SBP Announces Branchless Banking Regulations to Ensure Customer Protection

By keeping in mind the security of customers and risk management of banks, the State Bank of Pakistan (SBP) announced branchless banking regulations. SBP Announces Branchless Banking Regulations to Ensure Customer Protection. It will permit the financial institutions to set the transactions limit.

SBP Announces Branchless Banking Regulations to Ensure Customer Protection

“The regulations have been implemented as part of the broader strategy to create enabling regulatory environment to promote bank-led model of branchless banking,”

the SBP said.

“These regulations are applicable to financial institutions, including commercial banks, Islamic banks and microfinance banks desirous to undertake branchless banking.”

The central bank said that without the help of telecom companies, technology service providers and agents, financial institutions cannot take on branchless banking. A month ago the central bank issued the framework for the branchless banking.

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The SBP said branchless banking can be done with telecom companies, fuel distribution companies, Pakistan Post, chain stores and using technologies not limited to mobile phone, 3G/4G spectrum, general packet radio service and point of sale and internet banking terminals.

Banks have been directed to undertake risk-based due diligence.

“The financial institutions can issue personalised ATM/debit cards to their branchless banking customers subject to the condition that such cards shall be used for domestic transactions only,”

it said.

The regulations categorized branchless accounts into three levels.

• The transaction limit for the first two levels has been set at Rs 25,000 and Rs 50,000 per day and Rs40,000 and Rs80,000 per month, respectively.
• For the third level the banks have been authorized to set the transaction limit and monitor activities of such accounts.

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