Emptor Bank Account Biometric Re-Verification Starts From 30th November 2018 in Pakistan

Emptor Bank Account Biometric Re-Verification Update:

State Bank of Pakistan directs all commercial banks, including microfinance and Development Finance Institutions (DFIs), to verify banks accounts of customers.

Most Importantly, the verification of individuals, corporations and associations with biometric data and proper submission of documents starting from November 30, 2018.

Details of Emptor Bank Account Biometric Re-Verification

Therefore, according to State Bank of Pakistan, The objective behind the verification is to combat money laundering and terrorist financing.

This whole drive will start in phases according to different categories of customers and their accounts and it will end by 30th June 2019.

All over Pakistan, in all branches and sub-branches of the banks, all accounts will be verify. Emptor Bank Account Biometric Re-Verification.

Read Also: SBP Newfangled Deposit Protection Corporation DPC Scheme for Pakistani Bank Account Holders

Besides that, due to ever-growing incidences of fake bank accounts, the decision by State Bank has been taken to re-verify the accounts and find out about any suspicious transactions.

A schedule decide by the State Bank for different categories of bank accounts. Emptor Bank Account Biometric Re-Verification.

Here is the schedule:

All banks are ask by State Bank to make sure that they identify and verify each customer’s bank accounts.

It must be ensure that the transactions conduct in the bank accounts match the bank’s knowledge of the customer, business and fund sources.

The State Bank has made it clear that during the course of inspection will particularly assess the compliance of above requirements.

Besides that non-compliance will attract appropriate enforcement action in accordance with relevant laws. Emptor Bank Account Biometric Re-Verification.

About Biometric Verification System in Banks

Biometrics is the new way to securely identify and verify bank customers.

For a very long time, user name and password combination was thought of as the most secure authentication mechanism for user accounts and devices.

However, the rising instances of fraudulent transactions and identity theft prove otherwise. Emptor Bank Account Biometric Re-Verification.

Because, biometric single sign-on frees the users from remembering and entering their password every time they log on to their laptop or computers.

Therefore, instead of entering a password, users simply swipe their fingerprints to authenticate themselves and log on to their accounts.

Besides that, it streamlines the authentication process as it can positively verify the user’s identity using their unique fingerprint. Emptor Bank Account Biometric Re-Verification.

Main Sourc: Mehran Post

Sources: ProPakistani, Monthly Brand Magazine, Research Snipers

Image Sources: Tender Retailer, Geo TV, Bayometric 

SBP Newfangled Deposit Protection Corporation DPC Scheme for Pakistani Bank Account Holders

Deposit Protection Corporation DPC Scheme Update:

Deposit Protection Corporation (DPC), a wholly owned subsidiary of State Bank of Pakistan (SBP) has launched deposit protection mechanism for banking companies on Friday the 22nd June 2018. Deposit Protection Corporation DPC Scheme.

As envisaged in the Deposit Protection Corporation Act, 2016, the protected amount has been determined to be Rs250,000 per depositor per bank. All commercial banks are members of this scheme and will be paying the required premium, said a SBP statement. Deposit Protection Corporation DPC Scheme.

Read Also: SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Officially Launched

The establishment of DPC was envisaged as one of the important objectives in SBP’s strategic plan 2016-2020 under the strategic goal titled “strengthen the financial system stability regime”. The idea of introducing deposit insurance was first introduced through the IMF facility that Pakistan signed in November 2008. It has been a work in progress ever since. Deposit Protection Corporation DPC Scheme.

The financial system faced a severe liquidity crunch in those days, prompting extraordinary steps from the SBP to shore it up. Even though a bank failure did not occur, the experience was enough to put deposit protection onto the policy radar. Deposit Protection Corporation DPC Scheme.
According to SBP:

“The objective of DPC is to compensate the small and financially unsophisticated depositors to the extent of protected deposits in the unlikely event of a bank failure.”

The SBP said the stability of their financial systems is of paramount concern for policymakers around the world. The SBP has a comprehensive framework to ensure safety and soundness of the banking system of Pakistan, it added.

