Instructions No. (4) of 2023 Concerning Banking Fees and Commissions

Instructions No. (04) of 2023
Concerning Banking Fees and Commissions

Based on the provisions of Law Decree No. (9) of 2010 concerning Banks, particularly Articles (40, 72) thereof, In accordance with the powers delegated to us, And in pursuit of the public interest, We have issued the following Instructions:

Article (1)
Definitions

The following words and phrases shall have the meanings assigned to them below, unless the context indicates otherwise:

Corporate Client:	The company, institution, or sole proprietor trader registered as an individual who obtains any service or product from the Bank.
Individual Client:	The natural person who obtains any service or product from the Bank.
Main Account:	The bank account designated for the client in the banking system at the Bank.
Sub-account:	The account branching from the main bank account.
Electronic Channels:	Technological means through which banking services are provided.
Energy Sector	Providers and marketers of fuels and electricity.

Article (2)
Objective and Scope of Application

1. The provisions of these Instructions aim to determine the types and values of fees and commissions that banks are permitted to collect for the services and products they provide to clients.
2. The provisions of these Instructions apply to all banks licensed by the Palestine Monetary Authority to conduct banking business in Palestine.

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Article (3)
Bank Accounts

1. The maximum limit of fees and commissions permitted to be collected on bank accounts is as follows:
   a. Opening a main account for a corporate client at a rate of (6) six dollars, and at a rate of (3) three dollars if the account is opened through electronic channels, such that this commission is collected only once regardless of the number of sub-accounts, and at a rate of (4) four dollars if the account is re-opened. b. Managing the main current account or salary transfer at a rate of (2) two dollars for individuals and (4) four dollars for a corporate client, such that it is collected once per month.
   c. Managing a sub-account at a rate of (2) two dollars for a corporate client, such that it is collected once per month.
   d. Managing an account at a rate of (2) two dollars for an individual for the sub-current account, in case the number of sub-current accounts for the client exceeds two accounts. e. Dormant main account at a rate of (1) one dollar per month. f. Request for a non-periodic paper account statement at a rate of (0.15) fifteen cents per page, provided that the commission is not collected from individuals for (5) five pages, and the Bank must provide the individual with a paper or electronic account statement semi-annually for free. g. Request for a historical account statement for a closed account at a rate of (0.20) twenty cents per page. h. Authorizing or empowering a person to manage the main account at a rate of (2) two dollars for an individual, and at a rate of (5) five dollars for a corporate client, for each authorization or empowerment transaction.
   i. Modifying signatories, whether by addition or removal, at a rate of (2) two dollars for an individual and at a rate of (5) five dollars for a corporate client.
   j. Issuing a balance, solvency, transaction volume, clearance, or auditor's enhancement certificate in Arabic or English at a rate of (5) five dollars for an individual and at a rate of (10) ten dollars for a corporate client. k. Collecting bills or paying fee/tax vouchers at a rate of (0.50) fifty cents, such that it is collected from the client if they wish to pay through the branch.

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l. Signature verification with external parties at a rate of (5) five dollars per verification process regardless of the number of signatures.  
m. Fixed payment orders (periodic) submitted through the branch at a rate of (5) five dollars, such that the commission is collected once upon requesting the order or modifying it. n. Photocopying checks and documents at a rate of (0.50) fifty cents per page. o. Postal expenses based on actual cost only. p. Division of heirs' shares at a rate of (3) three dollars per share, except for minors.

2. The Bank is prohibited from doing the following:
a. Collecting commissions on any of the following:
1. Managing a main account if a dormant account commission is collected on the same account.
2. Opening a main account or sub-account for an individual client.
3. Managing the sub-account for an individual client for the first two sub-accounts.
4. Opening and managing savings, time deposit, and cash certificate accounts.
5. A savings account with a balance exceeding (30) thirty dollars or its equivalent in other currencies.
6. Accounts of deceased persons.
b. Revealing any of the sub-accounts to collect a main account management commission, and the Bank is allowed to collect the commission retroactively with a maximum limit of three months if there is a balance in the account.

