Please refer to BPD Circular No. 23 dated July 04, 2003 on the captioned subject.

2.         It has been noted from the notices published in the newspapers by some of the banks that they are not indicating the categories of account holders who are exempted from the levy of service charges i.e. (i) Students (ii) Mustahiqueen of Zakat (iii) employees of Government/Semi-Government institutions for salary and pension purposes as stipulated in aforesaid circular. Such type of publicity gives an impression that the charges prescribed by the banks in their notices are applicable to all account holders.

3.         Banks are, therefore directed that while publishing the notices in the print media, they must also mention expressly, the categories of above account holders exempted from the levy of service charges. The banks are further advised to prominently mention the categories of account holders exempted from levy of service charges as well in their half-yearly Schedule of Charges and in all other publicity campaign in this regard.

4.         The banks who have already published the notices in the newspapers without specifying the exempted categories explicitly are advised to issue a corrigendum to this effect immediately.

5.         Non compliance of the instructions shall attract penal action under the provisions of Banking Companies Ordinance, 1962

6.         Please acknowledge receipt.