June 24, 2015
News
National Financial Inclusion Strategy: SBP asks banks to introduce Asaan Account
KARACHI: The State Bank of Pakistan (SBP) has ordered all commercial banks to simplify account-opening requirements and introduce a new account category “Asaan Account” which can be opened against a minimum deposit of Rs 100 with no minimum balance requirement.
Individuals would now open the Asaan Account with a simple and one-page account-opening form (paper based or electronic) in Pakistani rupees. These accounts shall preferably be card-based with option of chequebooks. SMS/Internet/Mobile Banking would be optional.
The banks may offer these accounts as current, saving or remunerative and requirements related to basic customer information include name, father/spouse name, date of birth, place of birth and mother’s maiden name. Valid identity documents for account opening shall include Computerised National Identity Card (CNIC), Smart NIC (SNIC), NIC for Overseas Pakistanis (NICOP), Pakistan Origin Card (POC), passport and pension book.
These accounts may also be opened by the bank’s permanent employee/staff by visiting places of customers besides bank branches. The central bank has set the limit for monthly total debit at Rs 500,000 whereas the total credit balance limit has been set at Rs 500,000. The instructions were given to all commercial banks, Islamic banks, micro-finance banks and branchless banking services.
The bankers said that central bank along with commercial banks and Pakistan Banks Association (PBA) has carried out extensive studies to provide banking services to the unbanked society.
They said documentation requirement of the banks were observed hectic for a layman to open an account despite having considerable income, hence he or she was deprived of banking access and it caused impediment in the financial inclusion of the economy.
They pointed out the revealing source of income and it’s proof was difficult for many professionals such as freelances, tutors and housewives which were denied basic banking service previously. The central bank decided to provide laymen to get banking access and achieve financial inclusion, they added. The simplified approach for opening of these accounts by banks is designed to extend benefits of financial services to common people, especially the unbanked segments of the population.
The banks may convert existing Basic Banking Accounts (BBAs) to Asaan Accounts provided prior consent of customers is obtained and the terms and conditions of Asaan Account are conveyed to them. However, banks shall not recover any charges for conversion of BBAs to these accounts. Further, in case the Asaan Account holder requires financial services for higher than the specified transaction limits, the Asaan Account could be converted to regular account subject to completion of Customer Due Diligence as per ‘Guidelines on Risk Based Approach’ for banks and other applicable requirements.
The initiative of Asaan Account was taken in order to expedite the financial inclusion in which a target of 50% growth in bank accounts by adult population by the year 2020 has been set out as per the National Financial Inclusion Strategy (NFIS).
The banks shall also launch public awareness/media campaigns to sensitise general public about the benefits of banking services and features of Asaan Account as per the instructions.
Courtesy www.dailytimes.com.pk