Please
refer to para v of BPRD Circular No.29 dated 13th
July, 1999 wherein the banks/NBFIs were allowed to develop
and expand their deposit mobilization efforts based on explicitly
stated expected rates of return and provision of additional
and more efficient financial services to the depositors.
2.
It has come to the notice of the State Bank that some
banks are initially offering a higher rate of return on long
terms deposits i.e on Term Deposit of different maturities
etc. However, with the increase in the cost of the funds,
resulting in the decrease in profitability in due course of
time, rates of profit on these deposits are also lowered.
This has generated a series of complaints from the depositors
wherein SBP is dragged into unnecessary correspondence.
3.
In order to avoid any misconception and possible dispute
with the investors/depositors, the banks are advised to clearly
indicate, while mobilizing deposits, that the same are on
profit & loss sharing basis and that the rates on such
deposits are not final and subject to changes under the said
system. In case, the depositor does not agree with the revised
rate, due to any downward change in the rate of return declared
periodically by the bank, he may be allowed to withdraw the
deposit after adjustment of extra mark up paid as per schedule
of the bank, without further deduction of any penalty.
4.
Please acknowledge receipt.
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