that is rule of law because there is a law that allows the RBZ to do that,” he said. “But rule of law is not just a law. It’s a law that makes sense, develops the country and stimulates socio-economic development. The law should not be arbitrary and cause confusion.”