CUSTOMER protection guidelines of the State Bank of Pakistan (SBP) for all commercial banks are generally found to be commendable. However, item 2.5.1 of Business Conduct & Fair Treatment Framework, recently released under BPRD Circular No. 04 of 2025, has shocked small depositors across the country. Now, under the cited regulatory framework, depositors with average monthly balance of less than Rs50,000 will be charged a certain fee by the banks for providing the 12-month bank statement ending June 30 that is required by most individuals for finalising their income tax returns.

This development is nothing but SBP’s approval of banks’ plan to jack up their income by levying a charge on their small depositors. This guideline is an act of unfair treatment. Small depositors will have to pay charges for obtaining their account statements, while big depositors will continue to have the same free of charge.

Does the SBP officialdom assume that small depositors are not required to file tax returns when the income above Rs600,000 per annum (or Rs50,000 per month) is taxable? Individuals earning Rs50,000, or, for that matter, even Rs200,000 per month cannot afford to maintain a balance of Rs50,000 in their bank accounts. However, they have to submit their tax returns. Similarly, senior citizens having their lifetime savings invested in different government schemes draw every penny of their monthly profit to keep their lives moving. They, too, cannot maintain the required balance, but still have to submit tax returns.

The SBP should review the framework, and advise all commercial banks to provide Tax Year (July-June) statements free of charge to their account holders irrespective of their monthly average bank balance.

M. Shams Izhar
Karachi

Published in Dawn, November 15th, 2025