The Central Bank has said it will not hesitate to deal with banks and Specialised Deposit-Taking Institutions (SDIs) in the country that fail to comply with its new directives.
According to the Bank of Ghana (BoG), it will apply severe sanctions to banks and SDIs that continue to demand for charges and undertake certain practices it deems as unfair, inappropriate and detrimental to the financial inclusion agenda of government.
The BoG, in a notice issued Friday, June 18 directed all banks and SDIs in the country to desist from the collection of some fees and charges it describes as ‘unfair’ on the provision of its products and services.
The Central Bank in the notice averred the new directive which is in line with Section 3 of the Banks and Specialised Deposit-Taking Institutions (SDIs) Act, 2016 (Act 930), is to ensure that the interest of customers of banks and SDIs are adequately protected.
The “unfair fees and charges” as noted by the Central Bank in its notice include;
- Credit Insurance Premium Overcharge
- Maintenance Fees on Savings Account
- Over the Counter (OTC) Withdrawal Charges
- Change of Ownership of Collateral Documents
- Application of Interest on Penal Charges
- Quotation of Monthly Interest Rates on Credit Facilities
- Third Party Deposit/Withdrawal Violations
Meanwhile, the BoG has said it expects abolishment of the aforementioned charges and practices to empower customers to ensure that they are not short-changed when engaging with banks and SDIs in the country going forward.
Read details of BoG’s notice: