The State Bank of Pakistan (SBP) has announced new directives for banks and microfinance institutions (MFBs) to upgrade their security measures through enhanced Close Circuit Television (CCTV) systems. This update, aimed at strengthening surveillance operations, sets new guidelines for the installation of CCTV cameras in and around bank branches, refining earlier instructions to improve the quality and coverage of visual records.
This move follows feedback from stakeholders and aligns with the central bank’s initiative to ensure a phased rollout of enhanced surveillance measures. As part of this update, the SBP has revised Circular Letter No. 31 of 2022, initially issued on October 26, to reflect new standards and protocols for CCTV installations in bank branches.
Under the revised guidelines, banks and MFBs are required to update their internal Standard Operating Procedures (SOPs). These updated SOPs must specify where CCTV cameras should be installed within and around bank premises, including critical areas such as ATM vestibules, branch entrances, and other key vantage points that may help in maintaining security. Additionally, the SOPs need to detail the minimum duration for preserving visual recordings and set quality benchmarks for the cameras used, including the resolution standards necessary for continuous recording.
One of the key changes in the new directive is the adjustment of the camera resolution requirement. Banks and MFBs are now required to install cameras with a minimum resolution of 5 Megapixels (MP), rather than the previous specification of 6 MP. This adjustment aims to balance the need for clear, high-quality recordings with the practical considerations of implementing these systems across diverse locations. Alongside the installation of the cameras, banks must ensure that supporting equipment, such as storage devices and wiring, is also updated to maintain consistent recording quality.
To ensure a smooth transition to these new standards, the SBP has introduced a phased approach for installing the specified CCTV cameras. Banks and MFBs are directed to prioritize the installation in branches located in Tier 1 cities, as outlined in the Branch Licensing Policy, as well as in high-risk geographical areas. The deadline for these installations has been set for March 31, 2025. Each institution must define its high-risk areas and identify the critical points within their branches that require enhanced surveillance in their revised SOPs.
The SBP’s directive also extends to new branches and those undergoing renovations as part of their budgeted plans for the calendar year 2024 (CY2024). Any branches that have not yet placed orders for CCTV equipment must adhere to the updated specifications for both new installations and upgrades.
For banks and MFBs looking to expedite the implementation process, the SBP’s guidelines allow them the option to accelerate the installation of the specified CCTV systems across their entire branch network. This flexibility is designed to enable institutions to adapt more quickly to evolving security requirements, particularly in areas deemed to be at higher risk.
To ensure compliance with these directives, the SBP requires all banks and MFBs to submit detailed plans outlining their approach to implementing the new regulatory standards. These plans are to be submitted to the relevant Banking Supervision Department, which will oversee the compliance and progress of each institution.
The updated guidelines reflect the SBP’s commitment to improving security and operational standards in Pakistan’s banking sector. By mandating the installation of high-quality CCTV systems, the central bank aims to enhance the safety of customers and staff, deter potential criminal activities, and ensure that critical events are accurately recorded. This move is part of broader efforts to strengthen the resilience and integrity of the country’s financial system, fostering a safer and more secure banking environment.
With the phased deadline of March 31, 2025, the SBP’s new regulations place a strong emphasis on preparedness and proactivity in the banking sector. As banks and MFBs work to integrate these updated requirements into their operations, the hope is that these enhanced surveillance measures will help create a safer and more reliable banking experience for all stakeholders.