The State Bank of Pakistan (SBP), the country’s central bank, has released draft Open Banking Regulations for public consultation. The central bank said the draft is meant to encourage innovation, strengthen competition and widen access to efficient, customer-focused digital financial services.
Under the proposal, customers would gain more control over their financial information through secure, consent-based sharing. Authorised Third Party Providers (TPPs)—firms allowed to connect to bank systems with customer permission—could also initiate business payments on a customer’s behalf.
What the draft rules would require
The draft would require all Account Holding Institutions (AHIs)—banks and similar entities that hold customer accounts—to offer consent-based access to customer data and payment initiation services. SBP said those services must meet high standards of security and consumer protection.
On data location, the central bank stated that customer data obtained under the regulations would be stored and processed inside Pakistan, unless it is handled through a cloud provider under SBP’s existing Framework on Outsourcing to Cloud Service Providers.
Payments, credit and SMEs
SBP said open banking is intended to make digital payments more efficient and to broaden access to financial services. In particular, the draft would support business-to-business (B2B) and consumer-to-business (C2B) payments.
The central bank also said customer data and transaction histories could be used for alternative credit assessment. That, it argued, could improve access to finance for merchants and small and medium enterprises (SMEs), and help develop more tailored financial products.
Safeguards and how to comment
According to SBP, the draft draws on international practice and on findings from the first cohort of its Regulatory Sandbox on Open Banking. It said the text includes safeguards on data protection, privacy, cybersecurity, fraud prevention and consumer protection, as part of a wider push for a more connected and inclusive digital finance system.
As part of consultation, SBP invited comments from financial institutions, fintechs, technology providers, consumer groups, academia and the general public so the framework can be refined before it is finalised.
Aasan alfaaz mein
State Bank ne open banking ke draft qawaid jaari kiye hain jin par awam aur banks raye de sakte hain. Agar aap ijazat dein to authorised companies aapke bank data se payment ya credit assessment mein madad le sakti hain. Data zyada tar Pakistan ke andar hi rehne ki shart rakhi gai hai. Is se SME aur rozmarra ke digital payments asaan hone ki umeed hai, lekin final rules abhi consultation ke baad aaengi.
