An Economist has said that the pronouncement by the Central Bank to prohibit unwarranted bank charges and fees will motivate more citizens to open bank accounts, adding that the move can also lead to lower lending rates.
Mr. Mweemba explained that when a lot of people bank their money, it can trigger the lowering of lending rates because banks will have enough liquidity to loan out.
He said the Bank of Zambia’s pronouncement also provides an opportunity for financial institutions to collect more from people.
On Tuesday, the Bank of Zambia (BoZ) issued a directive on the prohibition of unwarranted charges and fees to all financial service providers, which came into effect on Tuesday the 4th of September 2018, through Government Gazette Number 6693, is pursuant to section 167 of the Banking and Financial Service Act No. 7 of 2017.
BoZ Deputy Governor for operations Bwalya Ng’andu said that the Central Bank had determined that the imposition of 26 unwarranted charges and fees on members of the public is an affront of the rights of consumers of financial services.
Dr. Ng’andu says imposition of 26 unwarranted charges and fees also undermines efforts towards financial inclusion in Zambia.
Below is the list of the 26 items classified as unwarranted