Free-of-cost Priority Banking Services

Karachi, April 03, 2014 (PPI-OT): In order to harmonize the Shariah practices of Islamic banking institutions (IBIs) regarding provision of free-of-cost priority banking services to their clients, the following instructions are issued which will be applicable with immediate effect:-

i. Priority banking services can be provided to both current and saving account holders; however, offering the same to current account holders only is not permissible.

ii. Promotional material/activities of IBIs shall explicitly mention that such free-of-cost priority banking services are offered at bank’s sole discretion and to both current and saving account holders.

iii. IBIs may prescribe the condition of maintaining a certain level of minimum balance to avail priority banking services.

2. The IBIs are advised to ensure compliance with the instructions in letter and spirit. Failure to comply with the same may invoke penal action under the provisions of Banking Companies Ordinance, 1962.

For more information, contact:
Syed Wasimuddin
Chief Spokesman
State Bank of Pakistan (SBP)
Tel: +9221 3921 2562
Fax: +9221 3921 2563
Email: syed.wasimuddin@sbp.org.pk

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