July 1, 2003	Tuesday	Rabi-us-Sani 30, 1424

KARACHI, June 30: The State Bank has asked all banks and DFIs to report to the CBR after every six months the profit or return paid to their clients if it exceeds Rs10,000.

A circular (BPD no 22) issued by the SBP says that all banks and DFIs — development finance institutions — will inform the Central Board of Revenue about (i) the name of the account (ii) address (iii) National Identity Card or National Tax Number; and (iv) the amount of profit or return paid by them.

Senior bankers said the move had been to meet a key demand of the IMF that believed that it could help CBR generate more taxes.

The circular says that the banks/DFIs will provide the above mentioned information on the basis of actual payments made to an account holder or depositor. It says the banks/DFIs will provide information in respect of profit/return to be declared and paid for the period ending June 30, 2003, by September 30, 2003, and thereafter within 60 days after the end of the reporting half-year.

In case of joint account, banks/DFIs will provide the details only for the lead name in the account.

Head offices of the banks/DFIs will provide hard copies of above data in consolidated form directly to the CBR at Islamabad.

The information in respect of non-remunerative accounts or the accounts on which no profit or return is paid will not be provided.

“The information provided by the banks/DFIs under the above arrangement shall be absolute and final. Officials of the CBR will not ask for any further information from the banks/DFIs directly or indirectly,” says the SBP circular.