By Staff Reporter
KARACHI: The central bank will impose new rules from Friday requiring biometric verification as the primary method for opening and operating digital bank accounts and wallets, a move that could disrupt services for potentially tens of millions of customers who have yet to comply.
The State Bank of Pakistan (SBP) issued BPRD Circular No.1 of 2025 on July 25, mandating that all regulated entities, including banks, development finance institutions (DFIs), microfinance banks (MFBs), digital banks and electronic money institutions (EMIs), streamline the account opening and customer onboarding processes. The circular requires these institutions to “streamline the account opening/customer onboarding process and improve the customer experience,” according to the document.
Under the previous system, customers could open accounts using other verification methods and had up to 60 days to complete biometric checks before facing restrictions such as debit blocks. The new regulations, which take effect on Oct. 25, make biometric verification mandatory prior to establishing any relationship or opening accounts and wallets for customers holding Computerized National Identity Cards (CNIC), National Identity Cards for Overseas Pakistanis (NICOP), Pakistan Origin Cards (POC), Alien Registration Cards (ARC) or Pakistan Origin Registration (POR) cards.
Industry officials said the changes could affect a large number of account holders, with fears that tens of millions who have not completed biometric verification might lose the ability to operate their accounts. They also raised concerns that the rules may hinder individuals with foreign currency accounts from sending or receiving remittances.
The SBP gave financial institutions three months to comply with the requirements, which form part of broader customer due diligence and onboarding obligations under the central bank’s Anti-Money Laundering, Countering the Financing of Terrorism and Counter Proliferation Financing regulations.
The regulations expand on the “Consolidated Customer Onboarding Framework” introduced in July, which now covers both in-branch and remote onboarding processes. The framework applies to opening accounts and wallets for individuals and entities, including local currency and foreign currency accounts, and explicitly includes Roshan Digital Accounts.
It mandates a consolidated approach regardless of whether onboarding is done in person or remotely, and applies to all SBP-regulated entities, including banks, DFIs, MFBs, digital banks and EMIs. In contrast, the earlier framework from 2022 allowed the use of the National Database and Registration Authority’s (NADRA) Verisys for initial verification at account opening, with biometric verification required within 60 days.
Copyright © 2021 Independent Pakistan | All rights reserved
