The Bank of Khyber (BoK) has decided to launch a new profit scheme for its long-term depositors to strengthen private sector deposits and pass on the profit of rising trend to its customers. The scheme called Regular Amdani Scheme (RAS) would be launched shortly.
According to sources in the financial institution, under the new scheme deposits in multiples of Rs 1000/- will be accepted for a term of five years.
The rate of profit would progressively increase from 7.25 percent per month for the first six months to 11.13 percent for the last six months. This would give the depositors an overall cumulative rate of 9.27 percent provided the deposit is kept for full 60 months.
"Under the scheme, pre-mature withdrawals of deposits will be permitted without penalties, before six months without any profit, between six to 12 months at PLS rate and after 12 months at rates as per schedule but no profit for broken period of less than six months," sources disclosed.
The expected profit will be payable at six monthly rests at as per schedule.
Minimum deposit required for individuals is Rs 100,000/- and Rs 1,000,000/- for corporate clients. "The withholding tax and Zakat will be applied as relevant laws," the sources added. Similarly, finance will be allowed against these certificates as per bank's relevant rules for advance against deposits.
The scheme would be governed under the existing terms and conditions applicable to regular-term deposits and TDR certificate stationery will be used for it. Accounts under this scheme will be opened on the same account opening forms as being used for Term Deposits.
In this connection, the sources said that all branches of the BoK have been advised to maintain separate record for accounts under this scheme for easy reference, wherein all relevant particulars e.g. Receipt No, date of deposit, customer's name, principal amount, date of maturity, date and amount of profit paid, withholding tax, Zakat deducted, corresponding PLS SB/CD account number of the RAS holder shall be recorded.
Under the scheme, every person desirous of investment in RAS would be required to open a PLS or CD account of his/her choice for the purpose of crediting profit amount.
For procedure all branches have been advised to allocate a separate block of the existing TDR for issuance of receipt under 'RAS', which shall be stamped as "Regular Amdani Scheme" on top before it is issued. In addition to the printed number the receipt will carry a serial number, in sequence of issuance with the word RAS at each branch, e.g. Ras-001 etc for purpose of distinction.
The deposits received under RAS would be reflected separately in the daily statement of affairs as Regular Amdani Scheme by the branches. For accommodation of the new scheme in the bank the management had already advised the I.T. Department to amend the existing software package.
When Business Recorder contacted, Managing Director BoK Qazi Munir-ul-Haq, he confirmed that the bank has decided to launch Regular Amdani Scheme. He said that efforts have been made to make the scheme attractive so as to generate substantial amount of private deposits.
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