Article (4)
Donations and Assistance

1. The Bank is prohibited from collecting a cash withdrawal commission, account management commission, dormant account commission, or issued debit card commission on the main account of any individual client who uses their account solely for the purpose of receiving donations or assistance.
2. The Bank may collect a commission at a rate of (3) three dollars maximum, deducted from the remitting entity of incoming remittances as a donation or assistance, pursuant to an agreement concluded between the Bank and the remitting entity.

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3. The Bank may agree with entities funding social assistance to determine the value of the commission on amounts received through the Bank, and it is prohibited to deduct any commission from the final beneficiary of donations or assistance.

Article (5)
Cash Transactions

1. The Bank must collect a commission on cash transactions according to the following brackets:
   a. Cash withdrawal or cashing checks within the branch at a rate of (1) one dollar for amounts equal to or less than (2,000) two thousand dollars or its equivalent in other currencies, and at a rate of (0.05%) for amounts exceeding (2,000) two thousand dollars and equal to or less than (10,000) ten thousand dollars or its equivalent in other currencies, and (0.2%) for amounts exceeding (10,000) ten thousand dollars or its equivalent in other currencies. b. Cash deposits within the branch in Shekel currency only that exceed (100,000) one hundred thousand Shekels and are equal to or less than (300,000) three hundred thousand Shekels monthly at a rate of (0.1%) for an individual client and (0.2%) for a corporate client.
   c. Cash deposits within the branch in Shekel currency only that exceed (300,000) three hundred thousand Shekels and are equal to or less than (500,000) five hundred thousand Shekels monthly at a rate of (0.2%) for an individual and (0.3%) for a corporate client.
   d. Cash deposits within the branch in Shekel currency only that exceed (500,000) five hundred thousand Shekels and are equal to or less than (1,000,000) one million Shekels monthly at a rate of (0.4%) for an individual client and a corporate client. e. Cash deposits within the branch in Shekel currency only that exceed (500,000) five hundred thousand Shekels annually and do not fall within the brackets mentioned in this Article at a rate of (0.2%) for an individual client and a corporate client. f. Cash deposits within the branch in Shekel currency only that exceed one million Shekels monthly at a rate of (0.5%) for an individual client and a corporate client. g. Coin cash deposit that exceeds (200) two hundred Shekels at a rate of (3%) of the deposited amount. h. Deposit of damaged cash based on actual cost only.

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2. The Bank must comply with dealing with clients classified within the Energy Sector, as follows:
   a. Accepting cash deposits from clients according to the volume of their purchases specified in the purchase invoice issued by the suppliers in accordance with the rules. b. The commission on cash deposits is as follows:
   1. Up to 65% of the value of purchases at a rate of 0.2%, and the Bank may agree with the client on a different rate other than the commission specified in this clause.
   2. Amounts exceeding 65% of the value of purchases at a rate of 0.5%.
3. The Bank may exempt specific categories from the commissions mentioned in this Article, provided that prior approval is obtained from the Palestine Monetary Authority.

Article (6)
Debit Cards

The maximum limit of commissions permitted to be collected on debit (ATM) cards is as follows:

1. Issuing a new debit card or issuing a replacement for a lost or damaged card at a rate of (1) one dollar per year.
2. Issuing or renewing an online shopping card and a prepaid card at a rate of (5) five dollars.
3. Funding an online shopping card and a prepaid card through the branch at a rate of (1.5%) or (5) five dollars, whichever is less.
4. Disputing or objecting to debit card transactions at a rate of (5) five dollars, such that the commission is collected from the client if the dispute or objection submitted is incorrect, in addition to any actual costs incurred by correspondent banks.
5. Replacing PINs for all types of cards, whether debit, through the branch at a rate of (2) two dollars and free of charge through electronic channels.

