The State Bank of Pakistan (SBP) has extended timeline for effective implementation of its guidelines vis-à-vis Low Risk Bank Accounts. Introducing Asaan Account, the SBP, on June 22, 2012, had issued guidelines on Low Risk Bank Accounts with simplified due diligence, asking banks to implement the same by July 31, 2015. However, on the request of banks, the SBP has extended the deadline by two months.
According to BPRD circular letter (No 24) of 2015, the guidelines on Asaan Account were issued to expand outreach of banking services to all segments of the society, especially the un-banked or the under-banked people, to achieve broader objectives of financial inclusion.
Banks, vide the aforesaid circular, were advised to implement the guidelines by upgrading their systems, controls and procedures to incorporate the requirements of Asaan Account latest by July 31, 2015. Banks, however, requested the SBP to extend the timeline for effective implementation of the guidelines concerning Asaan Account. On the representation of banks, it has been decided to extend the timeline till September 30, 2015. As a result of this extension, banks will now submit their first quarterly report as of December 31, 2015 by January 7, 2016.
Besides, various banks have also sought clarifications on different aspects of the guidelines. In order to facilitate banks for successful implementation of Asaan Account, the guidelines have been further clarified in the form of `Frequently Asked Questions'' with an emphasis that all other instructions on the subject would remain unchanged. The purpose of these guidelines was to open accounts under a simplified criteria and these accounts might be treated as low risk accounts. As per guidelines, these accounts shall be opened with a minimum amount of Rs 100 as initial deposit. However, there will be no minimum balance requirement on these accounts. Banks will only charge a reasonable and market competitive fee on providing banking services to Asaan account holders, but the charges/fee should be kept at minimum level as per SPB''s instructions regarding service charges and responsible pricing issued from time to time. Besides, banks will also be required to ensure that no service charges are recovered at the time of opening and closing of an account.
It may be pointed out that the Asaan Account is aimed at facilitating common people and is open to all low-income un-banked/under-banked masses as they usually face difficulties in opening bank accounts due to the requirements of opening a normal bank account. The Asaan Account will not be limited to only skilled/unskilled workforce, farmers, less educated/uneducated people, labourers/daily wagers, women/housewives, self-employed individuals, pensioners, young adult population, but to all segments of the society.