The State Bank of Pakistan (SBP) has amended the existing Branchless Banking Regulations for Financial Institutions (FIs), which include commercial, Islamic and microfinance banks for expanding the outreach of branchless banking operations in the country.

These amendments in the Regulations shall be immediately applicable to all potential FIs. Financial Institutions which have already been allowed to offer branchless banking services have been advised to streamline their existing operations/processes as per amended Regulations within six months, and report compliance to SBP, according to BPRD.

According to these amendments, SBP has introduced Level ‘0’ Branch less Banking (BB) Accounts to bring the low income earning segment of society into financial services loop. With the introduction of Level ‘0’ BB Accounts, now, instead of sending the physical Account Opening form and copy of customer’s CNIC to the Financial Institution (FI) for further processing, the branch less banking agents have been allowed to send the Digital Account Opening form, customer’s digital photo and an image of customer’s CNIC to the FI electronically.

The new category of Level ‘0’ BB Account will provide flexibility to the Agent and the Financial Institution (FI) for opening of basic BB accounts while rationalizing the ‘Know Your Customer (KYC)’ requirements in line with the transaction limits.

The following transaction and maximum balance limits on Level “0” Accounts shall be applicable: Daily Limit Rs. 15,000, Monthly Limit Rs. 25,000, Annual Limit Rs. 120,000 and Maximum Balance Limit Rs. 100,000.

Similarly, the transaction limits of Level 1 Branchless Banking Accounts have been reasonably increased to cater to the needs of the customers by rationalizing the Know Your Customer (KYC) requirements. Now, all services permissible under existing Branchless Banking Regulations shall be available to Level “1” account holders.

The transaction and maximum balance limits applicable to Level “1” Accounts will be: Daily Limit Rs. 25,000 (previous limit was Rs 10,000), Monthly Limit Rs. 60,000 (previous limit was Rs 20,000) and Annual Limit Rs.500,000 (previous limit was Rs. 120,000). There will be no Maximum Balance Limit, according to the amendments.