Please refer to BPRD Circular No. 01 dated April 13, 2012, BPRD Circular No. 01 dated March 15, 2013 and DMMD Circular No. 19 dated September 13, 2013.

2. In this regard, it has been decided to make following modifications regarding the payment of minimum rate of return on deposits raised by the banks:-

i. With effect from October 01, 2013, the Minimum Profit Rate to be paid on all Pak Rupee Saving Deposits, as defined in the above mentioned Circulars, will be 50 basis points below the prevailing SBP Repo Rate (Interest Rate Corridor - Floor).

ii. Change in the Minimum Profit Rate, following any change in the SBP Repo Rate, will be applicable with effect from 1st day of the subsequent month.

iii. It is further clarified that this rate of profit will be applicable on average monthly balances on all existing and new saving deposits including term deposits.

iv. Other instructions on the subject shall remain the same. Any violation of the above instructions will render the bank liable for punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.

3. Payment of profit on saving deposits raised by Islamic Banks including Islamic banking branches/windows would continue to be governed under the instructions notified vide IBD Circular No. 03 dated November 19, 2012.

Please acknowledge receipt.