Importance of Deposit Protection Scheme

Establishment of a formal deposit protection scheme will be beneficial for Pakistan as it will build up sizable funds, through premium payments from banks that can be used to provide immediate liquidity to small depositors in case of a bank failure. Such schemes will not only reduce burden on the exchequer but will also improve the financial stability in the system.

Financial Stability is one of the top priorities of SBP and its effective supervisory regime has ensured that depositors do not lose their money and that public confidence in the system remains strong. The implementation of deposit protection will further strengthen the overall regulatory architecture and safety of deposits.

DPC is a part of the stability of the financial systems, which is of paramount concern for policymakers around the world. Hence, DPC and its related mechanism have been put in place in line with international standard.

Source: Mehran Post 

FBR SBP Online Tax Duties Collection System Launched in Pakistan

FBR SBP Online Tax Duties Collection System Update:

The Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP) on Tuesday (20-03-2018) launched an online tax collection system, allowing taxpayers to pay taxes and duties using internet banking accounts or ATMs, without the hassle of visiting bank branches. FBR SBP Online Tax Duties Collection System.

The online tax collection system is live now and the taxpayers can pay their federal taxes including income tax, sales tax, customs duty and federal excise duty through alternative delivery channels — ATM, online banking, phone banking and contact centres — at any time seven days a week. FBR SBP Online Tax Duties Collection System.

The system is based on the 1Link Biller module, whereby FBR has been added as one of the Billers on the banks’ ‘Bill Payment’ page. FBR SBP Online Tax Duties Collection System.

Read: FBR SBP Tax Customs Duty Payments Using ATM Internet Banking to Launch Soon

The system was launched by Haroon Akhtar, Special Advisor to Prime Minister on Revenue in a simple ceremony held at FBR House Islamabad on Tuesday. The Ceremony was also attended by Tariq Bajwa, Governor SBP, Tariq Pasha Chairman FBR, Chairman and CEO 1Link and senior officials of SBP, FBR and Customs. FBR SBP Online Tax Duties Collection System.

On the occasion, Haroon Akhtar congratulated the State Bank of Pakistan, FBR and 1Link for initiating and completing this important project. He said that the online collection system provides much needed relief and convenience to the tax payers and expressed optimism that the business community will take full advantage of the system and pay bulk of their taxes and duties using the online facility. He said as the system provides end to end solution right from filing of the tax return to payment of taxes to recording in government books of accounts and thus will bring efficiency, safety and transparency in Government tax collection system. He added that the system will also be instrumental in improving Pakistan’s ranking in the World Bank’s ease of doing business index.
Launching online systems is the part of Pakistan’s digital strategy, which stresses the need to adopt technology at all governmental and corporate levels that could bring ease of doing business in Pakistan.

Earlier Pakistan has launched an online system for company registration in which made the company registration process hassle-free, as a result, thousands of new companies were registered in Pakistan during the month of February 2018 alone.

How The System Works

The system is online end-to-end, from the generation of payment slip to submission and filing of returns, everything will be done online. Here is how it will go;

• Users can generate Payment Slip ID (PSID) by filling their tax and customs details on FBR (IRIS) and Customs (WeBOC).
• This slip will then be used to access the tax payment details through any ATM or banks’ internet banking.
• The taxpayer will then transfer the due amount to the designated government account. A specified agent can transfer the money on taxpayer’s behalf as well.

FBR has been added as a biller on banks’ payment pages, and taxpayers can visit the FBR page to generate payment slips.
FBR chairman told that held goods will be released immediately after importers pay their taxes and customs duties.
The online/ATM tax payment was previously available on following banks when the system was launched on trial basis;

• Faysal Bank
• Silk Bank
• Bank Islami
• Askari Bank
• Bank Alfalah
• Meezan Bank
• Soneri Bank
• JS Bank
• MCB
• UBL
• Summit Bank
• Bank of Punjab
• Bank Al Habib
• HBL
• ABL
• NBP
• Habib Metro
• ICBC

Source: Mehran Post

FBR SBP Tax Customs Duty Payments Using ATM Internet Banking to Launch Soon

FBR SBP Tax Customs Duty Payments Using ATM Internet Banking Update: State Bank of Pakistan, Federal Board of Revenue and 1-Link have signed an agreement to develop a mechanism enabling public to pay taxes and customs duty using internet banking or ATMs.

