The State Bank of Pakistan (SBP) has announced that it has revised branchless banking regulations for financial institutions including commercial, Islamic and microfinance banks for expanding the outreach of banking operations in the country.

“Financial institutions, which have already been allowed to offer branchless banking services, are advised to streamline their operations as per amended regulations within six months and report compliance to SBP,” said the central bank in a circular issued on Monday.
According to the amendments, the central bank has introduced Level ‘0’ branchless banking accounts to bring the low income-earning segment into financial services loop. Now, instead of sending a physical account opening form and copy of customer’s CNIC to the financial institution for processing, the branchless banking agents could send the digital account opening form, customer’s digital photo and an image of customer’s CNIC to the financial institution electronically.
The following transaction and maximum balance limits on Level ‘0’ accounts will be applicable: Daily limit Rs15,000, monthly limit Rs25,000, annual limit Rs120,000 and maximum balance limit Rs100,000.
Similarly, the transaction limits for Level 1 branchless banking accounts have been increased to cater to the needs of customers by rationalising the Know Your Customer (KYC) requirements. The transaction and maximum balance limits will be: Daily limit Rs25,000 (previous limit was Rs10,000), monthly limit Rs60,000 (previous limit was Rs20,000) and annual limit Rs500,000 (previous limit was Rs120,000). There will be no maximum balance limit, according to the amendments.
According to other salient features, all branchless banking account holders will be allowed to transfer up to Rs25,000 per month to non-account holders.