The State Bank of Pakistan has introduced major regulatory changes that could significantly affect customers keeping large amounts in bank savings accounts. The new measures are expected to reduce banks’ funding costs while encouraging high-value depositors to explore alternative investment options.
In a new circular issued to banks and consumers, the central bank announced important changes related to savings account profit rates and the Invest Pak Digital scheme.
Under the revised regulations, banks will no longer be required to provide guaranteed minimum returns on savings accounts with balances exceeding Rs10 million. As a result, individuals and businesses holding large deposits may receive lower returns than before, depending on their bank’s policies.
However, the SBP clarified that banks must continue offering the prescribed minimum rate of return on savings accounts with balances below Rs1 million, ensuring protection for small depositors.
Banking experts believe the regulatory change will reduce banks’ deposit costs and improve their profitability by giving them greater flexibility in setting returns for high-value accounts.
They also expect the move to encourage wealthy investors to shift funds from traditional savings accounts into alternative investment avenues such as the stock market, mutual funds, and government securities in search of higher returns.
In addition, the State Bank has expanded access to the Invest Pak Digital platform, allowing eligible investors to invest directly in government securities without going through commercial banks.
According to financial experts, the initiative offers investors a more direct way to lend money to the government while potentially earning competitive returns through government-backed investment instruments.
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