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Article (7)
Financial Transfers

The maximum limit of commissions permitted to be collected on financial transfers is as follows:

1. Transfer issued to the Bank's branches within Palestine through the branch at a rate of (2) two dollars and free of charge through electronic channels.
2. Transfer issued to other banks' branches within Palestine through the Real-Time Gross Settlement (RTGS) system as follows:
   a. At a rate of (3) three dollars for transfers equal to or less than (3,000) three thousand dollars or its equivalent in other currencies. b. At a rate of (4) four dollars for transfers exceeding (3,000) three thousand dollars or exceeding (10,000) ten thousand dollars or its equivalent in other currencies.
   c. At a rate of (6) six dollars for transfers exceeding (10,000) ten thousand dollars and less than (100,000) one hundred thousand dollars or its equivalent in other currencies.
   d. At a rate of (12) twelve dollars for transfers equal to or exceeding (100,000) one hundred thousand dollars and less than (200,000) two hundred thousand dollars or its equivalent in other currencies. e. At a rate of (0.006%) with a maximum of (50) fifty dollars for transfers equal to or exceeding (200,000) two hundred thousand dollars or its equivalent in other currencies.
3. Transfer issued to other banks' branches within Palestine through the Automated Clearing House (ACH) system, collected from the transfer requester:
   a. At a rate of (2) two dollars per file containing (1-2) units or (1) one dollar for an electronic file. b. At a rate of (5) five dollars per paper file containing (3-10) units or (2) two dollars for an electronic file.
   c. At a rate of (10) ten dollars per paper file containing (11-50) units or (5) five dollars for an electronic file.
   d. At a rate of (15) fifteen dollars per paper file containing more than 50 units or (8) eight dollars for an electronic file.

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e. At a rate of (30) thirty dollars per file where transfers exceed (200,000) two hundred thousand dollars and are less than (500,000) five hundred thousand dollars or its equivalent in other currencies, excluding transfers related to public sector employees' salaries. f. At a rate of (0.006%) with a maximum of (50) fifty dollars per file where the value of transfers reaches (500,000) five hundred thousand dollars or more or its equivalent in other currencies, excluding transfers related to public sector employees' salaries.  

4. Transfer issued from the foreign bank to the Bank's headquarters or one of its branches in the home country as follows:
a. At a rate of (3) three dollars for transfers equal to or less than (10,000) ten thousand dollars or its equivalent in other currencies if the transfer is made through the branch and (1) one dollar if the transfer is made through electronic channels. b. At a rate of (5) five dollars for transfers exceeding (10,000) ten thousand dollars and less than (50,000) fifty thousand dollars or its equivalent in other currencies if the transfer is made through the branch and (1) one dollar if the transfer is made through electronic channels.
c. At a rate of (10) ten dollars for transfers exceeding (50,000) fifty thousand dollars and less than (200,000) two hundred thousand dollars or its equivalent in other currencies if the transfer is made through the branch and (2) two dollars if the transfer is made through electronic channels.
d. At a rate of (0.005%) with a maximum of (100) one hundred dollars for transfers equal to or exceeding (200,000) two hundred thousand dollars or its equivalent in other currencies. e. The value of the commission mentioned in clauses (4/a, 4/b, 4/c, 4/d) of this Article is added to any actual costs of correspondent or receiving banks for the transfer.
5. Transfer issued to branches of banks outside Palestine as follows:
a. At a rate of (7) seven dollars for transfers equal to or less than (10,000) ten thousand dollars or its equivalent in other currencies. b. At a rate of (15) fifteen dollars for transfers exceeding (10,000) ten thousand dollars and equal to or less than (20,000) twenty thousand dollars or its equivalent in other currencies.

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c. At a rate of (30) thirty dollars for transfers exceeding (20,000) twenty thousand dollars and equal to or less than (75,000) seventy-five thousand dollars or its equivalent in other currencies.  
d. At a rate of (0.04%) with a maximum of (200) two hundred dollars for transfers exceeding (75,000) seventy-five thousand dollars or its equivalent in other currencies. e. The value of the commission mentioned in clauses (5/a, 5/b, 5/c, 5/d) of this Article is added to any actual costs of correspondent or receiving banks for the transfer.  

6. Modifying a transfer issued due to inaccuracy of information provided by the client at a rate of (5) five dollars.
7. Incoming transfer from outside Palestine as follows:
a. At a rate of (2) two dollars for transfers equal to or less than (5,000) five thousand dollars or its equivalent in other currencies. b. At a rate of (4) four dollars for transfers exceeding (5,000) five thousand dollars or its equivalent in other currencies.
c. The provisions of this clause do not apply to incoming transfers in Shekel currency or those specifying the OUR code.
8. Inquiry about a transfer issued to other banks outside Palestine at a rate of (7) seven dollars, to which any actual costs incurred by correspondent or receiving banks are added.

