Dear Editor,
Prior to implementing COVID-19 related measures, the Guyana Bank for Trade and Industry (GBTI) charged $35 per transaction connected with the withdrawal of funds from the ATM. The maximum withdrawal per transaction was $30,000 and the daily cumulative amount that could be withdrawn was $100,000.
As part of its COVID-19 relief measures, GBTI increased the maximum daily amount to $150,000, but retained the maximum amount per transaction that can be withdrawn. A salutary gesture was the removal of the transaction fee of $35, which was in effect until July 31, 2020. So far, so good!
On Monday, August 24, 2020 I had cause to visit the ATM. I was astonished to find out that while GBTI had retained the $30,000 and $150,000, respectively, it had increased the transaction fee by a whopping 43 percent to $50. So that what we, the customers, thought was a good show of altruism on the Bank’s part, was really a sleight of hand.
GBTI appears to be in a hurry to recoup lost revenue during the 3-month period of “no fees”. The Bank consistently declares multi-billion dollar profits. I am sure the lost revenue is a very small percentage of profit and can be absorbed comfortably, without the need for this grotesque increase in transaction fee, especially at a time when many of its customers are financially-challenged, due to loss or reduced income.
Editor, can you imagine a low income person having to pay $50 on withdrawing $500? In this COVID-19 period? We must remember, too, that the increase was sprung upon the public like a thief in the night, with no notification. This seems to be a pattern in the banking institutions, where it now seems normal to incur a cost for depositing money (including your salary), for withdrawing money, for investing in your future (dormant accounts containing your hard-earned savings could be subject to periodic “no transaction” penalties), for requesting a statement of your account, among several other reasons for instituting fees and penalties.
Editor, I call upon the Bank to revert to the $35 and to increase the maximum per transaction to $40,000 while retaining the maximum daily withdrawal of $150,000. I call upon the Government to develop Consumer Rights legislation that would empower consumers. Without that, consumers will continue to be at the mercy of commercial banks and other financial and quasi-financial institutions. Meanwhile, the Governor, Bank of Guyana is asked to increase his oversight of these institutions and, in the absence of updated legislation, to use his powers to issue “Banking Circulars” to ensure that the actions of the banks do not lead to unintended consequences such as disintermediation.
Yours faithfully
Winston Jordan
Former Minister of Finance
