The Presidents/Chief Executives
All Conventional Banks having Islamic Banking Branches and
Microfinance Banks having Islamic Operations


Dear Sir/Madam,

Facilitation in conversion of conventional banking branches into Islamic banking branches

           Please refer to IBD Circular No. 2 of 2010 wherein SBP issued the criteria for conversion of conventional banking branches into Islamic banking branches.

2.        In order to facilitate banks and streamline the process for conversion of their conventional branches, SBP has decided to revamp the existing criteria covering the following areas:

• Disclosures for conversion of accounts
• Use of digital channels/means for seeking consent from customers for conversion
• Conversion of current accounts from conventional to Islamic after exhausting all measures for seeking customers’ consent
• Flexibility in conversion process by allowing permission to establish virtual conventional cost centre(s)
• Flexibility in safekeeping of securities/collaterals during phase out of conventional portfolio
• Facilitation in reporting line
  

3.       Accordingly, the updated criteria are enclosed herewith as Annexure-I, which shall be applicable with immediate effect.

Encl. Annexure-I