KARACHI: The State Bank of Pakistan on Wed­nesday launched Asaan Remittances Account to be opened by banks with simplified procedures to serve the underserved and unbanked.

The central bank said it has launched the facility in collaboration with Pakistan Remittance Initiative (PRI) with a primary objective to encourage opening of bank accounts for receiving home remittances, instead of traditional over-the-counter cash transactions.

This category of limited mandate accounts is designed for beneficiaries of home remittances and will be fed with the proceeds of home remittances only.

The prospective recipients and their family members (beneficiaries of home remittances) can open these accounts by contacting a bank’s branch personally, or, through the bank’s designated staff on customers’ behalf.

Individuals can open these PKR accounts with a simple, one-page account opening form, which is both paper-based and electronic, requiring only basic customer information.

The customer due diligence and other controls specified for the Asaan Account, that was earlier launched by SBP in 2015, will be applicable for opening of this account.

International Bank Account Number (IBAN) and names of prospective remitter(s) stating relationship with the account holder is a mandatory requisite for the Asaan Remittance Account.

A maximum credit balance limit of Rs2 million, cash withdrawal limit of Rs50,000 per day and fund transfer limit of Rs50,000 per day has been set for these accounts.

The SBP expects that this facility will help in achieving financial inclusion targets set out under the National Financial Inclusion Strategy and provide standard framework governing the limited mandate accounts and products currently being offered by commercial banks and microfinance banks.

Published in Dawn, December 7th, 2017