The Presidents/Chief Executives
All Banks

Dear Sirs / Madam,

SUO-MOTO CASE NO.4/2006 - PROPER ARRANGEMENTS
IN COMMERCIAL BANKS FOR DEPOSITING UTILITY BILLS

The Supreme Court of Pakistan in a suo-moto action has opined that if all the scheduled banks, Post Offices, National Saving Centre and Petrol Pumps are allowed to collect utility bills, the burden on particular bank for the deposit of utility bills would be reduced. The Court has further directed that, in the meanwhile, all the banks authorized to collect the utility bills are directed to provide facility of drinking water and sheds immediately in accordance with the Municipal Laws, to the consumers who have to stand in queue during the hot season.

2. In view of the above, all branches of the scheduled commercial banks are directed to collect utility bills from the consumers in terms of BPRD Circular No. 38 dated the November 10, 1997 and subsequent instructions on the subject. Banks may also appropriately inform the general public through press/media in this regard. For collection of utility bills, the banks may complete all necessary formalities with the Utility Companies and submit a compliance report to State Bank latest by 31st July, 2006.

3. All the banks that are already collecting utility bills are again directed to make special arrangements to ensure provision of drinking water and sheds in accordance with the Municipal Laws to the consumers, as has already been advised earlier vide our BPRD Circular No. 38/1997. A compliance report in this regard may be submitted by 30th June, 2006.

4. State Bank will carry out surprise checks of the bank branches ensuring adherence to the above instructions. Any violation of SBP instructions in this regard will attract the penal provision under the Banking Companies Ordinance, 1962.

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