MICROCAPITAL BRIEF: CGAP Reports State Bank of Pakistan (SBP) Removing Regulatory Barriers to Branchless Banking

CGAP (Consultative Group to Assist the Poor) reports that the State Bank of Pakistan (SBP), the nation's central banking authority, recently announced modifications to its branchless banking regulations that include: removal of the requirement to have one's fingerprint scanned to open an account; increases in transaction limits and the elimination of the maximum balance; and introduction of “Level 0” accounts that can be opened electronically, without physical paperwork. CGAP quotes Mr Mansoor Hassan Siddiqui, the Director of the Banking Policy and Regulations Department at SBP, as stating that “the purpose of these regulations and the recent amendments was to help expand the outreach of the banking channels so that the financially excluded population can have easy access to formal financial services.” The branchless-banking regulations were introduced in 2008 in order to encourage.... Continue reading here. Contact MicroCapital to receive a complete sample issue of the MicroCapital Monitor, the monthly microfinance newspaper.