BoZ to investigate illegal charges

THE BANK of Zambia (BoZ) says it will soon investigate First National Bank (FNB) for allegedly charging of customers on saving accounts.
BoZ head of public relations Kanguya Mayondi said the central bank will charge FNB if investigations reveal that it is not operating within the guidelines of the banking and financial services Act.
Mr Mayondi told journalists on the side-lines of the financial education media workshop on Monday, that BoZ will ensure that it conducts an inquiry into the claims made by customers as commercial banks are not supposed to charge on savings.
“I will be contacting director of bank supervision so that BoZ can start looking into [the charging of clients on their savings accounts] and ascertain whether other commercial banks are also practicing such activities.
“If there is no proper explanation, regulatory measures will be taken against this bank. We have continued to [sensitise] the public on bank charges and other banking services,” he said.
Mr Mayondi said the named commercial bank will be required to explain why it is charging customers on savings accounts.
“If FNB acted within the domain of the regulatory policy, then they must have a good reason for implementing such a rule.-Should the case be opposite, then the commercial bank has to explain the circumstances under which it is applying the charges on customers’ who hold saving accounts with the bank,” he said.
Mr Mayondi however, said there is need to properly handle the issue as it has the potential to negatively impact on the banking sector and economic growth of the country.

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