Duplicate branch license: Rs 50,000 fee will be charged, SBP tells banks

The State Bank of Pakistan (SBP), revising branch licensing policy, has fixed Rs 50,000 fee for duplicate license for any bank branch. A formal intimation has also been sent to banks for implementation of the new policy Sources in banking sector told Business recorder on Wednesday that earlier there was only fee for the new license of branch or sub branch and duplicate licenses were being issued by the SBP free of cost against already issued license.
However, after huge number of applications for duplicate license from banks and Microfinance Banks (MFBs) the regulator is forced to impose fee for the duplicate license. "In order to further strengthen and regulate the branch license policy, the State Bank has made this amendment, as the applications for the duplicate licenses were gradually increasing," said a banker. He added that this step will definitely enhance the banks' ability to manage their record especially branch license. He confirmed that earlier there was no fee for the issuance of duplicate license.
The State Bank has issued a circular BPRD No 03 on February 25, 2011 to the Presidents and Chief Executives of all banks and MFBs. Para 46 of Branch Licensing Policy (BLP) issued vide BPRD Circular No 15 dated October 12, 2007, whereby all banks are required to submit processing fee of Rs 100,000 & Rs 50,000 for every new branch & sub branch license, respectively.
"In view of the growing number of requests from various banks/MFBs for issuance of duplicate licenses, it has been decided that henceforth a fee of Rs 50,000 would be charged for issuance of those duplicate licenses against which the original ones were lost/destroyed due to concerned banks/MFBs negligence," the circular said. According to SBP, all other instructions on the subject shall remain unchanged and banks can get new license as per previous rules and regulations. In addition to this, fee for every new branch & sub branch license will also be the same.