The 3rd quarterly coordination meeting between the State Bank of Pakistan (SBP) and the Pakistan Banks’ Association (PBA) took place on October 3, 2023. The meeting covered a range of critical topics affecting the banking industry. Here are the highlights:
SBP Agenda Items:
- Challenges in Customer Onboarding:
SBP highlighted the complexities faced by banks in customer onboarding. PBA emphasized the legal and compliance aspects and urged SBP to publicize penalties imposed on banks. Both entities agreed on the need to balance onboarding simplification with AML requirements. - Forced Conversions of Saving into Current Accounts:
SBP raised concerns about banks forcibly converting savings accounts to current accounts. Governor SBP warned of regulatory action against such practices and stressed the importance of bank sensitization. - Adoption of Person-to-Merchant (P2M) Raast Module:
SBP noted the low adoption rate of the P2M Raast Module and encouraged banks to promote it at a strategic level. PBA echoed the sentiment, emphasizing the need for awareness campaigns. - Promotion of Home Remittances:
Governor SBP highlighted banks’ role in promoting home remittances. PBA acknowledged SBP’s efforts and pledged support for enhancing marketing and awareness campaigns. - Update on Exchange Company Reforms:
SBP emphasized reforms in the exchange companies’ sector and urged banks to meet specified timelines for establishing bank-sponsored exchange companies. - Industry-Wide BCP Drill focusing on Cybersecurity:
A joint PBA-SBP committee was formed to develop scenarios for an industry-wide Business Continuity Planning (BCP) drill, focusing on cybersecurity.
PBA Agenda Items:
- Expansion of Real-Time E-CIB checks for Digital Lending:
PBA highlighted the importance of real-time E-CIB checks for digital lending and requested SBP’s development of an API for e-CIB. A proposal has been submitted to SBP. - Application of FE Manual on Corporate/Business Cards:
PBA discussed challenges related to FE Circular No. 7 of 2022 on Corporate/Business cards and proposed waiving its applicability. A detailed proposal was shared with SBP. - Cost of SMS:
PBA expressed concerns over rising SMS alert costs and explored alternatives like in-app notifications and emails. A proposal addressing liability determination and risks was submitted to SBP. - Subsidy Claims Against MPMG, Kamyab Jawan, and Remittances:
PBA informed SBP about pending claims against MPMG and Kamyab Jawan programs and requested continued support. SBP assured to pursue the Finance Division for timely payments.
The meeting concluded with both SBP and PBA reaffirming their commitment to address the challenges and opportunities facing the banking sector in Pakistan.
Source: PBA