Karachi, April 1, 2026 – In a major step towards financial inclusion, the State Bank of Pakistan (SBP) has introduced a new framework allowing teenagers aged 13 to 18 years to open and operate bank accounts in their own names. The initiative aims to promote savings habits and provide early exposure to financial services among young Pakistanis.
Under the new guidelines, resident teenagers can open accounts or digital wallets individually or jointly, in local currency (PKR) only. The accounts will be categorized as savings accounts by default and will also be eligible to receive the PKR equivalent of foreign remittances. The framework applies to all banks, microfinance banks, and electronic money institutions across the country.
Simplified Account Opening Process
The SBP has ensured a simplified onboarding process, allowing accounts to be opened both in-person and through digital platforms. Accounts can be activated instantly upon submission of required documents, though the process must not exceed two working days. Applicants will also receive a tracking ID to monitor their application status.
For identity verification, teenagers will undergo biometric verification where applicable or alternative NADRA-based identification. Parents or guardians must provide consent through an indemnity agreement, take legal responsibility for the account, and declare the source of funds. Additional compliance measures, including AML/CFT regulations, will apply to ensure safe financial practices.
Features and Limitations
The teen accounts will include debit cards (physical or virtual) and access to online and mobile banking services. However, certain features will not be available, such as cheque books, credit facilities, or overdraft options, to ensure responsible usage.
Financial Inclusion and Awareness
The SBP emphasized that the initiative is designed to build financial literacy and encourage responsible financial behavior from a young age. Upon reaching adulthood, these accounts will automatically be converted into regular accounts, subject to regulatory requirements.
Banks have also been directed to launch mass media campaigns and financial literacy programs to raise awareness about teen banking and promote its adoption nationwide.
Experts believe the move will not only enhance financial inclusion but also help integrate Pakistan’s youth into the formal banking system, fostering a culture of saving and digital financial awareness.