Banking Fees and Commissions Instructions No. 4 of 2023

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Palestine Monetary Authority

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

Based on the provisions of Law No. (9) of 2010 concerning Banks, particularly Articles (40 and 72), 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 words and phrases below shall have the meanings assigned to them, unless the context indicates otherwise:

Term	Definition
Corporate Client:	A company, institution, or sole proprietor trader registered and obtaining any service or product from the bank.
Individual Client:	A natural person obtaining any service or product from the bank.
Main Account:	The bank account designated for the client within the banking system at the bank.
Sub-Account:	An 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 authorized for banks to charge against services and products provided to clients.
2. The provisions of these Instructions apply to all banks licensed by the Palestine Monetary Authority to conduct banking business in Palestine.

Article (3)
Bank Accounts

1. The maximum authorized fees and commissions chargeable on bank accounts are as follows:
   a. Opening a main account for a corporate client at (6) six dollars, and (3) three dollars if opened through electronic channels, charged only once regardless of the number of sub-accounts, and (4) four dollars if re-opening the account. b. Managing a current main account or salary transfer at (2) two dollars for individuals and (4) four dollars for corporate clients, charged once monthly.
   c. Managing a sub-account at (2) two dollars for corporate clients, charged once monthly.
   d. Managing an account at (2) two dollars for an individual regarding a current sub-account, provided the number of current sub-accounts exceeds two. e. Dormant main account at (1) one dollar monthly. f. Request for a non-periodic paper statement of account at (0.15) fifteen cents per page, provided that individuals are not charged for the first (5) five pages, and the bank must provide a paper or electronic statement of account free of charge semi-annually. g. Request for a historical statement of a closed account at (0.20) twenty cents per page. h. Authorization or proxy to manage the main account at (2) two dollars for individuals and (5) five dollars for corporate clients, per authorization/proxy transaction.
   i. Modification of signatories (addition or removal) at (2) two dollars for individuals and (5) five dollars for corporate clients.
   j. Issuance of balance, solvency, transaction volume, clearance, or auditor's enhancement certificate in Arabic or English at (5) five dollars for individuals and (10) ten dollars for corporate clients. k. Collection of bills or payment of fee/tax vouchers at (0.50) fifty cents, charged to the client if they opt for payment through the branch.
   l. Signature verification with external parties at (5) five dollars per verification process, regardless of the number of signatures.
   m. Fixed (periodic) payment orders submitted through the branch at (5) five dollars, charged once upon request or modification. n. Photocopying of checks and documents at (0.50) fifty cents per page. o. Postal charges based on actual cost only. p. Division of heirs' shares at (3) three dollars per share, except for minors.

2. The bank is prohibited from charging fees on any of the following:
   a. Managing a main account if a dormant fee is already charged on the same account. b. Opening a main or sub-account for an individual client.
   c. Managing the first two sub-accounts of an individual client.
   d. Opening and managing savings, fixed deposit, and cash certificate accounts. e. A dormant savings account with a balance exceeding (30) thirty dollars or its equivalent in other currencies. f. Accounts of deceased persons. g. Exempting any sub-account from charging a main account management fee, with the bank allowed to charge retroactively up to three months if sufficient balance exists.

Article (4)
Donations and Assistance

1. The bank is prohibited from charging a cash withdrawal fee, account management fee, dormant account fee, or issued debit card fee on the main account for any individual client using their account solely to receive donations or assistance.

2. The bank may charge a fee of up to (3) three dollars, deducted from the remitting entity for incoming transfers classified as donations or assistance, pursuant to an agreement between the bank and the remitting entity.

