Zambia Consumer Association (ZACA) has supported plans by the Bank of Zambia (BOZ) to start regulating exorbitant over the counter withdraw charges that commercial banks are demanding from customers.
Association Executive Director Juba Sakala says the decision is progressive and will go a long way in improving and promoting financial inclusion among the citizens in the country.
Speaking in an interview with ZANIS in Lusaka today, Mr. Sakala disclosed that many people have started shunning services offered by the bank due to unreasonable charges that are attached to most transactions.
He explained that the situation has also contributed to the high rate of unbanked population which is not good for the country’s economy.
Mr. Sakala stated that currently, the country’s informal sector is bigger than the formal sector yet there is more money in circulation among the informal sector.
He noted that this is why it is important for people in the informal sector, to start saving with banks, adding that their savings can help in growing the country’s economy because banks lend out the money to individuals, firms, as well as government for projects.
He added that if citizens are encouraged to save they will also access loans from the financial institutions, to grow their businesses and ultimately contribute to the country’s poverty reduction.
And Mr. Sakala pointed out that in as much as citizens especially those from the informal sector, are willing to keep their money in banks, they are discouraged with the charges.
He stated that this is why it is important for commercial banks to respond to the complaints made by consumers and ensure that their services are improved on and are not exploitative.
When contacted for a comment Bankers Association of Zambia Chief Executive Officer Leonard Mwanza said the association is currently engaged in discussions with the Central Bank on the matter.
Recently Minster of Finance Margret Mwanakatwe told Parliament that BOZ was in the process to start regulating exorbitant withdrawal charges by commercial banks following complaints of exploitation from members of the public
Beautiful! Long overdue! Hazaluza Hagain.
Especially Barclay, awe you leave K5000 just for month, yangu tata ee, kuyako it K2800.Where is my money? Iyoo charges for withdrawing from ATM, Account maintenance, Iyoo kabili Harry was marrying we needed to contribute the Royal wedding account for amatebeto. awe mwandi. Yes regulate them but don’t push them out of business.
Good move. Please also take a look at the practice by banks arbitrary varying interest rates on existing loans. They are usining lure and kill tactics
Boz shud also look at exorbitant varying interest rates that banks are adding on existing loans.Zanaco shud be talked to for its joined the bandwagon of imperialists in looting from poor Zambians
The fascination of cash should be terminated. Banks pay you when you don’t use cash to transact. Allow banks to discourage cash use so that we all migrate to using phones as wallets instead of oily boxes, stinking sacks and all manner of contraptions as money bags.
The craving to use cash just shows the penchant for corruption, tax dodging, vote buying and money laundering. All spending should have a trail to tame these vices & make it feasible to investigate crimes and vices and the threatening terrorism by anti-Christians. The sooner the cellphone replaces cash, the better.
What rubbish is this …Go and research about the Rothschild family and the Central banks they dont own ie North Korea..you don’t even know that cash is its worthless paper when you think about ..in the UK I never handle cash as everything is done via card and phone it still dont make any difference..unless you start talking Cryptocurrency and dark nets that will get the banks attention.
Why beat all the bush…just challenge the banks to offer a basic current account with a card and zero overdraft and zero charges simple as that!!
*…beat about the bush>>
AB Bank is charging 69 percent intereste rate honestly
Let them do it, these chaps are just waking up and charging people maintenance fees and withdraw fees which they even change at will and offer no interest on the money they keep. So pathetic
Thank you
BANK OF ZAMBIA PLEASE SEARCH ZANACO LOANS WHICH WERE GIVEN TO ZAMBIA AIRPORTS CORPORATION EMPLOYEES ARE CRYING ABNORMAL INTEREST RATES THOSE WHO GOT LOANS FOR 5 YRS THEY HAVE EXTENDED THEM TO 2 TO 3 YRS PLEASE INVESTIGATE DONT KEEP QUIET .FIND OUT FROM THE DIRECTOR HUMAN RESOURCE OR THE FINANCE DIRECTOR THING ARE MESSED UP
BANKS IN ZAMBIA ARE MORE LESS LIKE LIONS,KILLING POOR POEPLE LIKE NO MANS BUSSINESS.LOANS ARE BEEN EXTENDED.PLEASE INVERSTIGATE BANK ABC AND ZANACO.