KARACHI: State Bank of Pakistan has devised a comprehensive ‘Customers’ Digital Onboarding Framework’, which would facilitate banks and Microfinance Banks to remotely open bank accounts through digital channels including websites, portal, mobile applications, digital kiosks etc.
The framework was established after the success of Roshan Digital Account initiative, said a SBP statement on Wednesday. .
With the rapid growth in adoption of electronic banking channels, especially amid the COVID-19 pandemic, the demand from bank and customers for digital financial transactions have increased manifold.
Under this framework, account opening process has become swift and simplified while ensuring compliance with the applicable regulatory requirements and international standards.
The framework in general provided a convenient way for all segments of society to opening bank accounts, specifically enabling freelancers, self-employed or unemployed women, and recipient of remittances from abroad to open bank account digitally with minimum documentation requirements.
The initiative would also help achieve SBP’s financial inclusion objectives by bringing the excluded segments of the society in the formal banking sector. The framework had been finalized after carrying out an extensive consultation with stakeholders, to obtain opinion from industry experts and to proactively address the challenges, which banks/ MFBs might face during the implementation of the framework.
While typical accounts could be opened as either Savings or Current Account, the framework identified four categories on the basis of functional limits including deposit or withdrawal limits, fund transfer limits etc. and the documents required for opening an account.
These categories included ‘Asaan Digital Account’; ‘Asaan Digital Remittance Account’; ‘Freelancer Digital Account’; and the ‘Digital Account.’ The first category was the easiest to open requiring basic information and the least number of documents albeit with some limits on functionality.
The last category, i.e. Digital Account was without any functional restriction but needed more information for account opening.
A customer could start with the basic account and could upgrade over time to higher level of account type when required. A list of SBP required documents for each level of account was available at link https: //www.sbp.org.pk/bprd/2021/C2-Annex-A.pdf
SBP had instructed banks under this framework to ensure that decision to open or decline these accounts did not take more than two working days from the day of completion of all the requirements while ensuring availability of customer support services 24/7 for customer facilitation.
Moreover, banks/ MFBs would also be required to provide a tracking number to the applicant for following up on the status updates.
It merits to mention here that over the years, SBP has provided an enabling regulatory environment for its regulated entities to facilitate various customer segments.
SBP’s recent initiatives included introduction of National Payment System Strategy, instant payment system, Electronic Money Institutions and the introduction of Roshan Digital Accounts (RDAs) for Non-Resident Pakistanis.
SBP had advised the banking industry to implement the framework by December 31. SBP was confident that this initiative would help promote digitization of banking services in the country apart from achieving the financial inclusion objectives.
The framework would also provide a tool to the industry and an impetus to SBP’s initiative of Banking on Equality by bringing women into the financial system.
It was expected that the move would result in increased convenience for the customers to fulfil their financial needs through swift and secure digital financial infrastructure in Pakistan.
Customers could get further information through the link https: //www.sbp.org.pk/bprd/2021/C2.htm