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Article (10) Personal Banking Services & the Fees and Commissions Charged on them

C 29/2011 Effective from 29/3/2011

a) Personal Banking Services: are bank transfers, issuance of bank cheques (or manager's cheques) issuance of bank guarantees, opening of documentary credit, discount of cheques of local and foreign banks, issuance of balance certificates, issuance of indebtedness certificates and the like.

b) All banks and finance companies (finance companies are not permitted to open current, savings or call accounts to retail customers or provide services and facilities relating to such accounts) may provide the personal banking services mentioned in (a) above and collect related commissions and fees, or deduct such fees from the account, however they should declare them in the manner specified in Article (11) of these Regulations.

Clarifications and Guidelines (Notice No. 2901/2011)
  1. Relevant fees, charges and commissions applicable to personal customers have been specified in the Appendices to the Circular. Banks are not allowed to levy any other commissions, fees, charges or fines without Central Bank’s written approval. Banks are however free to reduce or exempt their customers from payment of certain fees and charges at their discretion.
  2. Loans and insurance are separate products. Hence it should be a customer’s choice to select either to pay them together over the period of loan or to pay upfront. Banks should however explain to the customer properly and obtain his concurrence before charging him for the insurance.
  3. List of charges and commissions apply to personal loans, car loans and personal overdrafts. Banks may continue to levy charges and commissions on credit cards as hitherto as no change has been proposed in the regulations.
  4. If there are other important fees and charges applicable to certain segment of customers but left out in the Appendices, these may be submitted for consideration of the Central Bank.