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

Article (5)
Cash Transactions

1. The bank must charge fees on cash transactions according to the following brackets:
   a. Cash withdrawal or cashing of checks within the branch at (1) one dollar for amounts equal to or less than (2,000) two thousand dollars or their equivalent in other currencies; 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; and at (0.2%) for amounts exceeding (10,000) ten thousand dollars or their equivalent in other currencies. b. Cash deposits within the branch in Shekels only, exceeding (100,000) one hundred thousand Shekels and equal to or less than (300,000) three hundred thousand Shekels monthly at a rate of (0.1%) for individual clients and (0.2%) for corporate clients.
   c. Cash deposits within the branch in Shekels only, exceeding (300,000) three hundred thousand Shekels and equal to or less than (500,000) five hundred thousand Shekels monthly at a rate of (0.2%) for individuals and (0.3%) for corporate clients.
   d. Cash deposits within the branch in Shekels only, exceeding (500,000) five hundred thousand Shekels and equal to or less than (1,000,000) one million Shekels monthly at a rate of (0.4%) for individual and corporate clients. e. Cash deposits within the branch in Shekels only, exceeding (500,000) five hundred thousand Shekels annually and not included in the brackets above, at a rate of (0.2%) for individual and corporate clients. f. Cash deposits within the branch in Shekels only, exceeding one million Shekels monthly at a rate of (0.5%) for individual and corporate clients. g. Metal coin deposits exceeding (200) two hundred Shekels at a rate of (3%) of the deposited amount. h. Deposit of damaged currency based on actual cost only.

2. The bank must comply with transactions for clients classified within the Energy Sector, as follows:
   a. Accepting cash deposits from clients according to their purchase volumes specified in the purchase invoice issued by authorized suppliers. b. Fees on cash deposits are as follows:
   1. Up to 65% of the purchase value at (0.2%), and the bank may agree with the client on a different rate than specified in this clause.
   2. Amounts exceeding 65% of the purchase value at (0.5%).

3. The bank may exempt specific categories from the fees in this Article, subject to prior approval by the Palestine Monetary Authority.

Article (6)
Debit Cards

The maximum authorized fees chargeable on debit cards (ATM) are as follows:

1. Issuance of a new debit card or replacement for lost/damaged cards at (1) one dollar per year.
2. Issuance or renewal of online shopping cards and prepaid payment cards at (5) five dollars.
3. Funding online shopping or prepaid cards through the branch at (1.5%) or (5) five dollars, whichever is less.
4. Dispute or chargeback on debit card transactions at (5) five dollars, charged to the client if the dispute/chargeback is found unjustified, plus any actual costs incurred by correspondent banks.
5. Replacement of PINs for all card types, whether through the branch at (2) two dollars or free through electronic channels.

Article (7)
Financial Transfers

The maximum authorized fees chargeable on financial transfers are as follows:

1. Outward transfer to the bank's branches within Palestine through the branch at (2) two dollars, and free through electronic channels.
2. Outward transfer to other banks' branches within Palestine through the Real-Time Gross Settlement (RTGS) system, as follows:
   a. At (3) three dollars for transfers equal to or less than (3,000) three thousand dollars; b. At (4) four dollars for transfers exceeding (3,000) three thousand dollars but less than (10,000) ten thousand dollars;
   c. At (6) six dollars for transfers exceeding (10,000) ten thousand dollars but less than (100,000) one hundred thousand dollars;
   d. At (12) twelve dollars for transfers equal to or exceeding (100,000) one hundred thousand dollars but less than (200,000) two hundred thousand dollars; e. At a rate of (0.006%) with a maximum cap of (50) fifty dollars for transfers equal to or exceeding (200,000) two hundred thousand dollars.
3. Outward transfer to other banks' branches within Palestine through the Automated Clearing House (ACH) system, charged by the transferor:
   a. At (2) two dollars per file containing (1-2) units, or (1) one dollar for an electronic file. b. At (5) five dollars per paper file containing (3-10) units, or (2) two dollars for an electronic file.
   c. At (10) ten dollars per paper file containing (11-50) units, or (5) five dollars for an electronic file.
   d. At (15) fifteen dollars per paper file containing more than 50 units, or (8) eight dollars for an electronic file. e. At (30) thirty dollars per file where transfers exceed (200,000) two hundred thousand but are less than (500,000) five hundred thousand dollars, excluding transfers related to public sector employee salaries. f. At a rate of (0.006%) with a maximum cap of (50) fifty dollars per file where transfer values reach (500,000) five hundred thousand dollars or more, excluding public sector salary transfers.
4. Outward transfer from the branch bank to the head office or its branches in the home country, as follows:
   a. At (3) three dollars for transfers equal to or less than (10,000) ten thousand dollars if transferred through the branch, and (1) one dollar if through electronic channels. b. At (5) five dollars for transfers exceeding (10,000) ten thousand but less than (50,000) fifty thousand dollars if through the branch, and (1) one dollar if electronic.
   c. At (10) ten dollars for transfers exceeding (50,000) fifty thousand but less than (200,000) two hundred thousand dollars if through the branch, and (2) two dollars if electronic.
   d. At a rate of (0.005%) with a maximum cap of (100) one hundred dollars for transfers equal to or exceeding (200,000) two hundred thousand dollars. e. Actual costs of correspondent or receiving banks are added to the fees in clauses (a/4, b/4, c/4, d/4).
5. Outward transfer to branches of banks outside Palestine, as follows:
   a. At (7) seven dollars for transfers equal to or less than (10,000) ten thousand dollars. b. At (15) fifteen dollars for transfers exceeding (10,000) ten thousand but less than (20,000) twenty thousand dollars.
   c. At (30) thirty dollars for transfers exceeding (20,000) twenty thousand but equal to or less than (75,000) seventy-five thousand dollars.
   d. At a rate of (0.04%) with a maximum cap of (200) two hundred dollars for transfers exceeding (75,000) seventy-five thousand dollars. e. Actual costs of correspondent or receiving banks are added to the fees in clauses (a/5, b/5, c/5, d/5).
6. Modification of an outward transfer due to inaccurate client information at (5) five dollars.
7. Inward transfer from outside Palestine, as follows:
   a. At (2) two dollars for transfers equal to or less than (5,000) five thousand dollars. b. At (4) four dollars for transfers exceeding (5,000) five thousand dollars.
   c. Transfers received in Shekels or specifying the OUR code are exempt from this clause.
8. Inquiry on an outward transfer to other banks outside Palestine at (7) seven dollars, plus actual costs of correspondent or receiving banks.

