Paper-based submission of FX related cases to discontinue by June 30: SBP

In a bid to further extend the digitalization drive, the State Bank of Pakistan (SBP) encouraged Authorised Dealers (Ads) to develop their own portals to connect their customers.

As per details, for the purpose, ADs were advised to provide an online platform to their customers to submit the Foreign Exchange (FX) cases digitally, thus abolishing paper-based case submission.

This will enhance operational efficiency and transparency, promote ease of doing business and make case submission cost effective and environment friendly.

Against this backdrop, 21 ADs have already developed their portals, started onboarding their customers and receiving FX cases digitally, while the rest are in process of developing their digital platforms/ portals.

In the first leg of its end-to-end digitalization drive, SBP launched an online platform - Regulatory Approval System (RAS) to facilitate banks in online submission of foreign exchange related cases to the Exchange Policy Department (EPD) of SBP and the Foreign Exchange Operations Department (FEOD) of the SBP Banking Service Corporation (SBP BSC). The SBP-RAS has been operational since March 24, 2020 whereby banks are submitting their cases online to FEOD and manual case submission has been discontinued. Later on, paper based case submission to EPD by banks was also discontinued with effect from August 28, 2020.

Going forward, SBP is envisaging that paper-based submission of FX-related cases to ADs by their customers would be discontinued. Accordingly, all ADs are advised to complete the development of portals, onboard and educate their customers, and take all necessary measures, with immediate effect, to discontinue paper-based submission of FX-related cases to them by their clients latest by June 30, 2021.

Furthermore, in order to address legal, technology, and other risks arising due to the use of digital media, ADs must make comprehensive mitigation arrangements and institute effective contingency plans to ensure operational continuity in case of any disruption in their portals’ service.

ADs are also advised to bring the abovementioned instructions to the knowledge of all their constituents and ensure meticulous compliance of the same. In case of failure, the relevant AD’s may not be able to provide all the foreign exchange-related services to their customers resulting in reputational risk and business loss for the concerned ADs besides exposing them to regulatory action under the applicable laws.