The State Bank has barred banks and DFIs from mentioning the expected rate of return, either on the account opening form or on the deposit certificate or instrument itself. The SBP issued a circular on Tuesday which said that customers had lodged complains that they were not being paid the expected profit as mentioned in the account opening forms.
"It has come to the notice of SBP that the banks and DFIs are indicating the expected rate of return in the account opening forms and in the deposit certificates or instruments etc which they are unable to pay to their customers and account holders," said the circular.
As a result, the dissatisfied customers lodge complaints with the State Bank for intervening in the matter and arranging payment of profit at the expected rate of return.
In order to avoid any confusion it is clarified that while banks and DFIs may continue advertising their products including the indicative expected rate of return they will not mention, in future, the expected rate of return either on the account opening form or on the deposit certificate or instrument itself, the circular said.
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