Article (8)
Credit Facilities / Financing

The maximum authorized fees chargeable on credit facilities/financing are as follows:

1. Granting, renewing, or increasing credit limits at a rate of (0.5%) annually with a maximum cap of (1%) over the credit life for individual clients, and at a rate of (1%) annually with a maximum cap of (2%) over the credit life for corporate clients.
2. Cancellation of facilities/financing upon client request after management approval but before implementation at (5) five dollars for individuals and (10) ten dollars for corporate clients.
3. Rescheduling non-performing facilities at a rate of (1%) per rescheduling on the additional balance.
4. Substitution of guarantor at (5) five dollars, charged by the debtor for each guarantor.
5. Modification or change of tangible collateral at (10) ten dollars.
6. Deferral of one or more installments at a rate of (1%) of the deferred installment value for the client, provided it does not exceed (10) ten dollars for individual clients.
7. Early settlement of credit facilities/financing, as follows:
   a. At a rate of (0.5%) of the balance to be settled for individual clients. b. At a rate of (1.5%) for corporate clients on the balance to be settled.
8. Unused limit fee at a rate of (1%) annually, charged to corporate clients.

Article (9)
Checks

The maximum authorized fees chargeable on checks are as follows:

1. Issuance of a standard checkbook at (0.40) forty cents per check sheet.
2. Issuance of a commercial checkbook at (0.75) seventy-five cents per check sheet, with an additional fee up to actual cost if the client requests additions to the check.
3. Returned check for insufficient funds at (15) fifteen dollars per check, charged to the issuer and prohibited from being charged to the beneficiary; at (20) twenty dollars for checks returned through Israeli clearing.
4. Returned check for technical reasons at (10) ten dollars, charged when a check is returned due to signature mismatch, routing error, or lack of drawer's endorsement on modification; charged to the issuer and prohibited from being charged to the beneficiary, including Israeli clearing checks.
5. Deposit of post-dated checks for collection at (0.30) thirty cents per check.
6. Withdrawal of checks from collection at (0.50) fifty cents per check.
7. Collection of checks equal to or less than (10,000) ten thousand dollars at (0.50) fifty cents per check, inclusive of electronic check clearing system costs supervised by the Authority.
8. Collection of checks exceeding (10,000) ten thousand dollars and equal to or less than (40,000) forty thousand dollars at (2) two dollars per check, inclusive of electronic clearing costs.
9. Collection of checks exceeding (40,000) forty thousand dollars and equal to or less than (100,000) one hundred thousand dollars at (5) five dollars per check, inclusive of electronic clearing costs.
10. Collection of checks exceeding (100,000) one hundred thousand dollars at (10) ten dollars per check, inclusive of electronic clearing costs.
11. Collection of checks drawn on Israeli banks (purchased and post-dated) at (1) one dollar per check or actual cost, whichever is less.
12. Stopping a check at (5) five dollars per transaction, regardless of the number or sequence of checks.
13. Certification of a check at (5) five dollars per check.
14. Issuance of a bank check at (20) twenty dollars per check, and at a rate of (0.01%) with a maximum cap of (50) fifty dollars for checks equal to or exceeding (200,000) two hundred thousand dollars, charged upon client request.
15. Collection of foreign checks at (30) thirty dollars per check, plus a SWIFT fee.
16. Cashing of incoming checks on the client's account from outside Palestine according to Article (7) of these Instructions.

