KARACHI, Oct 2: The State Bank of Pakistan (SBP) has withdrawn the “cap” on minimum and maximum rates being charged by the banks for provision of various services to their clients on exports.

According to Banking Policy Department (BPD) circular No 33 of SBP, issued here on Thursday, the banks have been allowed, from January 1, 2004, to determine the rates of charges in respect of various services they provide to their customers.

The decision has been taken in view of the representation received from banks, from time to time, and for providing better and efficient services to the clients.

However, the Central Bank has made it 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.

It further said that each bank will get its schedule of charges printed and so notified as to be available to its constituents at least seven days before the commencement of the half year during which the rates shall remain in force at all places of business.

The banks will be required to provide a copy of the printed schedule of charges to the Banking Policy Department of State Bank before the commencement of the related half-year.

The banks may also place the Schedule of Charges on their websites for information of the general public.

No charge in the notified Schedule of Charges will be allowed during the period in which these are in force.

The SBP hoped that the banks will levy the service charges, which are commensurate with the quality of service they render to the customers.

The service standards should be developed and announced to the public.

This will supersede the instructions contained in Prudential Regulation No. X, as from the effective date of above instructions.—APP