The State Bank has asked banks not to charge students for the collection of fees. The State Bank issued a circular on Wednesday with concerns that some of the banks were recovering service charges from the students of educational institutions for the collection of their fees.

“Since the collection of school fees by the bank is the deposit of money on account of its client i.e. educational institution, recovery of any charge from the students is not justifiable,” said the SBP circular.

Almost all the recognised schools of the country accept their monthly fees and other school fees in the shape of demand drafts and banks have different schedules of charges but some banks were charging heavily at the time of DDs, issued by banks in the favor of school accounts

The State Bank advised all the banks not to levy any service charges for collection of fees from students of educational institutions in any manner whatsoever.