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 said 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, Mr. Sakala disclosed that many people have started shunning banking services due to unreasonable charges that are attached to most transactions by banks.
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.
Mr. Sakala added that savings for those in the informal sector can help in growing the country’s economy because Banks lend out money to individuals, firms and government for projects.
He said 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 as much as citizens, especially those from the informal sector, are willing to keep their money in banks, they are scared away by charges.
He stated that this is why it is important for Commercial Banks to respond to the complaints by consumers and ensure that their services are improved and 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 plans were underway by BoZ to start regulating exorbitant withdraw charges by Commercial Banks following complaints of exploitation of over the counter charges levied on withdrawals.
Only God can help anyone who pays for an ATM withdrawal at their own bank! WTF!
Zambians banks should NOT be charging their own customers withdrawal fees. Daylight robbery
Quiet incomprehensible
Thanks
BB2014,2016
Come and bank your money in Sweden, no charges for withdrawing your money from any ATM
What I don’t understand is why a self-proclaimed corporate strategy guru, Mumba Junior would just disappear in thin air when a business related topics like this surface. Was he just a fake?
Any banks in Africa plunder and loot at will. On corruption mastermind realized that and went into banking after looting from the system, the Godfather of CORRUPTION RB.
EXORBITANT started with $1million per junk firetruck, which now can’t put out the corruption outbreak, country is on Fire.
Ulya mwibala… Bakoswe are in ATMs.
Zambians are too docile and regulators are useless …you are charged for withdrawing your own money as if its a fixed savings account and when you leave your own money in the account you are hit with charges.
If I was BOZ I would challenge these thieves to introduce basic accounts with a debit card…you are doing these thieves a favour by putting your money in their banks.
If Zampost was run by smart people they would have introduced basic current accounts with no charges to attract customers from the black market and shame the commercial banks.
Zambia is so backward – why charge clients withdrawing their own money. It makes no sense at all.
Wamona ka
Maybe it’s because of lungu and his boy kaizer
Twachula pafula!!
We even fear banking our own money. Zed banks are mafia
Same as #1.1 Mushota, or is it Mrs Nick?
Nick doesn’t like or love MUSHOTA. Mushota craves for Nick’s d!ck because she’s desperate.
Some dull bloggers just log on to react to other bloggers..I mean you dingbat do you not have an account do you not feel the pinch? Too many simpletons in Zambia.
I doubt this will have any impact because the government is the main beneficiary of these charges. We are paying taxes in more than hundred ways in Zambia today. For example why should we pay for a grave yard space when putting our beloved ones in their final resting place.
There are millions of blogger names out there ..why choose this one? I had to read it twice as there is no way real Senior Citizen would blame the govt.
Standard chartered bank for example charges thus on its savings account:
For use of ATM zmw 8 per withdraw
First three withdraws in a month zmw 0
Any other withdraw from savings account after the third withdraw zmw 50(which is pretty steep.
There’s now temptation for lots of citizens for preference to keep their money in their pillowcases (taking a leaf from the practices of Indian shopkeepers of yore) for fear of all sorts of strange charges by commercial banks.