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Monday, 25 February 2019 07:30

RBM issues laws to safeguard financial institutions clients

Written by  Luzily Chiponde
Director of Chief’s Administration in the Ministry of Local Government and Rural Development, Charles Thombozi Director of Chief’s Administration in the Ministry of Local Government and Rural Development, Charles Thombozi

Nkhata Bay, February 25, 2019: The Reserve Bank of Malawi (RBM)’s Consumer Protection and Financial Literacy Chief Examiner, Madalitso Chamba says banks have the obligation to promote clients’ satisfaction through provision of financial knowledge.

He was speaking during sensitisation of Nkhata Bay District Executive Committee (DEC) and local leaders on the newly established laws by the Reserve Bank of Malawi.

Chamba informed participants results of a survey conducted by Malawi Government in 2012 revealed that 29 per cent of the country’s population had financial literacy that led to most people accessing loans from financial institutions with ignorance.

“RBM wants to ensure that customers are knowledgeable of contracts they sign with banks and other lending institutions including loan interest rates and timeframe,’’ Chamba said.

He added it was against that background that a law has been put in place emphasizing on transparency and accountability where lending institutions are obliged to provide information regarding provision of their services.

Chamba then asked the lending institutions to act within the laws in an effort to scale up financial literacy, thereby bailing out vulnerable Malawians from poverty.

“The laws will guide the lending institutions on customer service provision to promote financial inclusion which is key to the country’s economic development,” he said.

Director of Chief’s Administration in the Ministry of Local Government and Rural Development, Charles Thombozi said interventions on financial literacy by the Reserve Bank of Malawi would ensure favorable transactions among the financial institutions and their customers, thereby addressing the gap of financial illiteracy.

Among the laws established by the RBM include fair treatment of customers accessing services.

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