Please refer to BPRD Circular Letter No.20 dated August
1, 2007 on the above subject. The Banks were advised not
to charge more than Rs.50/- per month as service charges
from their regular account holders on maintaining balance
below the minimum monthly average balance.
It has been brought to our notice that some banks are
recovering Federal Excise Duty (FED) in addition to maximum
Rs.50 from the account holders under this head. This practice
of these banks is against the spirit of the aforesaid
In order to clarify the position, the banks are advised
not to recover service charges exceeding Rs. 50 inclusive
of taxes under this account. The aggregate amount to be
recovered under this account will not exceed Rs.50 in
Non Compliance and circumvention of instructions shall
be dealt in accordance with the relevant provisions of
Banking Companies Ordinance 1962. These instructions are,
however, applicable with immediate effect.
All other instructions on the subject shall remain unchanged.