Banks can levy service charges on PLS deposits

KARACHI (July 05 2003) : The State Bank on Friday said that banks can levy service charges on all types of PLS deposits, but exempted students, 'Mustahiqueen' of Zakat, employees of government and semi-government institutions for salary and pension purposes.

The State Bank has reviewed the 'Instructions on Services Charges on PLS Deposit Accounts', by issuing a circular and cancelling the instructions issued in the BPRD Circular No 34 of 1995.

The instructions were reviewed in view of representations received from banks, said the SBP circular.

All terms and conditions of operation of an account will be made known to the opener of the account at the time of opening of the account.

The terms and conditions will be clearly, explicitly and elaborately documented in the account opening form or application and must be signed by the prospective depositor/account holder to signify having been read and understood, said the circular.

All account opening forms must be filled in by the account holder in duplicate, one copy of which must be returned to the depositor/account holder duly verified by the authorised official(s) of the branch under proper acknowledgement.

“The banks can levy service charges on all types of PLS deposits provided these charges are indicated in their half-yearly schedule of charges,” said the circular.

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