SBP issues framework for fair treatment of banking consumers

Karachi, October 17, 2025 – The State Bank of Pakistan (SBP) has unveiled the Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF) as part of its Vision 2028 strategy to strengthen consumer protection and market conduct.

This new regulatory framework aims to create a more inclusive, transparent, and resilient financial ecosystem that benefits both consumers and financial institutions.

The BC&FRF was developed after extensive consultations with stakeholders from both the consumer and industry sides. It sets clear principles-based and rule-based obligations for banks, Development Finance Institutions (DFIs), Electronic Money Institutions (EMIs), and Payment System Operators/Providers (PSOs/PSPs), covering the full product lifecycle—from product development and pre-sale disclosures to service delivery, complaints handling, and termination of services.

The framework is divided into two main parts:

• Part I: Outcome-based general principles.

• Part II: Six key pillars guiding fair conduct:

1. Governance and Oversight – Leadership responsibilities and promoting a culture of fairness.

2. Disclosure and Transparency – Timely, accurate, and accessible information for informed decision-making.

3. Fair Treatment and Business Conduct – Ensuring equitable, inclusive, and non-discriminatory practices.

4. Data Protection and Privacy – Safeguarding consumer data and maintaining confidentiality.

5. Dispute Resolution Mechanism – Fair, efficient, and accessible complaint handling.

6. Awareness and Capacity Building – Promoting both institutional readiness and consumer education.

The BC&FRF represents a transformative step in Pakistan’s financial sector, reinforcing consumer rights, ethical business conduct, and accountability. By embedding fairness, transparency, and protection into financial services, the SBP strengthens trust and fosters a consumer-centric financial environment.

Keywords: SBP, BC&FRF, consumer protection, financial services Pakistan, fair treatment of consumers, financial transparency, Pakistan banking sector.