Harare (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) on Thursday cancelled the banking license of Avis Bank Limited over failure to start operations after being granted a licence last year.

In a statement, the apex bank said Avis Bank Limited had been granted a merchant banking licence but had failed to start operations.

“It is hereby notified, in terms of Section 14 of the Banking Act (Chapter 24:20), that the Registrar of Banking Institutions has cancelled Avis Bank Limited license with effect from the date of this notice,” the RBZ said.

Avis Bank Limited was licenced on June 7 last year, but the RBZ said it had even failed to put in place requisite systems and structures for banking.

“Having failed to meet licensing conditions, the institution did not have any depositors on its books.
Accordingly, the Registrar has cancelled the bank’s license in terms of Section 14 (1) (i) of the Banking Act (Chapter 24:20).
Members of the public are accordingly advised not to undertake any banking business with the institution,” the RBZ said.

Over the years, the central bank has cancelled several bank licences for various offences, resulting in depositors being prejudiced.

This explains, partly, why the public is averse to keeping money in banks.

New Ziana