{"id":7075,"date":"2026-06-17T12:02:40","date_gmt":"2026-06-17T07:02:40","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=7075"},"modified":"2026-06-17T12:02:40","modified_gmt":"2026-06-17T07:02:40","slug":"sbp-eases-process-for-banks-shift-to-islamic-model","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=7075","title":{"rendered":"SBP Eases Process for Banks shift to Islamic Model"},"content":{"rendered":"

The State Bank of Pakistan<\/a> (SBP) has relaxed the process for converting conventional bank branches into Islamic banking branches by shortening the mandatory public notification period and reducing the interval between notices issued to current account holders.<\/p>\n

According to revised criteria issued by the central bank, the changes have taken immediate effect and are aimed at helping banks accelerate their transition towards Islamic banking operations<\/a>.<\/p>\n

The SBP stated that the amendments were introduced to further facilitate banks in converting their branches while addressing industry requirements and issues that emerged over time.<\/p>\n

Under the revised framework, the period for informing the general public and account holders about the conversion of conventional branches into Islamic branches has been reduced from three-and-a-half months to two months.<\/p>\n

\u201cThe banks will inform the general public and account holders about conversion of its respective conventional branches into Islamic at least two months before the conversion through publication of notices in leading newspapers (both in Urdu and English), display of notices in all branches and notices on the bank\u2019s website or through any other banking channel used by account holders,\u201d the SBP said.<\/p>\n

The central bank has also reduced the interval between two notices issued to current account holders regarding conversion on a deemed acceptance basis from 30 days to 15 days.<\/p>\n

Under the revised instructions, banks will now send notices to account holders at least twice, with a 15-day interval before the effective date of conversion. The notices must be issued in both English and Urdu languages.<\/p>\n

The SBP further said that the final notice regarding changes in terms and conditions, including cut-off dates for conversion of accounts on a deemed acceptance basis, must be provided at least 15 days before the conversion becomes effective.<\/p>\n

While the latest amendments have taken immediate effect, the SBP clarified that all other instructions related to branch conversion will remain unchanged.<\/p>\n

According to the criteria, banks are required to submit their Annual Branch Conversion Plan (ABCP), aligned with their overall conversion strategy, along with a request for in-principle approval to convert conventional branches into Islamic branches. The proposal must be submitted to the Banking Policy & Regulations Department (BPRD), with a copy to the Islamic Finance Policy Department (IFPD), by October 31 each year.<\/p>\n

In addition to the ABCP, banks may also approach the SBP for approval to convert conventional branches on a case-to-case basis at any time.<\/p>\n

All conventional banks with existing Islamic banking operations, or those intending to launch Islamic banking services, will be eligible to apply for conversion of their conventional branches into Islamic branches. However, no licensing fee will be charged for such conversions.<\/p>\n","protected":false},"excerpt":{"rendered":"

The State Bank of Pakistan (SBP) has relaxed the process for converting conventional bank branches into Islamic banking branches by shortening the mandatory public notification period and reducing the interval between notices issued to current account holders. According to revised criteria issued by the central bank, the changes have taken immediate effect and are aimed […]<\/p>\n","protected":false},"author":1,"featured_media":7076,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1299],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t