Regulatory Alerts2010-01-01
Directive on Cheques and Direct Debit Instructions Issued on Insufficiently Funded Accounts, 2010
The Bank of Zambia issued the 2010 National Payment Systems Directives to standardize the handling and penalties for cheques and direct debit instructions drawn on insufficiently funded accounts. Paying banks must levy fixed penalty fees on dishonoured instruments, report defaults to credit bureaus within seven days, and automatically suspend cheque or direct debit facilities after three dishonours within twelve months. Collecting banks are barred from charging fees on deposited dishonoured items, and all licensed institutions must submit detailed monthly compliance returns to the central bank.
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