Government has with immediate effect scrapped off unwarranted charges and fees by banks as this will now be illegal.

The Bank of Zambia has since directed all banks in the country to stop such charges.

The Directive is in the Government Gazette number 6693 made available to the media.

In a circular signed by BoZ Deputy Governor in Charge of Operations Dr. Bwalya Ng’andu, it reads in part “pursuant to directive Number 9, the Bank of Zambia hereby designates September 4th, 2018 as the effective date on which the said directive will come into effect.

Dr. Ng’andu says the Bank of Zambia is determined that the imposition of unwarranted charges and fees on the members of the public is an affront to the rights of the consumers of financial services.

“The bank is also determined that the imposition of unwarranted charges and fees threatens strides towards financial inclusion in the country,” Dr. Ng’andu said in a circular.

The Central Bank has emphasized that these directives will apply to commercial banks, BoZ and any other person conducting or offering to conduct the services of processing of Direct Debit and Credit Clearing (DDACC) instructions or funds transfers on the Zambia Interbank Payment Settlement System (ZIPSS).