Are Muslim banks not allowed to charge service fees?

Answer

While the banks may charge a reasonable service fee for handling money, the whole banking system is a corrupt riba system. They are allowed by the Shariah to charge service fees only if they keep the deposits of clients in trust in safe-boxes, without ploughing the funds into business ventures. They may then charge fees for the labour involved in safe-keeping the funds.

But these riba banks do not observe this rule of the Shariah. The funds are regarded as Qardh (loans given to the bank). The bank invests these funds in business deals to gain profit. It is haraam to charge clients who give the bank Qardh. In reality they should not be charging fees because they make use of the money of account-holders. They invest most of the funds in interest ventures thereby earning millions of rands. Thus the bank's entire service fee structure is haraam.