State Bank of Pakistan has restricted banks that they shall not charge more than Rs 50 per month as service charges on regular account. Banking Policy and Regulation Department of SBP on Wednesday.
Therefore SBP issued a circular letter No 20, in which the SBP has said that it has been observed that some banks are not taking adequate steps for promoting BBA as per SBP instructions and are imposing charges on customers for converting their account from regular full service banking account to BBA.
It has also been observed that banks are also exorbitantly charging their regular account holders for not maintaining minimum monthly average balance with the bank, the SBP added. The SBP said that these practices are not only in violation of the instructions issued vide above referred circulars but are also hindering the access of public to the banking services.
In order to address these issues, it has been decided in consultation with the chief executives of banks, that henceforth banks shall not recover any Basic Banking Account (BBA) operating charges or charges for conversion of regular full service bank accounts to BBA.
In addition, banks shall not charge more than Rs 50 per month as service charges from their regular account holders on maintaining balance below the minimum monthly average balance. The SBP has advised all banks/DFIs to ensure compliance of the above instructions in letter and spirit as non-compliance will attract punitive action under Banking Companies Ordinance, 1962.
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