According to him, the instance where banks set up their own complaints unit to deal with issues arising from their customers often does not end well because both parties tended to insist on their rights and in the end, no proper solution is found.

In an interview with the Graphic Business in Accra, Nana Acheampong said “we want to encourage financial inclusion in the country and that is why we need to ensure that customers of banks feel satisfied with the kind of services rendered by their banks”.

By so doing, he said people would be encouraged to use the services of the banks because they could be guaranteed solutions from an independent perspective, a job which could be done by a banking ombudsman.

ICRO

Presently, there is a body within the Bank of Ghana called the Investigation and Consumer Reporting Office (ICRO) which, among other things, tries to settle disputes between the banks and their customers.

But Nana Acheampong said the body could not be seen to be acting independently because “the central bank itself can be seen as an interested party”.

According to the banking consultant, the central bank as a regulator of the banking industry should not be the body to settle such disputes and noted that the banking ombudsman would be the right arbitrator in such matters.

Challenges

Some of the challenges that the customers encounter in their transactions with their banks  are non-payment or inordinate delay in the payment or collection of cheques, drafts, bills, among others.

Some of them are non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission for this service. Others are the non-acceptance, without sufficient cause, of coins tendered and for charging of commission for this service.

Non-payment or delay in payment of inward remittances; failure to issue or delay in issue, of drafts, pay orders or bankers’ cheques;  and non-adherence to prescribed working hours; and failure to honour guarantee or letter of credit commitments.

Other issues that may engage the attention of the ombudsman are failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents; delays, non-credit of proceeds to parties' accounts, non-payment of deposit or non-observance of the reserve bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank; delays in receipt of export proceeds, handling of export bills, collection of bills etc.; refusal to open deposit accounts without any valid reason for refusal; levying of charges without adequate prior notice to the customer;  non-adherence by the bank or its subsidiaries to the instructions of reserve bank on ATM/debit card operations or credit card operations; non-disbursement or delay in disbursement of pension to the extent the grievance can be attributed to the action on the part of the bank concerned, (but not with regard to its employees); and refusal to accept or delay in accepting payment towards taxes, as required by law.

Call to govt

Against this background, he prevailed on the incoming administration to critically consider the establishment of the banking ombudsman in the country to serve the interest of both the banks and their customers.

He said in the United Kingdom (UK), for instance, the banking Ombudsman has the power to levy fines up to 100,000 Pounds Sterling and noted that in Ghana, once established by an Act of Parliament, the Banking Ombudsman would be given the power to slap fines where necessary.