Bank of Zambia Circular 03/2015: Revision of Penalty Fees on Insufficiently Funded Accounts

Bank of Zambia

Office of the Senior Director – Supervisory Policy

3rd February, 2015

CB Circular No: 03/2015

TO: All Chief Executive Officers of Commercial Banks

REVISION OF PENATLY FEES COLLECTED ON CHEQUES AND DIRECT DEBIT INSTRUCTIONS ISSUED ON INSUFFICIENTLY FUNDED ACCOUNTS

We make reference to Statutory Instrument No. 8 of 2014 on Fees and Fines (Fees and Penalty Unit Value) Regulations, 2014.

As you may be aware, Statutory Instrument No. 8 revised the value of a penalty unit from eighteen ngwee to twenty ngwee. In this regard, we wish to advise the banks that the revised value must be applied to the penalties related to The National Payment Systems Directives on Cheques and Direct Debits Instructions Issued on Insufficiently Funded Accounts of 2010.

Accordingly, the penalty fees in the above Directives are as follows:

Type of customer	Penalty fee in penalty units	Old fees based on 18 ngwee	Revised fees based on 20 ngwee
Individual	1,700	K306	K340
Corporate	2,800	K504	K560

All Commercial Banks are therefore required to revise the penalty fees accordingly.

(Signature)

Chisha Mwanakatwe

Cc
Governor
Deputy Governor – Administration
Director – Bank Supervision
Acting Director – Banking Currency and Payment Systems

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Bank Square, Cairo Road PO Box 30080, Lusaka, Zambia Tel: +260 211 228888/9 Fax: 260 211 221751 E-mail: info@boz.zm Website: www.boz.zm