Starting October 25, 2025, millions of digital banking users across Pakistan may lose access to their mobile wallets and digital bank accounts as the State Bank of Pakistan’s (SBP) new biometric verification mandate comes into effect. The regulation, introduced earlier this year under BPRD Circular No.1 of 2025, makes biometric verification the primary method of customer identification across all SBP-regulated financial institutions, including banks, digital banks, microfinance institutions, development finance institutions (DFIs), and electronic money institutions (EMIs).
The move is a major step by the SBP to enhance financial security, prevent fraud, and ensure stricter compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) standards. According to the central bank, biometric verification is now a non-negotiable component of the customer onboarding and account maintenance process. This measure aims to establish a unified and secure identity framework that mitigates risks associated with unverified digital accounts and improves the overall transparency of Pakistan’s financial system.
Under the new regulations, all customers were required to complete their biometric verification within the compliance window provided to financial institutions earlier this year. That window officially closes on October 24, 2025. Starting from October 25, users who have not completed biometric verification will face restrictions, including blocked debit transactions, inability to send or receive money, and possible suspension of account functionality.
The SBP had previously allowed a 60-day grace period for biometric verification, but the latest framework enforces immediate action for non-compliant users once the deadline expires. This change marks a significant tightening of digital banking controls and aligns Pakistan’s financial practices with international standards for identity verification and risk management.
Experts have cautioned that the policy could affect tens of millions of accounts nationwide, including foreign currency accounts and Roshan Digital Accounts (RDAs) operated by overseas Pakistanis. Many customers who opened accounts remotely or through digital onboarding channels may face service interruptions unless they complete in-person or remote biometric verification through their respective banks or wallet providers.
The updated “Consolidated Customer Onboarding Framework” introduced by the SBP applies uniformly to both individual and business accounts, whether opened in person or through digital platforms. It integrates customer due diligence (CDD) measures across all financial institutions, ensuring consistent verification processes and compliance monitoring.
For the banking and fintech sectors, this directive represents a crucial regulatory milestone aimed at curbing misuse of digital financial channels while promoting greater accountability and safety. Financial institutions have been working to notify customers, urging them to complete verification at the nearest branch or via supported digital methods before the deadline.
The State Bank of Pakistan has not announced any extensions or grace periods, signaling its determination to enforce the rule strictly. Banks and digital payment operators have been ramping up awareness campaigns to minimize disruption and ensure compliance within the tight timeline.
While the move is expected to cause temporary inconvenience for users, regulators and industry stakeholders agree that the long-term benefits — including improved financial security, reduced fraudulent activity, and stronger regulatory alignment — will outweigh short-term challenges. The biometric verification requirement reflects Pakistan’s broader digital transformation and its efforts to balance innovation with robust governance in the financial sector.
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