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  • BC-4 BC-4 Customer account services and charges

    • BC-4.1 BC-4.1 Minimum balance and charges on accounts

      • BC-4.1.1

        Banks may impose no more than a monthly charge of BD 1 when the monthly weighted average balance for saving investment accounts for individuals falls below BD 20 (or equivalent in other currencies).

      • BC-4.1.2

        Orphans, widows, pensioners, individuals receiving social subsidies from the Ministry of Labour & Social Affairs, students and Bahraini nationals with a monthly salary below BD 250 should be exempted from maintaining the above minimum balance requirement for saving investment accounts.

        Banks should establish criteria for determining the eligibility of a person for exemption from the above charges and should notify their concerned customers accordingly.

    • BC-4.2 BC-4.2 Disclosure of Charges

      • BC-4.2.1

        In order to improve customer awareness and enhance transparency of bank charging structures, retail banks should display in Arabic and in English, by notice in their banking halls (both head offices and branches), a list of all current charges.

        Amended April 2011
        October 2007

      • BC-4.2.2

        Banks should also ensure that each customer is in receipt of its current list of charges. The list should specify standard charges and commissions that will be applied by the bank to individual services and transactions and to specific areas of business.

        October 07

      • BC-4.2.3

        [This Paragraph was deleted in July 2012].

        Deleted: July 2012

    • BC-4.2 BC-4.2 Disclosure of charges

      • BC-4.2.1

        In order to improve customer awareness and enhance transparency of bank charging structures, full commercial banks should display, by notice in their banking halls (both head offices and branches), a list of current charges.

      • BC-4.2.2

        Banks should also ensure that each customer is in receipt of its current list of charges. The list should specify standard charges and commissions that will be applied by the bank to individual services and transactions and to specific areas of business.

    • BC-4.3 BC-4.3 Accounts held for clubs and societies in Bahrain

      • BC-4.3.1

        All clubs and societies registered with the General Organisation for Youth and Sports (GOYS), are permitted under GOYS rule to only have one account with FCBs in Bahrain.

      • BC-4.3.2

        The FCB is requested to notify GOYS when any club or society registered with GOYS requests the opening of an account with the bank. The purpose of the notification is to obtain clarification whether or not the account in question can be opened in accordance with the rules of GOYS.

      • BC-4.3.3

        For accounts already held with the FCBs for clubs and societies registered with GOYS (i.e. before the application of the regulation in this section), the bank is requested to provide details of such accounts to GOYS (by reference to account name, relevant society, date opened and type of account) as soon as possible. If appropriate, GOYS will contact the relevant club or society in writing (with a copy to the bank) with instructions (e.g. to close the account) regarding such account.

    • BC-4.4 BC-4.4 Current accounts

      • BC-4.4.1

        FCBs levying fees on their low-balance customer current accounts, are required by the Agency to apply such fees to average balances when these fall below a prescribed level during a specified period.

      • BC-4.4.2

        In order to prevent incidences of returned cheques due to maintenance of low-balance current accounts, the banks may convert some low-balance and/or inactive current accounts to savings accounts.

    • BC-4.5 BC-4.5 Brokerage fee

      • BC-4.5.1

        The purpose of the contents of this section is to set out the new scale of brokerage fees effective for all banks in Bahrain.

      • BC-4.5.2

        The new scale of fees is the result of discussion and consultation between The Bankers' Society and the Bahrain Money Brokers.

    • BC-4.6 BC-4.6 Notification to the Agency on introduction of new or expanded customer products and facilities

      • BC-4.6.1

        The content of this section is applicable only to full commercial banks licensed by the Agency.

      • BC-4.6.2

        All institutions referred to under paragraph BC-4.6.1 are required to consult the Agency before the introduction of any new or expanded customer products and facilities. The Agency will respond to the concerned bank within one week of receipt of the notification if it has any observations on the new product.

      • BC-4.6.3

        Further, institutions should also advise the Agency, on a six-monthly basis, on the status of new or expanded products and facilities. The advise should cover the following aspects:

        (a) response to,
        (b) success of, and
        (c) difficulties in,

        the introduction of new or expanded products and facilities. The institution should also advise the Agency on any variances which are introduced to the terms and conditions applying to these products and facilities.

    • BC-4.7 BC-4.7 Procedures for inheritance of financial assets

      • BC-4.7.1

        The content of this section is applicable to all full commercial banks licensed by the Agency in the Kingdom of Bahrain.

      • BC-4.7.2

        The Agency requires all commercial banks to follow the undermentioned procedures regarding the distribution of the financial assets of a deceased customer.

        (a) Legal ownership of financial assets should only pass after sight of, and in accordance with, the relevant documentation issued by the Ministry of Justice (known as the "statutory portion").
        (b) Distribution of assets should be made to the order of an individual named in, and in accordance with, a mandate, duly certified by the Ministry of Justice, that reflects the permission of all inheritors that the named individual may act on their collective behalf.
        (c) Where minors are inheritors, the Ministry of Justice documentation must specifically refer to their inheritance and the instruction followed absolutely.

    • BC-4.17 BC-4.17 Blocking Customer Accounts

      • BC-4.17.1

        Islamic retail bank licensees must not block the accounts of a customer (who has a financing arrangement with it) due to customer’s termination from his or her employment or retirement regardless of the bank’s contractual rights to take such action. Banks instead must agree on other arrangements with the customer for the repayment of the financing.

        Added: April 2020