BoG must sanction banks that flout new directives on fees and charges – Banking Consultant

A Banking consultant, Dr. Akwasi Atuahene, has called on the Bank of Ghana to take action against financial institutions that fail to implement its new directives to stop deducting some charges and fees on the accounts of customers.

The Central Bank in a statement on Friday, June 18, 2021, directed banks and Specialized Deposit-Taking institutions to desist from implementing seven different fees and charges, and also stop engaging in some practices that do not auger well for the banking sector.

The fees and charges, and practices which are identified by the central bank as unfair include, Credit Insurance Premium Overcharges, Maintenance Fees on Savings Account, among others, Over the Counter (OTC) Withdrawal Charges as well as the requirement by some banks for borrowers to make them part owners in some assets they present for use as collateral for loans.

Speaking to Citi News, Dr. Atuahene urged the various banks to adhere to the directive as customers had been ripped off for a very long time.

“Some customers are ignorant, and they [banks] know we cannot report them to anyone and even if you report, it was going to take a long time. They were debiting customers GHS5 or GHS10, and they make huge profits. Meanwhile, the person has made deposits on their accounts, and you are using the same money to trade. So the banks are not being fair to their customers. I think the Bank of Ghana is only telling them now that they have to be fair to customers. It will be good for customers. The banks were milking people.”

Dr. Atuahene said the directive by the Bank of Ghana “is a step in the right direction and must be enforced to the letter. And if people report any deviant to them, they should take action against any such bank.”