SBP directs biometric verification of branchless banking accounts by March 31

SBP directs biometric verification of branchless banking accounts by March 31

KARACHI: State Bank of Pakistan (SBP) has directed financial institutions to ensure biometric verification of branchless banking customers by March 31, 2020.

In a circular issued on Tuesday directed all banks and microfinance banks to complete biometric verification of all level-1 accounts by March 31, 2020. In case biometric verification is not performed, the financial institutions shall convert all these accounts to Level – 0 with effect from April 01, 2020.

The transaction limits for Level – 1 accounts are as follow:

a. Rs. 50,000 per day [This limit shall not be applicable on: (i)credit from employers for salaried persons against proof of employment and (ii) payment to trusted merchants including schools and hospitals etc.]

b. Rs. 200,000 per month

The transaction limits for Level-0 accounts are as follow:

a. Rs. 25,000 per day

b. Rs. 50,000 per month

c. Rs. 200,000 per year

d. Rs. 200,000/- maximum balance limit

The financial institutions operating branchless banking are required to follow regulations related to Know Your Customer (KYC)/Account Opening requirements and conditions:

For Level-0 accounts:

a) Verification of customer identity from NADRA

b) Pre-screening the name and CNIC against proscribed/designated persons and entities as per the Statutory Notifications issued by Federal Government from time to time.

c) Call Back Confirmation or generation of One-Time Password (OTP) for verification in remote account opening.

For Level-1 accounts:

a) Biometric Verification of customer from NADRA

b) Pre-screening the name and CNIC against proscribed/designated persons and entities as per the Statutory Notifications issued by Federal Government from time to time.

c) Call Back Confirmation or generation of One-Time Password (OTP) for verification in remote account opening.

The SBP said that financial institutions shall keep all necessary record obtained through CDD measures, account files and business correspondence and results of any analysis undertaken, for at least ten years following the termination of the business relationship.

The central bank further said that the financial institutions shall ensure that documents, data or information collected under the CDD process is kept up to date and relevant, by undertaking reviews of existing records.

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