Article (8)
Credit Facilities/Financing

The maximum limit of commissions permitted to be collected on credit facilities/financing is as follows:

1. Granting credit facilities, renewing them, or increasing their limit at a rate of (0.5%) annually with a maximum of (1%) over the life of the credit for an individual client, and at a rate of (1%) annually with a maximum of (2%) over the life of the credit for a corporate client.
2. Canceling facilities/financing upon the client's request after management approval of the grant and before execution at a rate of (5) five dollars for an individual client and (10) ten dollars for a corporate client.
3. Rescheduling non-performing facilities at a rate of (1%) for each rescheduling of the additional balance.
4. Replacing a guarantor at a rate of (5) five dollars, collected from the debtor for each guarantor.

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5. Modifying or changing tangible collateral at a rate of (10) ten dollars.
6. Postponing one or more installments at a rate of (1%) of the value of the postponed installments for the client, provided that it does not exceed (10) ten dollars for an individual client.
7. Early repayment of credit facilities/financing as follows:
   a. At a rate of (0.5%) of the balance to be repaid for an individual client. b. At a rate of (1.5%) for a corporate client of the balance to be repaid.
8. Unused limit at a rate of (1%) annually, collected from the corporate client.

Article (9)
Checks

The maximum limit of commissions permitted to be collected on checks is as follows:

1. Issuing a regular checkbook at a rate of (0.40) forty cents per check sheet.
2. Issuing a commercial checkbook at a rate of (0.75) seventy-five cents per check sheet, and an additional commission may be collected up to the cost if the client requests any additions to the check sheet.
3. Check returned for insufficient funds at a rate of (15) fifteen dollars per check, and the commission is collected from the issuer of the check and it is prohibited to collect it from the beneficiary, and at a rate of (20) twenty dollars for checks returned through Israeli clearing.
4. Check returned for technical reasons at a rate of (10) ten dollars, collected in case of returning the check due to signature discrepancy, routing number discrepancy, or the drawer not signing the modification, and the commission is collected from the issuer of the check and it is prohibited to collect it from the beneficiary, including checks returned through Israeli clearing.
5. Deposit of future checks with a collection fee at a rate of (0.30) thirty cents per check.
6. Withdrawing checks from collection at a rate of (0.50) fifty cents per check.
7. Collecting checks whose value is equal to or less than (10,000) ten thousand dollars or its equivalent in other currencies at a rate of (0.50) fifty cents per check, and the commission includes the cost of electronic check clearing supervised by the Palestine Monetary Authority.

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8. Collecting checks whose value exceeds (10,000) ten thousand dollars and is equal to or less than (40,000) forty thousand dollars or its equivalent in other currencies at a rate of (2) two dollars per check, and the commission includes the cost of electronic check clearing supervised by the Palestine Monetary Authority.
9. Collecting checks whose value exceeds (40,000) forty thousand dollars and is equal to or less than (100,000) one hundred thousand dollars or its equivalent in other currencies at a rate of (5) five dollars per check, and the commission includes the cost of electronic check clearing supervised by the Palestine Monetary Authority.
10. Collecting checks whose value exceeds (100,000) one hundred thousand dollars or its equivalent in other currencies at a rate of (10) ten dollars per check, and the commission includes the cost of electronic check clearing supervised by the Palestine Monetary Authority.
11. Collecting checks drawn on Israeli banks (purchased and future) at a rate of (1) one dollar per check or actual cost, whichever is less.
12. Stopping a check at a rate of (5) five dollars per stop transaction regardless of the number of checks or their sequence.
13. Certifying a check at a rate of (5) five dollars per check.
14. Issuing a bank check at a rate of (20) twenty dollars per check, and at a rate of (0.01%) with a maximum of (50) fifty dollars for checks equal to or exceeding (200,000) two hundred thousand dollars or its equivalent in other currencies, collected if the client requests the issuance of the check.
15. Collecting foreign checks at a rate of (30) thirty dollars per check, to which a SWIFT commission is added.
16. Cashing checks received on the client's account from outside Palestine according to the provisions of Article (7) of these Instructions.

