20000401

Banks levying service

charges on PLS accounts

violating SBP regs

LAILA A ALI

QUETTA: Almost all banks, including foreign and Pakistani, have started levying service charges on depositors on their PLS and saving bank accounts, discouraging savings in flagrant violators of State Bank of Pakistan Prudential Regulation XIII.

A spokesman at PLs and Savings Bank Accounts Association told a group of commerce correspondents here on Friday that this practice of levying service charges on PLS and savings bank accounts is very well known to the SBP as is evident from the fact that it (SBP) had neither objected nor asked foreign and Pakistani banks for removing service charges from the half-yearly schedule of banks charges announced by these banks after SBP approval.

He added, that it appears that SBP has deliberately because blind to this flagrant violation of its own Prudential Regulation XIII.

According to the regulation, no bank foreign or Pakistani, shall levy any charge, in any form, on the credit balances held it on PLS basis in customers deposit accounts. But almost all the banks, foreign and Pakistani, operating in the country have imposed this levy ranging from Rs. 1,000 to Rs. 5,000, on PLS savings bank accounts if the balance in their accounts fall below certain amount. It is Rs. 150 per half year (flat) charges on PLS saving account where balance is below Rs. 1,000. Similar charges are on current account where balance is below Rs. 1,000.

The spokesman said this fresh levy is in addition to miscellaneous charges imposed on depositors by the banks operating in Pakistan. These are Rs. 50 per sheet for duplicate statements if older than one year, Rs. 25 per cheque for local currency account for issuance of loose cheque, $1 for foreign currency account for issuance of loose cheque. There are also usual charges and Excise Duty on issuance of new cheque book in lieu of lost cheque book from the depositors by the banks.

The spokesman said that on top of all, these banks have now decreed that the account holders would be penalised by giving so profit if their balance falls below the prescribed account.

The spokesman said that small savings come from petty savers such as salaried class. Small traders, vendors, small shopkeepers, petty contractors, small businessmen, and petty professional such as carpenters, tailors, teachers, daily wagers and men and women of meagre means.

The spokesman said such levy has led to the constant withdrawal of deposits from most the banks, avoiding uncalled for charges, and diverting their small and savings to a chain of lucky lottery self-up run by money lenders.

The spokesman said the Association would soon approach the present government to encourage savings in the country by preventing the banks from following blinding the dictates of the imported tankers. He charged that these so-called 'financial experts' either imported from foreign banks or from foreign countries, are following the policy of the west where emphasis is more on spending rather than saving, without realising the hard fact that it is not possible for middle, lower middle and poor depositors to maintain such high and heavy balances in their PLS bank accounts as to save from hard hit service charges on their paltry and petty deposits.