KARACHI: After the surge in policy rate, the State Bank of Pakistan (SBP) Monday announced increase in the minimum profit rate on the saving accounts.

The Monetary Policy Committee (MPC) of the SBP Friday raised the key policy rate by 150 basis points to 8.75 percent to mitigate the risks related to inflation and external account.

Accordingly, the SBP has asked banks to increase the profit rate on saving accounts in line with a surge in key policy rate.

“As per SBP regulation for bank customers, the profit rate on savings accounts should rise by 1.5 percent to a minimum profit rate of 7.25 percent by 1 Dec 2021 at the latest,” the SBP tweeted.

Monetary policy: SBP raises key interest rate by 150 basis points, takes it to 8.75%

The SBP has also asked banks’ customers to approach the customer complaints department of the SBP if their bank is not providing the minimum profit rate of return on the savings account. “If your {customer} bank gives you less profit on your savings account, file a complaint with your bank and if not resolved then contact the SBP customer complaints.

Starting from Jan 2022, the SBP has made it mandatory for banks to provide the option to open bank accounts digitally with remote biometric and without the need for a customer to visit a bank branch.

The State Bank in September this year has devised a comprehensive Customers Digital Onboarding Framework, which will facilitate banks and Microfinance Banks (MFBs) to conveniently and remotely open bank accounts of resident Pakistanis by using digital channels including websites/portal, mobile applications, digital kiosks etc.

Under this framework, the account opening process has become swift and simplified while ensuring compliance with the applicable regulatory requirements and international standards. For “Customer Due Diligence,” the SBP advised the banks/MFBs to utilize available technological and other resources for customer identification and verification.

Copyright Business Recorder, 2021