LAHORE: Roshan Digital Account (RDA), an initiative of the State Bank of Pakistan (SBP), has started gaining popularity among non-resident Pakistanis (NRPs). So far over 50,000 digital accounts have been opened by the NRPs back in their homeland.
An official of the central bank highlighted that RDA has established considerable traction among NRPs for transfer remittance, investment, and other financial needs. The SBP has reported that overall inward remittances into the popular account have reached $154.6m touching a record $11.2m in a single day. It is an initiative, launched in collaboration with leading commercial banks to discourage the insecure and informal system of fund transfer – hundi/hawala - by offering innovative banking solutions for millions of NRPs seeking to undertake banking, payment, and investment activities in Pakistan which will help promote economic activity inside the country, he added.
A senior banker from MCB Bank, Umer Sheikh, Head of Products-Retail Banking Group, pointed out that this is the first time in the country’s history that NRPs are being provided an opportunity to remotely open an account in Pakistan through an entirely digital and online process without any need to visit a bank branch. Furthermore, opening the account requires only a basic set of documents. In addition, the central bank has directed all partner banks to complete all necessary customer due diligence within 48 hours. He highlighted that the SBP in close partnership with the commercial banking sector has built a strong platform to facilitate and ensure faster, cheaper, convenient, and efficient remittances into the country. The initiative aims to simultaneously address two major objectives: to boost the volume of inward remittances and reduce the use of informal channels. The latter is a particular focus for the SBP looking to integrate Pakistan better within the global economy.
He underlined that this digital account initiative allows NRPs to bank safely and efficiently in their homeland. Through this platform, Pakistanis around the globe can open and operate a digital account without having to visit Pakistan.
It was also indicated that the RDA allows expatriates to utilize a unique investment opportunity for their savings in the form of Naya Pakistan Certificates (NPC) for both Pakistan rupee and US dollar denomination with a Shariah-compliant version also available.
Highlighting the benefits of the NPCs, he pointed out that these certificates are issued by the government of Pakistan offering very attractive risk-free rates and up to 7 percent for USD denominated certificates.
At a time when interest rates in Western Europe and the US are historically low, this only adds to the attractiveness of the offering, he underscored.
Copyright Business Recorder, 2020