SBP Introduces New Framework for BISP Beneficiaries’ Financial Assistance

sbp introduces new framework for bisp beneficiaries' financial assistance

The State Bank of Pakistan (SBP) has introduced a new facilitation framework designed to streamline the process of delivering financial assistance to beneficiaries of the Benazir Income Support Program (BISP). This initiative aims to ensure that BISP beneficiaries receive their financial aid directly into their bank accounts.

Under this framework, approximately 9.3 million BISP beneficiaries will have the opportunity to open a specialized “BISP Sahulat Account” during a single visit to designated bank branches located conveniently across the country.

To manage the large number of beneficiaries effectively, the framework will be rolled out in phases. Initially, a pilot phase will take place in Karachi and Lahore, targeting around 300,000 BISP beneficiaries. Upon successful implementation of the pilot phase, the framework will be expanded to other cities in consultation with BISP.

This new framework is expected to simplify the disbursement of social welfare payments, promote transparency, enhance financial inclusion for women, and encourage the adoption of digital financial services.

In collaboration with BISP and banks, the SBP has developed this facilitation framework to provide ease and convenience to beneficiaries in receiving their social welfare payments. This initiative ensures that beneficiaries can open accounts in all banks and Microfinance Banks (MFBs) nationwide.

Here are further details of the facilitation framework:

Onboarding of BISP Beneficiaries:

  • Banks will securely receive account opening information from BISP, including the beneficiary‚Äôs full name, CNIC number, date of birth, and residential address.
  • Screening of beneficiary information will be conducted against relevant lists to ensure compliance with regulations.
  • Banks will create accounts for beneficiaries in designated branches and share IBANs with BISP for fund disbursement.

Accounts/ATM Activation and Disbursement:

  • Beneficiaries’ bank accounts will be activated through Biometric Verification (BV) during branch visits.
  • Oral consent will be obtained from beneficiaries for various purposes such as FATCA/CRS compliance and acceptance of Terms and Conditions.
  • Pre-activated PayPak cards will be provided to beneficiaries for debit and ATM transactions.
  • Checkbooks and internet/mobile banking facilities will not be issued for BISP accounts.

Accounts Operations:

  • During the pilot phase, accounts will have limited mandate primarily for receiving BISP disbursements.
  • Banks will recover costs associated with account opening and maintenance from BISP, ensuring no charges on beneficiaries.

Facilitation and Support:

  • Banks will establish dedicated functions for ongoing coordination with BISP and resolving issues.
  • Training programs will be conducted for bank employees to facilitate BISP beneficiaries.
  • Mechanisms will be in place for timely resolution of beneficiary complaints and 24/7 customer support services.

With the introduction of this framework, SBP aims to enhance the efficiency and transparency of social welfare payments, ultimately benefiting the BISP beneficiaries across Pakistan.