By Neo Kolane
The commissioner of financial institutions the Central Bank of Lesotho (CBL) has instructed all commercial banks in Lesotho to cut charging fees in pursuant to Financial Institutions Act 2021 from April 1.
The pricing directives follow an in-depth research work and benchmarking exercise by CBL, which was followed by consultations with the commercial banks; Standard Lesotho Bank, Nedbank Lesotho, FNB Lesotho and Lesotho Post Bank.
The acting governor of CBL, Lehlomela Mohapi, said this week the directives are intended to achieve inclusivity, enhanced intermediation and competitive pricing of banking products and services.
Mohapi addressed the directive on low income savings on an account called Bothebelele account.
He explained Bothebelele account as a transactional account that should be available to members of the public earning a monthly income of M3, 000 and below.
“CBL guides that the level of income can be verified by payslips or other sources of income. In addition, respective banks are directed to put in controls that monitor transactions and therefore effectively assist to determine levels of income of account holders.
“CBL directs that the account shall be governed by a fee structure; there will be no charges or fees for opening the account. There shall be no charges or fees for the first card issuance of this account,” he said at the media conference.
He added: “There shall be no management fees charged for this account, a customer shall not be required to hold a positive minimum balance in the account.”
He added that there shall be no charges for deposits made into this account through Automated Teller Machines (ATM). One withdrawal from the ATM shall be free with no charges or fees for balance enquiries at ATMs, branches, mobile banking and bank statements from internet banking.
Mohapi said there shall be no charges or fees for one point of sale (POS) purchase/swipe and at least three cash-out payments per month.
He further said there shall be no charge or fees for dormant accounts for this account.
Mohapi also explained that it is directed on deposit fees on personal accounts, there be no charges or fees on ATMs.
directive on cash deposits fees and charges on personal accounts that there shall be no charges or fees on ATMS.
On business accounts, Mohapi said there shall be one free cash deposit for all deposits valued at an amount equivalent to M20, 000 per month into accounts of small, micro and medium enterprise businesses with an annual transaction turnover of at most M240, 000. 00.
He said that in the case where deposits are split into smaller values, a limit of three free cash deposits whose sum per month is at most M20, 000. 00 per business should be applied.
He added that any amount more than M20, 000.00 per month shall be processed at standard charges which shall not exceed 0.5 per cent of the deposited amount.
When addressing the fees on internet banking and printed statements, there shall be no charges or fees for the monthly subscription of mobile banking and online banking.
He said initiation fees for vehicle assets financing are set at a one percent of the loan amount, and shall not exceed a maximum of M4, 000.
He also said that the initiation fees for property finance are set at one percent of the loan amount, and shall not exceed M5, 000.
Mohapi said the directive on effective date shall exist for a period of 24 months to March 31, 2024 at which it may be revised or upheld.
