No MDR on individual deposits above Rs10m
The State Bank of Pakistan has exempted individual savings deposits up to Rs10 million from the Minimum Deposit Rate floor to encourage retail investment in the new 'InvestPak' digital platform. Analysts expect this move to have a neutral to slightly positive impact on banks while keeping liquidity within the system.
Why it matters
This regulatory change is designed to mobilize retail capital into government securities, providing the state with a new funding source while maintaining banking sector stability.
comments Join our Whatsapp Channel Add Dawn as a trusted source KARACHI: The State Bank of Pakistan (SBP) on Tuesday relaxed the condition of application of the Minimum Deposit Rate (MDR) floor to individual saving deposits that maintain an average monthly balance of up to Rs10 million, effective from Aug 1, in order to encourage more investment in government securities through InvestPak.
The article relies on official regulatory announcements and financial analyst reports to explain the policy change.
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