The instructions set forth nine principles which will apply on service charges effective from 1st July, 2015, said SBP statement here on Tuesday. It is imperative that fairness and transparency in determining charges for various products and services provided by the banks will enhance confidence of customers in the banking industry.
State Bank, in guiding principles, clarifies that the banks must act fairly while recovering the charges from customers whereas all such charges should be disclosed in a manner which is simple and easy to understand. SBP further emphasizes that these service charges should be reasonable, commensurate with the service and customers should not be charged for the services not rendered or rendered without consent.
The Central Bank also encourages awareness campaigns by banks to increase customers' understanding of service charges. All banks are required to follow these principles in letter and spirit while fixing their schedule of charges for consumer related products and services. All banks are required to follow these principles in letter and spirit while fixing their schedule of charges for consumer related products and services.