SA Finance Minister calls for lower banking fees

Jun 01, 2010

Fees charged by banks in South Africa (SA) must be lowered as part of a move to improve banking services, the country's Finance Minister has stated.

Speaking today (June 1st) following a meeting with bank executives on Monday, Pravin Gordhan called for costs associated with banking in the country to be brought down, I-Net Bridge reports.

"Fees charged must be lower than they are, whether for low-income or high-income accounts," Mr Gordhan said at a media briefing.

He added financial institutions need to be more transparent with charges applied to withdrawing funds through ATMs, so users know "how much is exactly involved", as well as making the process of switching from one bank to another easier.

However, Mr Gordhan added the Treasury does not support the implementation of banking fee caps, stating its preferred approach is to let prices be driven down through competition between banks.

Last month, the South Africa Reserve Bank revealed plans for a new "macroprudential" policy that it says will help protect the country from another financial crisis.