Circulars/Notifications - Banking Policy Department  
 BPD Circular No. 23
July 04, 2003  

The Chief Executives/Presidents,

All Scheduled Banks

 

Dear Sirs / Madam,

Prudential Regulation # XIII - Review of the Instructions
on Service Charges on PLS Deposit Account

 


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: -

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.

Yours truly,
(Muhammad Kamran Shehzad)
Director

BPD Circulars/ Circular Letters issued in 2002
       
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