Banks in Lesotho

The four commercial banks are First National Bank Lesotho Ltd, Lesotho Post Bank Ltd, Nedbank Lesotho Ltd and Standard Lesotho Bank Ltd. Three are subsidiaries of South African banks, while Lesotho Post Bank is fully owned by the Government of Lesotho. The country has approximately 50 bank branches, mostly in urban areas, and the three foreign-owned banks hold about 90% of banking assets, turnover and deposits. The Central Bank of Lesotho, commonly called the CBL, supervises banks and the national payment system through on-site and off-site, risk-based supervision. Banking products include transactional or current accounts, savings accounts, call or notice deposits, fixed or time deposits and some youth, student and low-income products. A mobile-money wallet is an electronic-money service rather than a bank account or bank deposit. Product names, minimum balances, interest, transaction limits, dormancy rules and fees depend on the bank or provider. The Maloti, also called the loti, is Lesotho's currency and has the code LSL. The South African rand and the Maloti are legal tender at a one-to-one exchange rate. Customers can use branches, online banking, mobile apps, USSD or cellphone banking, ATMs, point-of-sale terminals and licensed agents. Agent banking can provide deposits, withdrawals, balance checks, statements, account or card application documents, bill payments and mobile-money services. The bank remains responsible for an agent's acts and omissions. An agent should display the bank's name, permitted services, fees, contact details and the nearest branch. Agent transactions are generally processed in real time, and an incomplete transaction should be reversible. Banks use know-your-customer and anti-money-laundering controls, commonly called KYC and AML. A typical application may require an identity document or passport, mobile number, residential address and, depending on the product, proof of income, employment, tax residence or a residence permit for a non-resident or temporary resident. Requirements are product-specific rather than one universal national rule. For example, Nedbank's Bothebelele account is described for residents aged at least 18 with monthly income up to M3,000, while Savvy Plus is described for residents aged at least 18 with monthly income of at least M3,000; both examples require identity, income and address evidence. Retail payments include cheques, credit transfers, direct debits and card payments. The Lesotho Automated Clearing House, or LACH, and the Maseru Interbank Automated Clearing House, or MIACH, support automated clearing processes. Lesotho Wire is the real-time gross settlement system for high-value or time-critical transfers. Electronic funds transfers are governed by EFT rules. Debit, ATM and payment cards can be used at ATMs, shops and online, with contactless and overseas use depending on the card and bank. Foreign exchange and cross-border transfers follow exchange-control rules through authorised dealers and licensed remittance or foreign-exchange providers. Digital services may be available around the clock, but functions and limits differ. One Nedbank example offers online banking, a Money App, USSD at *120*141#, MobiMoney and Send Money. Its stated MobiMoney example limits are a daily deposit of M10,000, monthly balance of M20,000, daily cash-out of M5,000 and daily transfer of M10,000. These figures apply to that product example and must not be transferred to every provider. The CBL's current register lists five mobile-money issuers: Chaperone Ltd, Lesotho Post Bank, Smartel Money Ltd, VCL Financial Services (PTY) Ltd and Sasai Econet Financial Services (PTY) Ltd. A 2024 industry report counted six domestic providers, so the current CBL register is the relevant source for licensing status. Fees are not uniform across Lesotho. Account, card, ATM, transfer, foreign-exchange and network charges depend on the provider and product. A bank may charge only fees that it has disclosed and agreed with the customer; an agent should not impose a separate direct customer fee. For a bank product, the Financial Consumer Protection Act 7 of 2022 requires a Key Fact Statement before the contract. It must provide clear information about costs, returns, fees and bundled or tied products. Customers can request explanations and statements, must receive at least 30 days' notice of changes, and have a five-working-day cooling-off period under the stated consumer-protection rules. Customers should keep KYC information accurate, protect their PIN, password, one-time password and card security code, and review account activity. The available CBL material does not establish a currently active deposit-insurance scheme or a government-insured maximum deposit amount. CBL material identifies deposit-insurance systems as a safety-net issue, and a 2017 report recorded development and review work. A bank deposit should therefore not be described as automatically protected by a state guarantee; customers should confirm the current position directly with the CBL or their bank. Mobile-money trust-account protection is an electronic-money safeguard and does not by itself make a wallet equivalent to a bank deposit. Common risks include phishing, vishing, smishing, SIM swaps, malware, card-not-present fraud, stolen cards, ATM manipulation, shoulder surfing, account takeover and fake-loan or payment scams. Customers should use only official apps, websites and hotlines, never share PINs, passwords, one-time passwords or card security codes, and report unusual activity promptly. A lost or stolen card should be blocked immediately. Suspicious transactions are monitored under AML controls; a banking agent must report suspected activity to the bank within 24 hours. Complaints should first go through the bank's internal process. If the matter remains unresolved, the CBL Financial Consumer Protection Division can investigate or assist. The published CBL contact details are complaints@centralbank.org.ls and telephone 2223 2016.