In a significant move to enhance ease of doing business in Pakistan, the Securities and Exchange Commission of Pakistan (SECP) is collaborating with the State Bank of Pakistan (SBP) and the Pakistan Banking Association (PBA) to develop a standardized application interface for the same-day corporate bank account opening initiative for corporate entities. This initiative aims to streamline and accelerate the process of opening corporate bank accounts, providing newly established businesses with quicker access to essential banking services.
Currently, setting up a corporate bank account involves multiple steps, including submitting various documents and undergoing verification processes. However, through this new initiative, businesses will be able to complete the entire process on the same day, significantly reducing the delays and hurdles typically associated with corporate account openings. The move is part of broader efforts to promote financial inclusion, boost economic growth, and simplify the business environment in Pakistan.
To facilitate this process, the SECP has developed a comprehensive concept paper in consultation with the Central Depository Company (CDC). This paper outlines the technical, regulatory, and digital procedures required to enable same-day account opening through the eZfile portal, a digital platform used for company registration and filings. The aim is to integrate regulatory processes, banking systems, and technological interfaces to eliminate redundancies and improve efficiency.
One of the key components of the initiative is the introduction of a “Corporate Account Opening” section within the eZfile portal. This section will allow businesses to set up their bank accounts during the company registration process. By submitting required documents directly through the portal, companies will have their verified data shared seamlessly with selected banks, ensuring a smooth and standardized process for opening accounts. This mechanism will be push-based, ensuring real-time data exchange and eliminating the need for businesses to manually submit duplicate information across multiple platforms.
Further enhancing the initiative, the SECP plans to leverage API integration with participating banks, ensuring a streamlined flow of verified information from SECP to banks for account creation. A centralized Know Your Customer (KYC) process will also be established, reducing the need for repeated documentation across various branches. Additionally, companies will receive electronic alerts upon successful account activation, ensuring they are notified in real time of the status of their accounts.
Incorporating features such as RAAST platform integration for seamless transaction processing, the initiative will also allow for provisional accounts to be opened in the interim while verification is being completed. The process will be further simplified by the system-generated board resolution for account opening (Annexure-B), ensuring that all corporate governance requirements are met efficiently.
To ensure compliance and the operational feasibility of the process, the Working Group formed by SECP, SBP, and PBA will deliberate on the enhancements presented in the concept paper and finalize the regulatory and operational framework. Considerations are also being made for the minimum deposit requirements and biometric verification of authorized signatories to ensure that the process adheres to compliance standards.
By automating and simplifying corporate account opening procedures, this new initiative seeks to position Pakistan as a leader in digital financial services. It aims to provide newly established companies with immediate access to banking services, thereby fostering an environment conducive to innovation and entrepreneurship. This initiative not only accelerates the business setup process but also improves Pakistan’s overall business climate by integrating modern banking technologies and ensuring compliance with international best practices.