Govt permits state-run entities to deposit 50pc funds in pvt banks

21 January, 2020 12:00 AM printer

The government has allowed the autonomous, semi-autonomous and state-owned entities to deposit up to 50 percent of their surplus funds in private banks and non-bank financial institutions.

The Financial Institutions Division under the Ministry of Finance has issued a circular saying that the decision will help commercial banks lower lending rates to a single digit as well as boost investment, create more employments and maintain continued economic growth, reports BSS.

The autonomous, semi-autonomous and state-owned companies will receive a maximum interest rate of 6 percent on deposits in the private banks.

On the other hand, the companies will receive 5.5 percent interest rate on deposits in the state-owned banks.