The Chief Executives,
All Banks/DFIs

Dear Sirs/Madam,

WITHDRAWAL OF REDUNDANT/OLD INSTRUCTIONS

While reviewing and revisiting the instructions/directives issued by State Bank from time to time, it has been noted that a number of instructions/directives have become redundant with the passage of time and with the issuance of separate set of Prudential Regulations for Corporate/Commercial banking, SME financing and Consumer financing. It has, therefore, been decided to withdraw/cancel, with immediate effect, all such redundant instructions issued through various Circulars/Circular Letters as per list attached at Annexure “A”. A subject-wise brief on the circular/circular letters instructions withdrawn/cancelled is given as under:-

i) Norms of Efficiency
BCD Circular No.15 of 1986	The instructions were issued in the past primarily for the nationalized commercial banks. However, after the privatization of NCBs and opening of banks by the private sector, the instructions are no more relevant.
BCD Circular No. 6 of 1988
BPRD Circular No. 12 of 1994

 

ii) Bank Charges
BCD Circular No. 30 of 1977	With the liberalization of the financial sector, giving more autonomy to the banks’ BOD and management, creating healthy competition and improving the services standards, the banks have been allowed to levy service charges at their discretion after getting approval from their Board of Directors/Competent authority for meeting SBP’s requirements. In view of privatization of the Banks and financial liberalization, the decisions with regard to donations have been left to the Banks/DFIs as per guidelines given in Regulation No. G-3 of Prudential Regulations for Corporation/Commercial Banking.
BCD Circular No. 7 of 1980
BCD Circular No. 31 of 1980
BCD Circular No. 22 of 1981
BCD Circular No. 5 of 1983
BCD Circular No. 13 of 1983
BCD Circular No. 7 of 1984
BCD Circular No. 1 of 1992
BCD Circular Letter No. 13 of 1992 & PR-X
BPRD Circular No. 34 of 1995
BPRD Circular No.6 of 1996
BPRD Circular No.26 of 1996
BPRD Circular No. 12 of 1997

 

iii) Donations by Banks
BCD Circulars No.7, 22 and 29 of 1969	In view of privatization of the Banks and financial liberalization, the decisions with regard to donations have been left to the Banks/DFIs as per guidelines given in Regulation No. G-3 of Prudential Regulations for Corporation/Commercial Banking.
BPRD Circular No. 28 of 1996
BPRD Circular No. 4 of 2000

 

iv) Depreciation of Fixed Assets & Control on Expenditure:
BCD Circular No. 28 of 1969	In pursuance of the SBP’s policy to give more powers to BOD and the management, the charging of depreciation expenditure under different heads have been left to the discretion of each bank concerned in accordance with their approved policies and adherence to respective Prudential Regulations.
BCD Circular No. 1 of 1970
BCD Circular No. 22 of 1971
BCD Circular No. 9of 1983
BPRD Circular No. 8 of 1996
BPRD Circular Letter No. 10 of 1994

 

v) Rate of Interest/Rate of Profit on PLS Deposits/Service Charges on PLS Deposit Account.
BSD Circular No. 12 of 2001	In the presence of BPD Circular No. 20 of 2003 with regard to determination of rate of return on their own, the BSD Circular No. 12 of 2001 is no more valid.

 

All other instructions/Circulars/Circular Letter/Prudential Regulations shall remain unchanged.

Encl: As above.