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Sometimes, but it depends on the country, the bank, your account type and how you respond to the bank’s notice. No universal rule says you can keep the account as it is, and none says it will be converted automatically. The clearest published rules are Pakistan’s. Under State Bank of Pakistan (SBP) criteria, a customer who objects to conversion may be offered a transfer to another conventional branch, or closure of the account. Your conventional account would not necessarily stay at the converting branch.
What happens under Pakistan’s branch-conversion rules
The SBP issued its branch-conversion criteria in October 2024. They cover what banks must disclose to customers, how consent is sought (including digital means), when certain current accounts can be converted on a deemed-acceptance basis, and how the conventional portfolio is handled during the transition. These are Pakistani regulatory instructions. They do not apply to banks in other countries.
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What happens to your account depends on how you respond.
| Your response | Account type | Treatment under the SBP annex |
|---|---|---|
| You consent | Any | The account may be converted from conventional to Islamic. |
| You dissent | Any | The bank may allow the account to be transferred to another conventional branch, or closed, according to your choice. |
| No response | Current account | May be converted on a deemed-acceptance basis, after the specified notices have been given. |
| No response | Savings or fixed account | Parked in a virtual conventional cost centre, or transferred to the nearest conventional branch, with notice to you. |
Silence therefore does not mean the same thing for every account. For a current account it can lead to conversion. For a savings or fixed account it leads to the account staying conventional, but possibly moved or held in a virtual cost centre, with you informed. If you want to remain conventional, reply in writing, or through whatever channel the notice names, rather than waiting.
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The June 2026 change to notice periods
SBP IFPD Circular Letter No. 3 of 2026, dated June 16, 2026, shortened two periods in that process:
- The period for informing the public and account holders fell from three and a half months to two months.
- The interval between the two notices used for deemed acceptance of current-account conversion fell from 30 days to 15 days.
In practice you may have less time to respond than older guidance suggests. Read the dates on your own notice and do not rely on figures from articles written before the amendment.
Why the country matters
Other jurisdictions handle Islamic transitions differently, and what a customer chooses between can differ too. Bank Negara Malaysia’s 2014 transition policy under the Islamic Financial Services Act dealt with a different issue: whether Islamic customer funds counted as deposits or investment accounts. The central bank said institutions would explain the differences and let customers choose between keeping Islamic deposits and moving to investment accounts. That was a one-off reclassification more than a decade ago. It is not a current rule, and it is not a branch-conversion right. It does show that an Islamic account can carry different product terms from the conventional one it replaces, so it is worth reading the terms before consenting.
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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →If you are outside Pakistan, the SBP table above does not tell you your rights. Your bank’s notice and your national regulator’s rules do.
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What to ask your bank
- Is my specific account being converted, transferred to another conventional branch, or closed?
- What is the response deadline, and what happens if I do not reply?
- Does the process differ for my current, savings or fixed account?
- If I decline, which conventional branch will hold the account, and how do I request the transfer?
- What happens to my account number, card, standing instructions, direct debits, linked financing and digital banking access?
- If the account becomes Islamic, which contract and profit or return terms apply, and where are they published?
- Which regulator governs my account, and where do I complain if the notice does not explain my options?
What the public rules do not settle
The regulatory material does not say whether your account number, debit card, direct debits, financing or app access will change. Those depend on the bank, so get them confirmed in writing and do not assume continuity. A transfer to another branch may also change where you do your day-to-day banking, so check how far away that branch is and whether it supports the services you use.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A practical sequence
- Find the conversion notice, whether by letter, SMS, email or app message, and note the deadline.
- Identify your account type: current, savings or fixed. It decides what silence means in Pakistan.
- Decide whether to consent, transfer or close. Neither choice is presented by the regulator as better than the other; it is a personal and financial decision.
- Reply through the channel the bank specifies and keep proof of the date.
- Before the deadline, move any scheduled payments or salary credits you cannot afford to have disrupted.
- If the notice leaves your options unclear, ask the bank to clarify in writing and, if needed, complain to your national banking regulator.
Banks sometimes ask for consent to convert a specific account, as Bank of Punjab’s consent request does. Always check the terms currently on offer from the bank itself before relying on any summary, including this one.
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