The State Bank of Pakistan (SBP) on Monday announced that it has extended the temporary suspension of service charges of 0.12% to allow banks to manage their liquidity.

“In order to facilitate the banks in managing their excess liquidity, consequent to large volumes of withdrawals on the eve of Eid and the COVID-19 pandemic, it has been decided to extend the temporary suspension of 0.12% service charges on deposit of re-issuable balances with SBP BSC offices or NBP chests branches,” read a circular from the SBP's Currency Management Strategy (CMS).

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The SBP said that banks can deposit re-issuable balances with SBP BSC offices or NBP chests without levy of 0.12% service charges on deposit of re-issuable balances till December 31, 2021.

Under the FD Circular No. 03/2015, 0.12% service charges have been levied on the banks against deposit of re-issuable balances with SBP BSC offices or NBP chest branches

The central bank added that all other instructions on the subject shall remain the same.