KARACHI

The State Bank of Pakistan has decided to rationalise processing fee for refund requests against the penalties imposed on account of violations recorded in the inspection reports.

The revised processing fee has been set as a lump sum amount of Rs. 500,000/- for banks /DFIs whereas flat fee of Rs 100,000/- for Microfinance Banks (MFBs). In this regard, the State Bank has issued Circular No. 04 of 2015 (for bank/ DFIs) and Circular No. 05 of 2015 (for Microfinance Banks) dated June 01, 2015.

It may be recalled here that previously the Banks/ DFIs were required to pay a fee equivalent to 5pc of the amount contested or a minimum of Rs 500,000/- whichever was higher as processing fee for the appeal so made and the Microfinance banks were required to pay a fee equivalent to 5pc of the amount contested or a minimum of Rs. 100,000/- whichever was higher as processing fee for the appeal so made. Moreover, in order to streamline the procedure for finalisation of inspection reports and process of appeals against penalties imposed on account of violations recorded in the inspection reports, State Bank of Pakistan issued regulatory instructions through different Circulars.

 These Circulars, inter-alia, laid down following specific requirements: Timely submission of information/ evidence/ record in connection with any irregularity/ observation noted in the draft inspection report, Time limitation for refund request against penalties levied on banks/DFIs and MFBs, and Revised (upward) processing fee for refund requests.