The Minister of Finance Saara Kuugongelwa-Amadhila says cash deposit fees will be completely removed without any limitation from all individual saving and investment accounts by March next year in order to make financial services and products affordable.
The minister said this at the inauguration of Nedbank branch in Ongwediva last Friday 8 August 2014. She pointed out that the move was taken to address the reality of barriers hindering the people from accessing formal banking services in Namibia. These are excessive fees charged by banking institutions against consumers when depositing money into their accounts. Already, the minister noted, steps were taken to relieve the consumers from the burden of excessive fees when the Bank of Namibia issued standards for individuals earning N$2 000 per month or less, that no cash deposit fees and no monthly fees or management fees be charged on their accounts. This resulted in about 96 072 active basic bank accounts (BBA) being recorded.
“In the same vein, BoN in addition of the BBA, issued standards in cash deposit fees. In terms of these standards, all banking institutions were to provide free cash deposit for the first N$2 000 deposit per month on all savings and investment accounts held by individuals at banking institutions as from 31 July 2013,” she said.
Similarly, the minister added, all banking institutions were to provide all businesses with annual turnover of N$1million or less with zero-rated cash deposits for the first N$10 000 deposited per month, as from 31 October 2013. All the initiatives have been implemented as agreed. According to the minister, other policies in the pipeline aimed at enhancing access to finance by SMEs include the investigation study to explore the viability of setting up a risk-facility fund for start-ups.
Chairman of the Northern Branch of the Namibia Chamber of Commerce and Industry, Thomas Indji welcomed the move but expressed concern that the banks may find other ways of increasing service fees.
He said some of the NCCI members who were found with huge cash amounts have used alleged exorbitant cash deposit fees as the reason why they are not using banking institutions.
The occasion was also attended by the governor of Oshana Region, Clemens Kashuupulwa, representatives from the Bank of Namibia, commercial banks, business people other financial institutions, church and community leaders.
The minister said this at the inauguration of Nedbank branch in Ongwediva last Friday 8 August 2014. She pointed out that the move was taken to address the reality of barriers hindering the people from accessing formal banking services in Namibia. These are excessive fees charged by banking institutions against consumers when depositing money into their accounts. Already, the minister noted, steps were taken to relieve the consumers from the burden of excessive fees when the Bank of Namibia issued standards for individuals earning N$2 000 per month or less, that no cash deposit fees and no monthly fees or management fees be charged on their accounts. This resulted in about 96 072 active basic bank accounts (BBA) being recorded.
“In the same vein, BoN in addition of the BBA, issued standards in cash deposit fees. In terms of these standards, all banking institutions were to provide free cash deposit for the first N$2 000 deposit per month on all savings and investment accounts held by individuals at banking institutions as from 31 July 2013,” she said.
Similarly, the minister added, all banking institutions were to provide all businesses with annual turnover of N$1million or less with zero-rated cash deposits for the first N$10 000 deposited per month, as from 31 October 2013. All the initiatives have been implemented as agreed. According to the minister, other policies in the pipeline aimed at enhancing access to finance by SMEs include the investigation study to explore the viability of setting up a risk-facility fund for start-ups.
Chairman of the Northern Branch of the Namibia Chamber of Commerce and Industry, Thomas Indji welcomed the move but expressed concern that the banks may find other ways of increasing service fees.
He said some of the NCCI members who were found with huge cash amounts have used alleged exorbitant cash deposit fees as the reason why they are not using banking institutions.
The occasion was also attended by the governor of Oshana Region, Clemens Kashuupulwa, representatives from the Bank of Namibia, commercial banks, business people other financial institutions, church and community leaders.
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