08 January 2005	Saturday	26 Ziqa'ad 1425

KARACHI, Jan 7: The State Bank has told all banks that a new category of people would also now enjoy exemption from levy of service charges on their deposits.

In this category would fall widows and children of deceased employees of government and semi-government institutions eligible for family pension, benevolent fund, grant etc., SBP said on Thursday in a letter issued to all banks.

Three other categories of account holders already exempted from levy of service charges would continue to enjoy the exemption. These are (i) students (ii) Mustahiqueen-e-Zakat (those who can receive Zakat) and (iii) employees of government and semi-government institutions maintaining bank accounts for getting salary and pensions.

Banks levy a service charge on accounts having a balance lower than the minimum prescribed by them. They argue that keeping bank accounts having too little balance earns them nothing and rather carries a cost. Service charges vary from bank to bank as does the minimum prescribed balance.

The practice of levying service charge had attracted severe criticism from the general public. So the central bank exempted the aforesaid categories of account holders from paying such charges.