SBP launches 'Asaan Remittance Account'

With a view to promoting home remittances through legal channel and enhance the outreach of basic financial services to unbanked or underserved segment of the population, the State Bank of Pakistan (SBP) has launched "Asaan Remittance Account" for prospective beneficiaries of home remittances. The move will facilitate opening of bank accounts by low-risk customers to receive home remittances through proper accounts instead of resorting to traditional cash over the counter transactions.
However, this account will be fed through home remittances from abroad only and no local credit will be allowed in the account. Further, no commercial remittances will be deposited in the account. The "Asaan Remittance Account" has been launched in collaboration with Pakistan Remittance Initiative (PRI) to promote the use of bank accounts by home remittance recipients (beneficiaries). Accordingly, banks have been asked to open the account with a simplified procedure.
The objective of this initiative is to encourage opening of these accounts for receiving home remittances through proper accounts instead of traditional cash over the counter transactions. According to SBP, this category of limited mandate accounts is designed for beneficiaries of home remittances and will be fed with the proceeds of home remittances only. The prospective recipients and their family members (beneficiaries of home remittances) can open these accounts at banks branches or by bank's permanent staff/employee after visiting customers' places.
Only Individuals can open these accounts with a simple and one page account opening form (paper based/electronic form) in Pak Rupee with basic customer information. The customer due diligence and other controls specified for 'Asaan Account' that was earlier launched by SBP in 2015 shall be applicable for opening of Asaan Remittance Account.
In addition, the account opening form should have International Bank Account Number (IBAN) of the Asaan Remittance Account and names of prospective remitter(s) stating relationship with the account holder as well. A maximum credit balance limit of Rs 2.0 million, cash withdrawal limit of Rs 50,000 per day and fund transfer limit of Rs 50,000 per day has been set for these accounts.
The SBP has been actively pursuing the goal of financial inclusion in the country by expanding the outreach of banking services to all segments of society especially to the unbanked or under banked population.
The strategy helps to increase documentation of economy, create saving habits among the masses for returns/profits on their savings and generates opportunities to access credit and insurance facilities through the formal financial sector.
The SBP has also allowed Banks/MFBs to launch awareness campaign to sensitize general public about the benefits of this product ie security, issuance of Proceeds Realization Certificate (PRC), timely credit and complaint resolution. Banks/MFBs may also coordinate with overseas employment promoters to reach potential remittance niche for opening of these accounts for self and family members.
SBP expects that this facility will help to achieve financial inclusion targets set out under National Financial Inclusion Strategy (NFIS) and provide standard framework governing the limited mandate accounts and products currently being offered by commercial banks and microfinance banks. Over and above, general public will get benefit of banks accounts and allied facilities.