New standards for cash deposit fees
The Bank of Namibia has recently announced that the banking industry has agreed to issue standards for cash deposit fees in Namibia. The set standards apply to all savings and investment accounts owned by individuals at banking institutions, as well as to businesses that earn N$ 1 million per annum or less. According to the announcement, banking istitutions will provide free cash deposits for the first N$ 2,000.00 deposited per month on all savings and investment accounts held by individuals at banking institutions. This will be effected as from 31 July 2013.Furthermore, all banking institutions will provide all businesses with an annual turnover of N$1 million or less with a zero-rated cash deposit fee for the first N$10,000.00 deposited per month. This will be effected as from 31 October 2013.
According to Mr Ndangi Katoma, Director of Strategic Communications and Financial Secot Development, “The above follows the Payment System Management Amendment Act, 2010, which empowers the Bank of Namibia to determine standards for user fees and charges. The objective is to ensure that fees and charges related to payment services are in the public interest, promote competition, efficiency and cost-effectiveness.”
According to the announcement, Bank of Namibia believes that cash deposit fees discourages individuals to save. The bank will continue to work with the banking sector to ensure that such fees are not charged in future. The bank urged continued cooperation in this regard and requested the members of the public to contact their local bank branches for further details.