MEBL, BAFL eliminate 5% fee on high-value deposits

November 26, 2024 (MLN): After imposing a fee on large month-end deposits, Meezan Bank Limited (MEBL) and Bank AL Falah (BAFL) have now decided to remove the recently introduced charges.

Earlier, several Pakistani commercial banks had begun to impose this charge to discourage large deposits, which in turn weakened their Advance-to-Deposit Ratio (ADR). Higher ADR figures were critical for these banks due to additional taxation, and ultimately, they made the decision to impose the fee.

In a major turn of events, as the ADR position of banks has improved on a weekly basis, MEBL and BAFL have decided to eliminate this fee.

BAFL  imposed a 5% fee on month-end balances exceeding Rs5 billion, certain other banks have notified amendments to their existing schedule of bank charges.

Meanwhile, MEBL applied a similar monthly fee of 5% on deposit accounts where the balance exceeded Rs1bn.

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