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 instructions.
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 any case.
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.
