BOZ scraps bank charges

THE Bank of Zambia (BOZ) has outlawed some unwarranted bank charges and fees which will apply to all financial service providers such as automated teller machine charges and over the counter cash deposit and withdrawal charges. Other charges that have been scrapped are opening of bank account charges for both local and foreign currency and charges for pin reset. The BOZ has also removed charges for reactivating bank accounts, balance inquiries and other account inquiries by a customer on any electronic platform. Charges on monthly account statements have also been removed as customers are entitled to a free statement every month but a charge may apply to any additional statement. Monthly maintenance on basic savings accounts without cheque books have also been prohibited. The central bank in a gazette notice stated that the directives were made to isolate and prohibit the charges and fees which it deemed unwarranted, and a financial service provider that contravened any provisions of the directive committed an offence and was liable upon conviction to a fine not exceeding 200,000 penalty units or to imprisonment for a period not exceeding two years or both. “The Bank of Zambia has determined that the imposition of unwarranted charges and fees on the members of the public is an affront to the rights of consumers of financial services. “The directives are made by the Bank of Zambia pursuant to the powers contained in section 167 of the Banking and Financial Services Act, No 7 of 2017,”the gazette read in part. The BOZ said service providers must publicise the content of the directive to its customers.