Bank Deposit Profit Rules Revised In Pakistan

Islamabad: The government of Pakistan has revised the profit distribution rules for bank deposits, the State Bank said on Thursday. Under the updated guidelines, profit sharing on bank deposits will follow new criteria aimed at making returns fairer and more transparent for account holders.

According to the central bank, the new rules require that profit on deposits be calculated and distributed on a time‑weighted basis, meaning that the duration for which funds remain in an account will directly affect the amount of profit credited. This change is expected to benefit customers who maintain longer deposit durations, offering them increased earnings compared with previous methods.

Officials said that under the revised criteria, banks will no longer calculate profit simply on average balances; instead, they must use a time‑based calculation model to ensure a more equitable distribution of returns. The new system aims to discourage short‑term deposit cycling and encourage longer deposits.

The central bank emphasised that the changes are designed to increase fairness and transparency in the banking sector while protecting customer interests. Bank customers have been advised to consult their banks for details on how the revised profit rules may affect their specific accounts and expected returns.

Source: ARY News