Banks in Malawi

The banking framework rests mainly on the Banking Act, Ch. 44:01, the Financial Services Act, Ch. 44:05, the Payment Systems Act 2016, the Payment Systems (E-Money) Regulations 2019 and the Agent Banking Regulations 2018. The Reserve Bank of Malawi, commonly called RBM, is the central bank and oversees banks and payment systems. Its Bank Supervision Department supports supervision, while the Registrar of Financial Institutions deals with licensing, prudential and market-conduct supervision and consumer complaints. The RBM-listed commercial banks are CDH Investment Bank, Ecobank, FDH Bank, First Capital Bank, National Bank of Malawi, NBS Bank, Standard Bank Malawi and Centenary Bank. Check the current RBM register before opening an account or sending money. The RBM does not open personal or business accounts. A current or demand account supports regular transactions and may provide cheque, ATM and electronic-debit access. A savings account normally pays interest, but the product may limit withdrawals or require a minimum average balance. A fixed or time deposit keeps money for an agreed period and usually offers a higher interest rate; early or partial withdrawal can result in lost interest. Fees, minimum balances, withdrawal limits, card access, foreign-exchange eligibility and digital-service availability depend on the bank and product, so the selected bank’s tariff and account terms provide the applicable details. Banks provide branches and service centres, ATMs, point-of-sale terminals, cards, bank transfers, internet banking, mobile banking, cheque clearing and international trade or foreign-exchange services. Agent banking allows regulated agents to provide services such as cash-in and cash-out outside ordinary branches. Confirm the agent’s identity and connection to the bank, request a receipt and check that the transaction appears correctly. The National Switch and RBM payment-system oversight support interoperability between payment channels. Mobile money services such as Airtel Money and TNM Mpamba provide functional payment alternatives, but they are not bank accounts. Licensed payment-service providers, remittance services, SACCOs and microfinance institutions also have different functions and protections. Informal village banks and Katapila are not equivalent to regulated commercial banking and do not have the same evidenced deposit-insurance or Registrar complaint protection. Banks verify identity before providing regulated services. The checks depend on the product, channel, risk, geography and customer type. A foreign customer generally provides a passport, a permanent, temporary or business residence permit and a utility bill in the customer’s name. A tenancy agreement or village-headman letter may be accepted when the utility bill is not in the customer’s name. Business documents vary by bank, so the selected bank should confirm its list before an application. The Deposit Insurance Corporation, or DIC, is Malawi’s deposit insurer and resolution body. Membership currently covers all licensed commercial banks, and protection is automatic without an application or depositor fee. Eligible savings, current and fixed deposits in local or foreign currency are aggregated across accounts at the same bank. The maximum cover is K3,000,000 per depositor per bank, including qualifying accounts held by a sole proprietorship, partnership or company. Deposits at different banks are assessed separately. A foreign-currency claim is paid in the Malawi Kwacha equivalent. The DIC’s target for settling a complete and properly filed claim is no more than 45 working days. Government deposits, inter-bank deposits, collateral-linked deposits, deposits of shareholders, directors and senior management, and deposits at foreign branches or subsidiaries are excluded from the stated protection. A balance above K3,000,000 is not covered by the limit, although the depositor may recover an additional amount through liquidation if assets permit. A mobile-money wallet should not be treated as a DIC-insured bank deposit. Customers should receive fair treatment, clear information, comparable disclosures and a genuine choice. They must cooperate with identity and anti-money-laundering checks and protect their account number, PIN, password, one-time password, card and SIM. A provider needs consent to access financial information, and inaccurate or unlawfully processed personal data can be subject to correction or deletion under the relevant consumer guidance. For a problem, complain first to the bank branch or service centre in person, in writing or by phone. If the bank does not resolve it, the complaint can be taken to the Registrar or through the RBM complaint channel. Indicative handling periods range from 0–10 working days for simple cases, 11–20 days for investigations, 21–30 days for extensive cases and 31–60 days for complex cases. The Registrar does not handle matters already before a court, criminal or fraud cases, unlicensed providers, village banks or Katapila, and does not determine compensation for damages. If fraud is suspected, contact the bank immediately to stop a payment or direct debit, then notify the Fiscal Police, Registrar or RBM and, where relevant, the Anti-Corruption Bureau. A legitimate financial institution does not ask for a PIN, password or other sensitive authentication data. Unsolicited contact, guaranteed returns and urgent requests for advance payment are warning signs.