Nepal Bankers´ Association (NBA) has said banks should be left free to decide on whether or not to levy additional service charges, including the charge on Any Branch Banking Services (ABBS) and opening and closing of accounts.
Responding to the 14-point provision on the draft proposal of Financial Consumer Protection and Financial Literacy (FCPFL) guidelines by the Nepal Rastra Bank (NRB), the umbrella organization of commercial bankers have said they cannot execute such provision because of their heavy investment on information technology.
The central bank had made public the draft on January 15 to seek suggestions and feedbacks from stakeholders “Banks have made heavy investment on information technology to provide ABBS service to public. Most of the customers use ABBS service for remittance purpose only which increases the cost of the banks to manage the cash needed for the service,” NBA has said in a seven-page suggestion sent to the NRB.
NBA has also said banks should be allowed to charge for bank statements, other than that of the current fiscal year, and bank account certifications.
In its draft proposal, NRB has proposed to bar banks and financial institutions fromm charging any additional fee for opening and closing bank accounts, ABBS, providing bank statement and bank account certification.
The association has also said that it was ready to accept the provision on providing simple banking service, establishing information and grievances hearing desk, maintaining the secrecy of the customers, and protecting data.
Similarly, it has argued that banks should be allowed to charge advancement payment charge on borrowers who want to payback loans in advance. “Since the bank evaluates assets and liabilities while floating long-term loan, the advance payment of loan affects the bank´s asset liabilities management,” NBA said in the letter.
source: republica,24 feb 2014
LINK
Responding to the 14-point provision on the draft proposal of Financial Consumer Protection and Financial Literacy (FCPFL) guidelines by the Nepal Rastra Bank (NRB), the umbrella organization of commercial bankers have said they cannot execute such provision because of their heavy investment on information technology.
The central bank had made public the draft on January 15 to seek suggestions and feedbacks from stakeholders “Banks have made heavy investment on information technology to provide ABBS service to public. Most of the customers use ABBS service for remittance purpose only which increases the cost of the banks to manage the cash needed for the service,” NBA has said in a seven-page suggestion sent to the NRB.
NBA has also said banks should be allowed to charge for bank statements, other than that of the current fiscal year, and bank account certifications.
In its draft proposal, NRB has proposed to bar banks and financial institutions fromm charging any additional fee for opening and closing bank accounts, ABBS, providing bank statement and bank account certification.
The association has also said that it was ready to accept the provision on providing simple banking service, establishing information and grievances hearing desk, maintaining the secrecy of the customers, and protecting data.
Similarly, it has argued that banks should be allowed to charge advancement payment charge on borrowers who want to payback loans in advance. “Since the bank evaluates assets and liabilities while floating long-term loan, the advance payment of loan affects the bank´s asset liabilities management,” NBA said in the letter.
source: republica,24 feb 2014
LINK
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