Prudential Regulations for Banks

All commercial banks shall be free to determine the rates of charges in respect of various services that they may provide to their constituents. However banks are directed to follow ranges for rates of charges relating to exports w.e.f. 12-2-1996 vide BPRD Circular No. 6 dated 11-2-1996:-

EXPORT	MINIMUM	MAXIMUM
1. Processing charges for Export Registration.	Rs. 150/-	Rs. 300/-
2. Letters of Credit
(a) Advising	Rs. 250/-	Rs. 350/-
(b) Amendment Advising	Rs. 200/-	Rs. 250/-
(c) Negotiation of Rupee Bills under Export L/Cs	Rs. 200/-	0.25%
(d) Confirmation.	Rs. 250/-	0.25% per quarter or part thereof.
(e) Transfer of Export L/Cs	Rs. 250/-	Rs. 350/-
(f) Reimbursement payment to other local banks from Non Resident Rupee Account.	Rs. 250/-	Rs. 350-
3. If the documents are sent to other banks for negotiation under restricted L/Cs.	Rs. 250/-	Rs. 350/-
4. Collections
(i) Clean	Rs. 75/-	Rs. 100/-
(ii) Documentary (on which banks do not earn any exchange difference)	Rs. 150/-	Rs. 200/-
5. Handling of Duty Draw Back Claims	Rs. 250/- per claim	@ 0.25% per claim
6. Service Charges against export documents sent on collection basis where payment cover is already received in bank’s Foreign Currency Accounts.	Paisa 10 per Rs. 100/- or R. 1/- per mille	Paisa 13 per Rs. 100/- or Rs. 1.30 per mille.

2. It shall be mandatory for each commercial bank to fix its rates of charges on half-yearly basis in advance for the half year January-June and July-December. Each bank shall get its schedule of charges printed and so notified as to be available to its constituents at least 7 days before the commencement of the half year during which the rates shall remain in force at all places of business. The bank shall be required to provide a copy of the printed schedule of charges to the Banking Policy and Regulations Department of State Bank of Pakistan before the commencement of the related half year.

3. Banks are advised to obtain clearance from the State Bank of Pakistan before fixing any charges (relating to exports) other than those mentioned in this regulation.