Bank of Zambia
Bank of Zambia

The Green Party has expressed dismay at the unregulated financial transaction charges in Zambia, a situation which the party says has led to unabated exploitation of the masses, especially the rural populations.

Speaking in Kitwe this morning, Green Party President Peter Sinkamba expressed dismay at the lack control of transaction charges by the Bank of Zambia to benchmark which has led to banks, financial institutions and financial businesses to charge customers whatever amounts, without any form of recourse to the vulnerable public.

Mr. Sinkamba explained that banks charge anything from K5 to K500 for clients to access their money through the ATMs and over-the-counter transactions, while mobile money providers charge anything from K2 to K100 to send or receive money.

He noted that while the Banking and Financial Services Act No. 7 of 2017 empowers Bank of Zambia to benchmark interest rates and ban compound interest, it appears that the Act does not do so on the regulation on the transaction charges.

“We have noted with dismay that Bank of Zambia regulates and benchmarks interest rates that banks, financial businesses ,and financial institutions charge, however, it lacks power to do so for transaction charges. This lacuna has created a situation where vulnerable customers are exploited by these institutions without any form of recourse to the public,”Mr. Sinkamba said.

He said that while ATM charges range from K5 to K10 per transaction, over-the-counter charges range from K50 to K500 for premium clients.

“The trouble with clients who use banks is that most of the time, the queues at ATMs are too long or ATMs are dysfunctional forcing clients to use over-the-counter transations and thereby are charged exhorbitantly,”Mr. Sinkamba said.

“As for mobile transations, ZOONA for example, charges anything from K2 to K100 depending on the transaction amount. In my view, the transaction charges should not dependent on the amount being sent or amount being received, but on the number of transactions that are conducted, just like is the case with ATM charges. There must be a maximum limit per transaction just is the case with ATMs and Shoprite Money. Basing charges on transaction amount is exploitive behaviour. We therefore urge Bank of Zambia to move in and curtail this exploitive behaviour,”Mr. Sinkamba said.

He said the most affected population is the rural populace where there are very few or no ATMs and Shoprite Money, and therefore rely solely on mobile money provided by ZOONA, Airtel Money and MTN Money. He has challenged Bank of Zambia to issue a policy statement on this issue stating that the Bank has a statutory duty to protect vulnerable customers for exploitation from financial transactions.

“Bank of Zambia is the mandated institution to regulate banking and financial transactions in the country. The Bank should not turn a blind eye to exploitation of the masses. We there challenge the Bank of Zambia Governor Dr Denny Kalyalya to immediately clarify on this policy issue,”Mr. Sinkamba charged.

Issued by Green Party Media

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15 COMMENTS

  1. Spot on President Sinkamba. ZOONA is too much. It is high time BOZ moved in to protect vulnerable clients. In fact, Banks deliberately load K20 notes to increase the number of transactions. This is a day light rip-off. Keep it up Mr. Sinkamba for speaking for the poor. Keep it up.

    We are watching your contributions closely……You are the next president of Zambia.

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    • The banking and financial systems in Zambia have literary collapsed

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  2. “He said that while ATM charges range from K5 to K10 per transaction, over-the-counter charges range from K50 to K500 for premium clients.”

    Zambians are a docile people…..surely how can you be charged for your bank’s ATM…really shocking!!

    …I remember they way how charges varied widely… for using my Natwest Debit or Credit Card in Lusaka whilst on holiday just to withdraw…they are making a killing I feel for tourists..next time I will just take cash although its not safe.

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  3. Kalyalya is snoring as banks steal people’s money and sometimes arbitrarily closes accounts without notice. Try to put K5,000 into a FNB account and leave it unattended for 6 months, uzamuziba Yesu

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    • You are better off hiding it in a safe…in other countries you will still find K4900 or more than K5000

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  4. People have resorted to putting money in the house owing to the fact that banks do no add interest on the customers money which they keep.In fact they gain colossal interest on the money which they lend out to borrowers.A depositor will suffer certain hidden costs like maintenance charge and charges for each withdraw. It is pointless and frivolous to put money in the bank which gains no interest rate.No wonder Indians have no time putting money in the bank because they know that money is just used by these selfish banks.The cost of keeping money in the bank is higher than keeping it in other assets like real estates.Banks are very exploitative and reap where they did not sow.

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  5. Now this is kind of opposition party is what we need in this country. If all opposition parties picked out a cause they would challenge the PF and its policies but all we hear are insults, petitions, walkouts, boycotts etc. Peter is right. I bank with Barclays, Just a few years ago withdrawing money from the ATM was free, and then it went to k5 now its 10k. Using card less service was free now its 8/10k. Buying talk time was free now its 2k. Withdrawing over the counter is 50k assuming it hasn’t been increased. Transferring about USD5000 to foreign bank account is about 500k. To top it up the bank deliberately staffs its ATMs with lower denomination notes so that when you want to withdraw 10,000k, which is the limit by the way, you have to make several withdrawals each costing 10k. You…

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  6. You can’t even go get a loan. Its suicide. 26% interest rate on paper but when you add hidden costs…processing, insurance and God knows what else. I agree with Peter this kind of exploitation is what is stagnating out economy because it’s nearly impossible to borrow to finance any project in this country.

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  7. Yes even though it’s wrong this banks and financial institutions are there to make money and they are not a charitable organisation nor are they a free service provided. So for banks and other financial institutions to be here they will continue charging or else they will just close and move to other countries.

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  8. President Peter Sinkamba? Uuhmm sounds plausible. The guy has great contributions to make compared to the politically still born h.h.

    President h.h? Uummm now that will never happen in Zambia, h.h has seen to that!! Unless Zambia is somewhere in Namwala, perhaps?

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  9. Yes BoZ, do something about it. And the interest rates too! Dr Denny Kalyalya, is it true that you ars sleeping on the job?

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  10. Ichamba…Zoona reduced its transactional fees,they no longer charge k100 check your facts efyo bamikakila

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  11. Why Bank of Zambia cannot solve our problem this year only my charges will be K 2300 and interest can’t reach to this amount for the all year. things are opposite the bank will keep my money for all year with the interest of K300 but getting a loan for one year interest will be more close to K5000. listen to us Bank of Zambia

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