The Chief Executives,
All Banks.

Dear Sirs /Madam,

RENEWAL FEE FOR BANKING/ BRANCH(ES) LICENCES ISSUED UNDER SECTIONS 27 & 28 OF BANKING COMPANIES ORDINANCE, 1962

SBP issues commercial banking and branch(es) licences under sections 27 and 28 of Banking Companies Ordinance, 1962 (BCO) respectively. The issuance of licences, maintenance of record/database and subsequent processing of cases of shifting and verification of facts thereof requires considerable resources, which has an impact on the expense base of State Bank of Pakistan (SBP). It has, therefore, been decided that, in line with international practice, the following fees will be charged for commercial banking and branch licences:-

 

Sr. No	Item	Fee Structure
(i)	Renewal fee for banking licence issued under section 27 of BCO, 1962	Rs 100, 000/- per annum
(ii)	Renewal fee for branch (es) licences issued under section 28 of BCO for branches operating in big cities (Karachi, Lahore, Hyderabad, Islamabad/Rawalpindi, Peshawar, Quetta, Faisalabad, Multan, Sialkot and Gujranwala).	Rs 25,000/- per branch per annum
(iii)	Renewal fee for branch(es) licences for branches operating at cities/places other than big cities mentioned at (ii) above.	Nil
(iv)	Fee for shifting of branches to and within big cities.	Rs 5,000/- per shifting

 

2. The renewal fee for banking and branch licences as indicated above will be payable by 7th January each year. The first such fee will be paid by 7th January, 2005.

3. The fee for shifting of branches will be payable at the time of submission of the request for the purpose and will be applicable with immediate effect. The fee can be paid either through the bank’s authority letter for debiting their current account maintained with SBP Banking Services Corporation (Bank) duly signed by the bank’s authorized signatory or through cheque in the name of SBP. The fee so paid will be non-refundable.

4. It has further been decided that, henceforth, every bank should open at least 20% of the branches planned to be opened, under its annual branch expansion plan, in unbanked areas. The banks are advised to keep this in view while submitting their annual branch expansion plan for the year 2005 and onwards.

5. The above instructions will not be applicable to Microfinance Banks, Islamic Banks, Islamic Banking subsidiaries of existing commercial banks and stand alone Islamic Banking branches of the commercial banks.

6. The above instructions shall form a part of the existing branch licensing policy notified vide BPD Circular No. 19 dated 16th June, 2004.

Please acknowledge receipt.