The Mauritius Commercial Bank (MCB) has reportedly decided not to implement the proposed new fees of 0.2% on cash deposits exceeding Rs 250,000 made by businesses at their branches.
The fees were reportedly set to take effect on August 01.
Businesses expressed relief at the decision, as they feared the additional cost would have to be passed on to their customers, discouraging them from depositing money in the bank.
Critics, including an unnamed former Governor of the Bank of Mauritius, were cited as claiming that banks should focus on providing services rather than solely pursuing profits.
The Bank of Mauritius regulates banking fees and approves such changes, but this move has been met with opposition and concerns about its impact on small businesses.
According to the latest available statistics for the financial year 2021-22, 130 complaints regarding the banking sector were filed with the Ombudsperson for Financial Services office.
Dan Maraye, the current Ombudsperson, highlighted that a significant fraction of the complaints are related to banking fees.
After conducting an annual review of their fee structure, several banks have reportedly revised the charges for certain services. Defi Media reported that some banks justify the tariff increase as a means to encourage the use of digital solutions.
“For instance, standing orders between two accounts of the same client within the same bank, domestic bank-to-bank transfers, and automatic deductions for utility payments are now subject to fees,” it reported.
When asked about the impact of banking fees on banks’ profitability, an unnamed banker responded that the focus should not solely be on profits. He reportedly explained the importance of easing the burden on customers.
“While some fees may appear insignificant, like Rs 6 or Rs 8 for an operation, they amount to a significant volume,” he said.
Source: Defi Media