Article (10)
Commissions with Undefined Value

The Bank is prohibited from collecting any of the following commissions before obtaining the client's approval:

1. Issuing or renewing a credit card or issuing a replacement for a damaged or lost card.
2. Cash withdrawal using a credit card.

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3. Requesting a transfer refund, provided that the value of the commission does not exceed the actual costs incurred by the Bank.
4. Returned external checks (outside Palestine), provided that the value of the commission does not exceed the actual costs incurred by the Bank.
5. Opening or canceling a letter of credit.
6. Covering, notifying, transferring, extending, or enhancing a letter of credit.
7. Granting credit limits.
8. Trading credit documents.
9. Presenting or retaining documents violating the terms of the credit.
10. Modifying credit terms (issued/imported).
11. Requesting a special certificate for the credit.
12. Issuing collection drafts.
13. Transferring collection drafts.
14. Endorsing shipping drafts.
15. Returning documents for non-payment/non-acceptance.
16. Accepting guaranteed/unsecured time drafts.
17. Incoming deferred drafts.
18. Guaranteeing outgoing/incoming drafts.
19. Delaying payment of accepted guaranteed drafts.
20. Granting draft limits.
21. Issuing, extending, enhancing, and modifying guarantees of all types.
22. Granting guarantee limits.
23. Discounting promissory notes.
24. Collecting promissory notes and re-presenting unpaid promissory notes.
25. Safe deposit boxes (vaults).

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Article (11)
Other Fees and Commissions

1. Subject to the provisions contained in these Instructions, the Bank may, when offering programs or a group of banking products and services, sign special pricing agreements with the corporate client; including determining the value of the commission for each product or service.
2. The Bank is prohibited from collecting any fees or commissions not mentioned in these Instructions before obtaining prior written approval from the Palestine Monetary Authority.

Article (12)
Electronic Channel Limits

The Bank must comply with the following:

1. The minimum daily withdrawal limit for debit cards through ATMs must not be less than (2,000) two thousand dollars or its equivalent in other currencies, unless the Palestine Monetary Authority decides otherwise upon the Bank's request.
2. The minimum daily withdrawal limit through the National Key must not be less than (1,000) one thousand dollars or its equivalent in other currencies.

Article (13)
Exemption

Personal accounts for each of the following are exempt from the provisions of Article (3) clause (1) of these Instructions:

1. Disabled individuals according to the provisions of Law No. (4) of 1999 concerning the rights of persons with disabilities.
2. Every person who has exceeded the age of (70) seventy years.

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Article (14)
General Provisions

1. For the purpose of applying the provisions of these Instructions, fees or commissions are collected in US dollars or their equivalent in circulating currencies.
2. For the purpose of calculating fees and commissions, the Bank must adopt currency exchange rates according to the approved price list at the date of recording the fees and commissions in the clients' accounts.
3. The National Key commission and credit reports are collected according to the prevailing Instructions.
4. The Bank must announce the fee and commission schedule clearly and legibly in all branches and offices and on the electronic website.
5. The Bank may execute cash withdrawals or cash check cashing through the branch for amounts equal to or exceeding (50,000) fifty thousand dollars or its equivalent in other currencies, within a maximum period of two working days.

Article (15)
Penalties

Anyone who violates the provisions of these Instructions shall be punished according to the provisions of Law Decree No. (9) of 2010 concerning Banks.

Article (16)
Repeal

1. Instructions No. (7) of 2014 concerning Fees and Commissions are repealed.
2. Instructions No. (4) of 2016 concerning the amendment of Instructions on Fees and Commissions No. (07/2014) are repealed.
3. Instructions No. (6) of 2021 concerning the commission on cash deposits in Israeli Shekel currency are repealed.
4. Instructions No. (1) of 2023 concerning Banking Fees and Commissions are repealed.
5. Anything inconsistent with the provisions of these Instructions is repealed.

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Article (17)
Implementation and Enforcement

All competent authorities, each within their respective jurisdiction, shall implement the provisions of these Instructions, and they shall apply from 2023/06/01. Banks that need time to modify their systems to respond to the requirements of these Instructions may submit a written request to the Palestine Monetary Authority regarding the time period necessary to apply the Instructions and specify the parts and commissions to be deferred.

Issued in Ramallah, on 2023/04/27.

Dr. Firas Malham
Governor
[Signature]

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