FBR SBP Tax Customs Duty Payments Using ATM Internet Banking signing ceremony was chaired by Finance Minister Mr. Muhammad Ishaq Dar. The Advisor to the Prime Minister on Revenue, Mr. Humayun Akhtar Khan was also present in the ceremony.

The FBR SBP Tax Customs Duty Payments Using ATM Internet Banking facility would be available round the clock /7 days a week. As per the proposed mechanism the banks will add FBR (Inland Revenue) and FBR (Customs) as Billers in the Billers Module and develop necessary interface with 1-Link.

After the FBR SBP Tax Customs Duty Payments Using ATM Internet Banking system is made operational, the tax payers/importers will fill their tax and custom duty payment details in the FBR (IRS) and Customs (WeBOC) online modules to generate payment slip ID (PSID). The PSID will then be used to access the tax/duty payment details on banks’ webpage or ATM as the case may be.

Read: SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Officially Launched

The PSID will then be used to access the tax/duty payment details on banks’ webpage or ATM as the case may be. The tax payer or their agent will then pay the tax by debiting his/her bank account for onward credit to the respective government account in SBP BSC. The whole process will be online and fully automated.

The SBP has also advised banks to add FBR and Customs as Billers in the Bill Payment System offered by 1-link and develop necessary integration with 1-link within 2 months i.e. by 5th December 2017. The FBR SBP Tax Customs Duty Payments Using ATM Internet Banking system will be made operational by 31st December 2017 after necessary testing.

The banks have been advised to demonstrate full ownership and commitment for successful and timely implementation of this strategically important project, which will bring huge efficiency gains besides facilitating the public in hassle-free payment of government taxes and duties.

The Governor SBP, on the occasion added that the initiative is part of SBP Vision 2020, which envisages the development of the robust payment system and it’s primarily aimed at facilitating the taxpayers and public at large in payment of taxes. The Chairman FBR, Mr. Tariq Mehmood Pasha, on the occasion said that the project is the result of collaboration and cooperation between FBR, SBP and the private sector and will go a long way in further improving the government tax collection systems.

Initially the online tax payment facility shall be made available for all FBR (Inland Revenue and Customs) taxes including income tax, sales tax, excise duty and custom duty. Subsequently the online collection facility will be extended to other Government entities and provincial governments as well.

This shall be an additional option for payment of taxes as the existing tax payment facility at SBP BSC offices in fifteen cities and NBP branches across the country would remain available.

Stepwise Process Flow

• The taxpayer will access systems of FBR (IRIS) or Customs (WeBOC) and fill his / her tax payment details to generate PSID (payment slip ID) for onward usage.
• For tax payment, taxpayer will visit ATM or Internet Banking Portal and inputs his / her PSID generated in step 1 to fetch the tax payment details. After authentication of the payment details of taxpayer or his / her agent as the case may be, confirms the payment of tax.
• Accordingly taxpayer’s account is debited for onward credit to Government Account at SBP BSC Office through 1link system.
• As soon as the taxpayer’s account is debited, 1link system will generate a message for WeBoc or IRIS systems that payment against the PSID has been received.
• For confirmation, taxpayer may view electronic display of payment confirmation on screen of ATM or Internet Banking Portal; bank may also send SMS to taxpayer.
• 1Link will prepare MT-202 files (bank-wise) for settlement through RTGS.
• Simultaneously 1Link will also prepare a detailed report / file of individual transactions containing PSID wise detail of taxes collected through its system.
• Files of MT-202 messages and individual transactions will be fetched from 1links secured FTP and then posted for settlement in RTGS and SBP’s Core Banking system respectively.
• Reports from Core Banking system based on unique transaction IDs (e-CPR) mapped with PSIDs of IRIS or WeBOC systems will be uploaded at Data Acquisition Portal (DAP) of SBP.
• FBR’s IRIS and Customs WeBOC systems will fetch the respective reports from DAP for onward uploading in their System.
• Accordingly e-CPR / unique transaction ID will be available to the taxpayers through FBR’s systems i.e. IRIS and WeBOC.

