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Reporting of return on deposits; government to review State Bank decision

KARACHI (July 15 2003) : The government will review the recent decision of State Bank of Pakistan, which requires banks to report to the Central Board of Revenue the name and address of a person who earns in excess of Rs 10,000 per annum on bank deposits.

The SBP, in a circular issued in the first week of this month, directed all banks and DFIs (Development Finance Institutions) to provide information to CBR on biannual basis, in respect of those accounts where banks and DFIs pay any profit or return in excess of Rs 10,000 per annum or on the deposits maintained with the bank or DFIs.

Finance Minister Shaukat Aziz indicated on Monday during a visit to Business Recorder, that the decision for reporting the earnings in excess of Rs 10,000 would be reviewed and the ceiling would be raised.

The SBP circular had created uneasiness among the banks and account holders who were surprised why a meagre amount of Rs 10,000 would be reported to CBR.

According to the SBP circular all banks will provide information regarding the name of account holder, address of account holder, his NIC/NTN number and amount of profit or return paid.

Bankers were of the opinion that the CBR might have planned to net small depositors through this circular.

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