State Bank of Pakistan unveils new rules to simplify account opening

The State Bank of Pakistan (SBP) has introduced a comprehensive new framework aimed at simplifying the account opening process for both individuals and businesses.

The central bank has directed banks and regulated entities to offer digital payment acceptance solutions to all merchants operating either in-store or online.

According to the newly issued customer onboarding framework, the objective is to standardize and streamline account opening procedures while making documentation requirements more reasonable.

The framework encourages the use of digital and user-friendly interfaces across various customer touchpoints.

The SBP has instructed banks to ensure that new individual accounts are opened within two business days. Additionally, customers must be given tools to track the status of their account applications, thereby improving transparency and user experience.

These measures are part of SBP’s ongoing efforts to enhance financial inclusion and make banking more accessible.

In recent years, the central bank has introduced several initiatives such as branchless banking accounts, Asaan Accounts, and digital onboarding for freelancers, remittance receivers, and overseas Pakistanis.

Furthermore, to facilitate digital payment acceptance among merchants, SBP has mandated that all merchants—new and existing—be equipped with at least one digital payment method. This could include Raast QR codes, Point of Sale (POS) machines, or e-commerce checkout solutions.

The goal is to make digital transactions easier for customers making in-store or online purchases.

To further support small businesses, SBP has recommended that regulated institutions categorize merchants as micro, small, or registered to offer appropriate and cost-effective digital payment options. This segmentation is expected to ease the onboarding of smaller traders and broaden the reach of digital financial services.