BOZ bans unwarranted bank charges and fees
By Staff Reporter
THE Bank of Zambia (BOZ) has banned unwarranted charges and fees imposed by commercial banks on their customers.
And economist Dr Lubinda Habazoka says effective Tuesday this week, the unwarranted charges and fees charged by banks were illegal.
According to a circular signed by BOZ Deputy Governor, Operations, Dr Bwalya Ng’andu on September 3, 2018, 26 charges and fees imposed by commercial banks on their customers have been banned as published in the Government gazette number 6693 on August 31, 2018.
According to the government gazette, the purpose of the directives was to isolate and prohibit the charges and fees which the bank of Zambia deemed unwarranted.
“A financial service provider that contravenes any provision of these directives commits an offence and is liable upon conviction, to a fine not exceeding two hundred thousand penalty units or to imprisonment for a period not exceeding two years, or to both,” reads the gazette.
According to the gazette, the following charges are deemed to be and are hereby prohibited:
- Charge for account opening for both local and foreign currency
- Charge for over the counter withdrawals (where the amount and/or denominations being withdrawn cannot be dispensed by the ATMs).
- Charge for cash deposit made by a third party into a. Customer’s account
- Automated Teller machine surcharge
- Charge for cash deposit on Automated Teller Machine
- Charge for aborted ATM cash withdrawals
- Charge for ATM pin reset
- Charge on basic Savings Account (without cheque book).
- Monthly maintenance fees on basic savings accounts (without cheque book)
- Charge for transfer of funds between retail accounts domiciled in the same bank
- Charge for transfer of an account from one branch to another branch of the same bank.
- Point Of Sale (POS) transaction (own bank customer and other bank customers).
- Additional charges arising from an initial charge generated by the bank (where a customer’s account has been overdrawn by a debit transaction initiated by the bank, the customer will not incur charges for the overdrawn balance).
- A charge for the closure of a customer’s account, which has operated for more than six months
- Charge for re-activating a bank account
- Charge for statement of account upon closing of the account, provided the customer has not received a free statement for the month.
- Charge for Monthly Account Statement (customers are entitled to a free statement per month. However, a charge may apply for any additional statement).
- Charge for balance and other account inquiries by a customer over the counter or any electronic platform.
- Initial debit card issuance fees
- Debit card maintenance and renewal fees (annual, quarterly or monthly).
- Charge on inward local fund transfers including on RTGS system and Electronic Funds Transfer (EFT).
- Charge on inward international funds transfer where the remitter bears the full cost
- Charges for amendment or cancellation of a standing order
- Ledger fees per entry on a current or savings account
- Commission on turnover activities on the account
- Fees on debit transactions
The Government Gazette further directed that failure to comply with the directives attracted administrative penalties which included suspension of license for a period not exceeding six months.
Habazoka on his Facebook page posted, “enjoy free withdrawals, balance inquiries, free Kwacha accounts among other things.”
