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030423
STATE BANK OF PAKISTAN BANKING SUPERVISION DEPARTMENT KARACHI
BSD Circular Letter
No.7
April 23, 2003
The Presidents/Chief Executives
All Banks/ DFIs
Dear Sirs/Madam,
Cash Reserve Requirement for Deposits raised under FE Circular 25 of 1998
Please refer to our BSD
Circular No.18 dated 31st March, 2001 on the captioned subject.
In order to streamline / rationalize the rate of penalty in respect of default
in meeting reserve requirement against FE-25 deposits, it has been decided that
penalty scale prescribed in Prudential Regulation-XXV for Rupee cash reserve
requirement will henceforth be applied on defaults in FE-25 deposit reserve
requirements i.e. 5% Cash Reserve Account (CRA) and 15% Special Cash Reserve
Account (SCRA), after converting into rupees.
Accordingly, the amount of default in US$ of 5% CRA and 15% SCRA of FE-25
deposits will be converted into PKR at the SBP mid-rate on the date of default
and penalty will be calculated at scale of Rs.69 per Rs.100,000/- or part
thereof and will be recovered from the defaulting bank.
Please acknowledge receipt.
Yours faithfully,
(JAMEEL AHMAD)
Director