Source: Mehran Post

SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Officially Launched

SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Update: Tariq Bajwa, Governor, State Bank of Pakistan (SBP) on Friday 25th August 2017 launched SBP Women Entrepreneurs Refinance Credit Guarantee Scheme in Undeserved Areas at a ceremony in Quetta.

The SBP governor said earmarking 20 percent funds in the SBP Women Entrepreneurs Refinance Credit Guarantee Scheme for Balochistan’s women primarily intended to provide them opportunities for establishing new business and extending the old ones in far-flung areas of the province.

The governor informed the audience that it is for the first time in our history that a SBP Women Entrepreneurs Refinance Credit Guarantee Scheme with 0 percent refinance rate and 60 percent risk coverage for small businesses run by women entrepreneurs has been rolled out.
Governor SBP said:

“This SBP Women Entrepreneurs Refinance Credit Guarantee Scheme is an affirmative action by the State Bank to encourage flow of funds to small enterprises run by women of underserved areas of Pakistan. The scheme earmarks, at least 20 percent of funds for Balochistan.”

Balochistan Assembly Speaker Rahila Hamid Khan Durrani, SBP Deputy Governor Jameel Ahmed Khan, Zubair Tufail and high officials of government and private banks were also present on the occasion.

It is pertinent to mention here that this SBP Women Entrepreneurs Refinance Credit Guarantee Scheme is for women entrepreneurs in undeserved areas of the country for setting up of new businesses or expansion of existing ones.

Read: DICE Mega Innovation Entrepreneurship Event Pakistan 2017

The central bank will provide refinance to banks at zero percent. Maximum financing amount is Rs 1.5 million. And maximum financing period is 5 years with grace period of up to 6 months. End user rate is 5 percent which is locked in for financing period. 60 percent risk coverage is available against outstanding principal.

The SBP governor restated his commitment towards sustainable and inclusive economic growth across Pakistan. The governor went onto say that SMES are playing a role of backbone in economy, but unluckily its ratio was touching 8 percent while this remained less than 1 percent in Balochistan; whereas, the part of women was next to nothing.

Bajwa directed bank heads to make more efforts for staggering the SMEs to 15-16 percent and for which all stakeholders would have to render key role. Recounting a reference from a survey conducted in 2015, he said:

“Women hold 11 percent accounts in sum total bank accounts of Pakistan and they were now making strenuous efforts to enlarge women accounts up to 25 percent.”

On the launching ceremony of SBP Women Entrepreneurs Refinance Credit Guarantee Scheme, Rahila said that women in Balochistan were second to none in terms of talent. She appreciated the SBP initiative for women entrepreneurs of backward area and particularly of Balochistan.

The speaker was hopeful that such attractive financing schemes would help poor women to overcome their financial problems and hence bring prosperity to the entire province.

Earlier in the day, Governor SBP called on Mr. Muhammad Khan Achakzai, Governor Balochistan. Governor SBP apprised Mr. Achakzai of SBP’s special focus on agriculture, SMEs and low cost housing in all underserved areas of Pakistan particularly Balochistan.

Governor Balochistan thanked Governor SBP for his efforts in promoting access to finance for the underserved and the under banked. The Governor SBP also met with members of Quetta Chamber of Commerce and Industry (QCCI).

The office holders of QCCI while welcoming Governor SBP apprised him of issues being faced by the business community of Quetta. The Governor SBP assured members of QCCI of his help in resolving their genuine grievances.

Source: Mehran Post