The Reserve Bank of Zimbabwe has cancelled McDowells International's money lending licence with immediate effect following reports that the institution has been illegally mobilising deposits from the unsuspecting public.

In a statement, the RBZ indicated that the public is currently failing to access deposits amounting to $4 million from McDowells International.

The central bank also noted the institution has not been disclosing business conditions to clients while it has been imposing interest rates as high as 50% per month which translates to 600% annually.

RBZ Governor, Dr Gideon Gono announced the liquidation of the institution has commenced, adding the liquidator will be mandated through the High Court to dispose of the institution's assets.

This will include recovery of siphoned funds from shareholders' companies in order to reimburse the duped members.

The development comes a few days after the central bank had issued a stern warning to micro-finance institutions indicating that taking deposits is a banking activity which is a preserve of institutions registered as banks in terms of the Banking Act.

The public has heavily criticised money lending and microfinance institutions for fleecing unsuspecting borrowers. RBZ McDowells
Source: zbc

Most Read Stories

Kasukuwere denies Zimbabwe indigenisation policy changes | 9917 views
FNB, OK Zimbabwe launches SA-Zim instant cellphone banking | 5479 views
'Zimbabwe mining rights belongs to Mugabe,' says Mutambara | 5158 views
Air Zimbabwe flies 12 passengers to SA on board the Boeing 737 | 5157 views
Zimbabwe's unemployment rate tops 70% | 4942 views
Tich Mataz suspended | 4752 views