Article (10)
Unspecified Fees

The bank is prohibited from charging any of the following fees prior to obtaining client approval:

1. Issuance or renewal of a credit card, or issuance of replacement for damaged/lost cards.

2. Cash withdrawal via credit card.

3. Request for refund of a transfer, provided the fee does not exceed actual costs incurred by the bank.

4. Returned external checks (outside Palestine), provided the fee does not exceed actual costs incurred by the bank.

5. Opening or cancellation of a letter of credit.

6. Covering, advising, transferring, extending, or enhancing a letter of credit.

7. Granting credit limits.

8. Processing letters of credit documents.

9. Submitting or retaining documents non-compliant with letter of credit terms.

10. Modifying letter of credit terms (outward/inward).

11. Requesting a special certificate for the letter of credit.

12. Issuing collection vouchers.

13. Transferring collection vouchers.

14. Endorsing shipping vouchers.

15. Returning documents for non-payment/non-acceptance.

16. Accepting time-drawn guaranteed/unsecured withdrawals.

17. Inward deferred withdrawal.

18. Guaranteeing inward/outward withdrawals.

19. Postponing payment of accepted guaranteed withdrawal.

20. Granting withdrawal limits.

21. Issuing, extending, enhancing, and modifying guarantees of all types.

22. Granting guarantee limits.

23. Discounting promissory notes.

24. Collecting and re-collecting unpaid promissory notes.

25. Safe deposit boxes (vaults).

Article (11)
Other Fees and Commissions

1. Subject to the provisions of these Instructions, banks may conclude special pricing agreements with corporate clients when offering programs or a bundle of banking products and services, including determining the fee value for each product or service.
2. The bank is prohibited from charging any fees or commissions not listed in these Instructions prior to obtaining prior written approval from the Palestine Monetary Authority.

Article (12)
Electronic Channel Caps

The bank must comply with the following:

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

Article (13)
Exemptions

Personal accounts for each of the following are exempt from the provisions of Article (3), paragraph (1):

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

Article (14)
General Provisions

1. For the purpose of applying these Instructions, fees or commissions shall be charged in US Dollars or their equivalent in circulating currencies.
2. For calculating fees and commissions, the bank must adopt currency exchange rates according to its approved price list on the date of recording fees and commissions in client accounts.
3. The National Key fee and credit reports shall be charged according to prevailing Instructions.
4. The bank must clearly and legibly display the schedule of fees and commissions in all branches, offices, and on its website.
5. The bank may process cash withdrawals or cashing of checks through the branch for amounts equal to or exceeding (50,000) fifty thousand dollars or their equivalent in other currencies, within a maximum period of two working days.

Article (15)
Penalties

Any person violating the provisions of these Instructions shall be penalized according to Law 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 amending Instructions No. (7/2014) concerning Fees and Commissions are repealed.
3. Instructions No. (6) of 2021 concerning the cash deposit fee for Israeli Shekels are repealed.
4. Instructions No. (1) of 2023 concerning Banking Fees and Commissions are repealed.
5. All provisions inconsistent with these Instructions are repealed.

Article (17)
Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions. These Instructions apply from 2023/06/01, and banks requiring time to amend their systems to respond to these Instructions may submit a written request to the Authority regarding the necessary period for implementation and specifying the parts and commissions subject to deferred application.

Issued in Ramallah, on 2023/04/27.

Dr. Firas Malhem
Governor
[Signature]