January 25, 2006	Wednesday	Zilhaj 24, 1426

KARACHI, Jan 24: The State Bank on Tuesday expressed concern over banks’ violation regarding service charges on collection and distribution of Zakat funds.

The SBP issued a circular saying that it has been noticed that banks are recovering service charges on account of services connected with the collection and distribution of Zakat. The SBP said it was not permissible in terms of Zakat and Ushur Ordinance, 1980.

“Banks are advised to ensure that there is no violation of the provisions of Zakat and Ushur Ordinance or any other law and ensure a compliance with the instructions,” said the circular.