Please
refer to Prudential Regulation No. XIII (issued vide BSD Circular
No. 12 dated 17th March, 2001 & BSD Circular
Letter No. 24 dated 4th October, 2001) on the above
subject.
2.
In view of the representation received from the banks,
the instructions contained in
PR-XIII have been reviewed and substituted as under:
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PR-XIII
a)
All terms and conditions of operation of an account
shall be made known to the opener of the account at the time
of opening of the account. The terms and conditions shall
be clearly, explicitly & elaborately documented in the
account opening form/application and must be signed by the
prospective depositor/account holder to signify having been
read and understood.
b)
All account opening forms must be filled in by the
account holder in duplicate, one copy of which must be returned
to the depositor/account holder duly verified by the authorized
official(s) of the branch under proper acknowledgement.
c)
The banks can levy service charges on all types of
PLS deposits provided these charges are indicated in their
half yearly schedule of charges.
d)
In case of accounts where no express clause was provided
in account opening form for levy of service charges, i.e accounts
opened prior to 17th March, 2001, the banks may
recover service charges provided each of the following conditions
are met meticulously.
i.
A reasonable time i.e at least six months is
allowed in advance to account holders intimating the intention
of the bank to levy service charges.
ii.
Account holders have been informed about the levy of
these charges through a letter while dispatching the half
yearly statement of accounts.
iii.
The banks display the effective date for levy of service
charges in each of their branches for information of their
customers in the light of instructions given in para (a) above.
iv.
Account holders have been advised through newspapers
and other means of communication.
3. Banks are further directed
that accounts maintained by (i) Students (ii) Mustahiqueen
of Zakat (iii)
employees of Government/Semi-Government institutions for salary
and pension purposes shall be exempted from levy of service
charges in any manner whatsoever.
4.
The instructions issued vide BPRD Circular No.34 of
1995 and Circular & Circular letter as mentioned above
shall stand cancelled.
5.
In case it is found, on the basis of complaints received
or during the course of on-site inspection by SBP, that the
banks, without completely complying with the above instructions,
are levying/recovering service charges, punitive action will
be taken under the relevant provisions of Banking Companies
Ordinance.
6.
Please acknowledge receipt.
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