Circulars/Notifications - Exchange Policy Department  
 EPD Circular Letter No. 10 of 2007

May 21, 2007 


The Head/Principal Offices of all
Authorized Dealers in Foreign Exchange
Dear Sirs/ Madam,

Rate of Return on Foreign Currency Deposits Raised Under FE-25 of 1998

Attention of Authorized Dealers is invited to Paragraph 6(ii), Chapter VI, FEM-2002, in terms of which Authorized Dealers are free to decide the rate of return offered on such FE-25 deposits provided the maximum rate of return does not exceed LIBOR applicable on the date of determination of such return/profit.

It is clarified that in terms of Prudential Regulation for Corporate/Commercial Banking No. O-5, banks have been allowed to freely decide the rate of return on deposits mobilized under FE-25 without placing any cap. Accordingly, the Paragraph 6(ii), Chapter VI, FEM-2002 may be read amended as below:

“(ii) Authorized Dealers are free to decide the rate of return offered on such deposits”

 


Yours faithfully,

Sd/-

(Muhammad Akmal)
Joint Director

       
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