Bank Fees You Can Refuse in Pakistan: 10 Charges SBP Does Not Allow
SBP bans banks from charging for counting cash at the counter, collecting a bill or a visa verification letter. See the 10 charges you can refuse in Pakistan.
Short answer: SBP's conduct framework bans banks in Pakistan from charging for counting your cash at the counter, for collecting a utility bill, for a letter your embassy asks for, and for any fee you never agreed to. A bank also may not charge twice for one service. If you were charged, ask for a reversal in writing.
A teacher pays her school fee at the bank counter and sees a Rs 50 line on the slip. A man needs a bank letter for a visa and is told it has a "processing fee". Both are small amounts, and most people pay and move on. The State Bank of Pakistan (SBP) says some of these charges are not allowed at all.
We read SBP's Business Conduct and Fair Treatment of Consumers Regulatory Framework on 12 October 2026. It is part of BPRD Circular No. 04 of 2025, dated 17 October 2025. Section 3.2.4 lists what a bank must not do. We have not checked the schedule of charges of any single bank, so a bank may still show a fee that breaks the rule. Our job here is to show you the rule.
SBP lists 10 charges a bank may not take from you
Section 3.2.4 of the framework says banks and development finance institutions shall not recover a set of charges. Some are fees for a service the law or SBP has made free. Others are fees on top of a fair price, such as a second charge for one breach.
| Charge | What SBP's framework says |
|---|---|
| Cash handling or sorting at the counter | No charge when you hand cash over the counter. Online deposit and withdrawal fees may follow the schedule of charges. |
| Collecting a utility bill | No fee for collecting a bill payment |
| Bank letter for a visa | No processing fee for verifying an account or statement for foreign missions and embassies |
| School or college fee deposit | No service fee for a student who deposits fee directly. A pay order or draft may cost at most 0.50% or Rs 25, whichever is less. |
| A second charge for one service | Not allowed, including twice for a single breach of contract |
| A service you did not receive or agree to | Not allowed |
| Direct debit from your account | Needs your explicit consent |
| A fine SBP put on the bank | Cannot be passed on to you through a standard clause |
| Third-party costs such as valuation or repossession | Only the actual cost the bank paid |
| Closing your account at your request | No charge |
Cash counting, bill collection and visa letters are free over the counter
A bank may not recover any charge for handling or sorting your cash at the counter, and may neither refuse the service nor charge on another excuse. It also may not charge for collecting utility bills, or for a verification letter an embassy asks for.
The framework is careful on one point. Banks may recover service charges on deposits and withdrawals made online if those charges appear in their schedule of charges. So a listed fee for an online deposit or withdrawal can still be lawful. A fee for taking your cash over the counter is not.
Fee payments for students have their own cap. The bank may not take a service fee from a student paying directly into the institution's collection account. Where a pay order or demand draft is made out to a school, a board or HEC, the charge may not exceed 0.50% of the amount or Rs 25 per instrument, whichever is less.
A bank cannot debit your account or add a fee without your consent
The framework bans direct debits without your explicit consent and any charge for a service not rendered or rendered without consent. It also bans clubbing several fees into one debit entry. Each fee must be debited separately, so you can see it.
Late payment charges must show up in your account and be notified when they accrue. A bank should not wait until a loan matures and then reveal a large pile of late fees. Where a fee rises by 25% or more, the bank must record its reasons for SBP inspectors, though the rule does not stop the rise.
Subscription services such as SMS alerts or credit shield have a free look period of at least 15 days. Our guide on cancelling a bank subscription covers that rule in detail.
Some accounts and cards carry extra protection
Regular current and saving accounts must be free to open and maintain and need no minimum balance. Accounts of government, semi-government and defence pensioners are exempt from service charges. BISP card holders cannot be charged an inter-switch fee on ATM transactions anywhere in the country.
Our guide on stopping a minimum balance charge covers the account rules. A guide on withdrawing a BISP payment covers how those payments reach the account.
The same section says banks must not charge for services connected with collecting and paying Zakat. They must stamp, date and sign a photocopy of your CZ-50 declaration form when you hand it in. Our guide on stopping Zakat deduction shows the form.
How to get a wrong charge reversed
Find the charge on your statement, quote the rule, and ask the bank's complaint unit in writing for a reversal. Keep the tracking number it must send. If the bank rejects you, it must explain why in writing and tell you where to go next.
- Mark the charge on your statement or app history and note its date and amount.
- Check the bank's schedule of charges on its website for the same fee.
- Write to the complaint unit by email or at the branch. Quote "section 3.2.4, BPRD Circular No. 04 of 2025".
- Ask for the complaint tracking number by SMS or email.
- If a minor complaint is not fixed in 7 working days, escalate it to the bank's higher complaint level.
- After that, complain to the Banking Mohtasib or on the SBP Sunwai portal.
See also the earlier overview of what your bank charges and what is free. For transfers, IBFT charges have their own cap.
Common questions
Can a bank charge me for counting cash I deposit at the counter?
No. SBP's framework says banks must not recover charges for cash handling or sorting at the counter, and cannot refuse the service or charge for it on another pretext.
Can a bank charge for taking my electricity or gas bill?
No. The framework lists any fee for collecting utility bill payments among the charges banks must not recover from customers.
Can a bank charge me for a letter my embassy asks for?
No. SBP says banks may not recover a processing fee for verifying an account or statement received from foreign missions or embassies for visa purposes, either directly or by debiting the account.
Can a bank take money from my account without asking me?
Not for a direct debit. The framework says a bank may not perform direct debits from your account without your explicit consent.
Is it free to close a bank account?
Yes. The framework says a bank shall close your account at your request and shall not apply any charge for closing it. Our guide on closing a bank account lists the steps.
What if my bank refuses to reverse the fee?
Ask for the reason in writing, then take the complaint to the Banking Mohtasib or the SBP Sunwai portal.
How we verified this
What we checked, where we read it, and what we could not confirm.
We read BPRD Circular No. 04 of 2025 and its attached framework on 12 October 2026, sections 3.2.1, 3.2.4 and 3.3. We did not read any individual bank's schedule of charges, so we cannot say which banks still show a fee that conflicts with the rule. SBP can amend the framework.
About the author
Technology Journalist & Multimedia Producer
Ahmad Ali is a technology journalist and multimedia producer at Pakistan Era, joining the team in October 2026. He covers consumer technology and digital life for Pakistani readers, combining research with hands-on product testing.
