The State Bank of Pakistan has introduced major regulatory changes that may affect people keeping large amounts in bank savings accounts. The move is expected to benefit banks while encouraging big investors to explore other investment options.
The SBP has issued a circular informing banks and consumers about important changes linked to savings account returns and the new Invest Pak Digital scheme.
The changes are especially relevant for account holders who maintain large balances in savings accounts.
Under the new rules, banks will no longer be required to provide guaranteed returns on savings accounts with balances of more than Rs10 million.
This means keeping large sums in savings accounts may no longer be as beneficial as before for high-value depositors.
However, the State Bank clarified that banks remain bound to provide a minimum rate of return on savings accounts with balances below Rs1 million.
Banks expected to benefit from decision
Banking experts say the regulatory change will reduce the cost of banks and increase their overall profits.
They believe people holding large amounts in banks may face lower returns, while banks could benefit from greater flexibility in managing deposit costs.
Experts say the move could push money out of traditional bank deposits and into the stock market, government securities, and other investment avenues.
They believe large depositors may now look for better returns outside regular savings accounts.
Direct access to Invest Pak Digital
The State Bank has also allowed large investors to invest directly through Invest Pak Digital. Under the scheme, investors can bypass banks and directly invest their money in government securities.
Experts say investors may receive attractive returns by lending directly to the government through Invest Pak Digital.
