The State Bank of Pakistan (SBP) has prohibited all banks from recovery of any service charges on cash handling/sorting at the time of acceptance of cash deposits at the counters from depositors. Further, the banks will neither refuse such services nor recover service charges on any other pretext, says BPRD Circular No 12 of October 19, 2011.
However, the SBP has clarified that banks are allowed to recover service charges on deposit/withdrawal of cash on-line as per their schedule of charges. All the banks have been advised to ensure compliance of these instructions, as non-compliance shall be dealt with in accordance with the relevant provisions of law, the circular added.
The circular said that it had come to the notice of the State Bank that some banks were charging fee from customers on account of cash handling/sorting, at the time of receipt of cash deposits. As the acceptance of cash at counters from the depositors is a core banking service, the recovery of charges on such services is considered to be inappropriate for banks, the circular added.
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