Banks’ service charges not to be more than Rs 50

KARACHI: The State Bank of Pakistan (SBP) has directed all banks not to charge more than Rs 50 per month as service charges from their regular PLS account holders on maintaining balance below the minimum monthly average balance. It has been brought to the notice of the State Bank 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 instructions conveyed to all banks vide BPRD Circular Letter No 20 dated August 1, 2007 regarding service charges on PLS Deposit Accounts. According to a circular on Thursday, SBP reiterated that 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, it added. The State Bank said the non-compliance and circumvention of these instructions should be dealt in accordance with the relevant provisions of Banking Companies Ordinance 1962. These instructions are applicable with immediate effect – Dailytimes