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The Bank of Zambia (BoZ) has issued new directives targeting unwarranted charges and fees associated with electronic money services, citing that such fees undermine progress towards financial inclusion in the country.
The directives, signed by BoZ Deputy Governor – Operations, Francis Chipimo, and issued on September 14, 2024, aimed to isolate and prohibit what the central bank considers unjustified fees.
They also seek to regulate specific charges and fees related to electronic money transactions.
Under the new rules, Electronic Money Institutions that violated these directives face penalties including fines up to K200,000, imprisonment for up to two years, or both.
“The Bank of Zambia has determined that the imposition of unwarranted charges and fees on the public is an affront to the rights of financial services consumers,” the directives state.
“Furthermore, such practices threaten the progress towards financial inclusion in the country.”
The directives outlined several prohibited charges, including fees for deposits into a customer’s wallet, surcharges on merchant payments, bill payments, and charges for failed or unsuccessful transactions.
Other prohibited fees included those for balance inquiries, electronic monthly statements and wallet-related services such as opening, closing, or reactivating a wallet.
The BoZ’s move reflected its commitment to protecting consumers and promoting equitable access to financial services.
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