Meezan Bank and Bank Alfalah Withdraws Controversial Fee on High-Balance Accounts

Meezan Bank Limited and Bank Alfalah immediately withdrew their recently introduced 5% monthly fee on high-balance accounts. The decision, which was announced in an official notification, intends to improve consumer convenience and provide a more accommodating banking experience.

Earlier this month, both banks published separate papers detailing changes to their Schedule of Charges (SOC) for July to December 2024. Meezan Bank has said that it will charge a 5% monthly fee on deposit amounts of more than Rs1 billion at the end of each month.

However, the bank has now retracted this policy, emphasizing its commitment to customer satisfaction. “MBL always values its customers and is committed to providing quality banking services. The previously communicated amendments to the SOC shall stand deleted with immediate effect,” the bank announced.

Similarly, Bank Alfalah had announced that it would levy a 5% monthly fee on checking account balances exceeding Rs5 billion. The bank has now reversed its decision, stating, “Bank Alfalah is unilaterally withdrawing the 5% monthly fee on month-end balances of PKR 5 billion and above, with immediate effect.”

According to industry analysts, the charges were in response to the federal government’s decree, which required banks with an Advance-to-Deposit Ratio (ADR) of less than 50% to pay a significant 16% tax. As a consequence of the tax burden, financial institutions are being pressured to look for additional income sources, such as increasing customer fees.

However, the present charge reversal directly results from the company’s swift responsiveness to public and industry comments, ensuring a balanced approach to retaining profitability while prioritizing customer satisfaction.