Banking rules: SBP issues directives to banks

The minimum rate of return on average monthly balances will be applicable on all new and existing savings products

KARACHI:
The State Bank of Pakistan (SBP) has issued instructions to all commercial banks that effective from June 1, the minimum rate of return on average monthly balances will be applicable on all new and existing savings products, including any other profit-bearing deposits with no fixed maturity, except term deposits. The expected rate of profit on term deposits is now governed as per the agreement between the bank and the depositor at the time of placement of the deposits.


Published in The Express Tribune, May 28th, 2014.

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