SBP Orders Banks to Open Accounts for Mosques and Seminaries Within 5 Days

The State Bank of Pakistan (SBP) has urged banks to assist mosques (Masajid) and seminaries in obtaining bank accounts after meeting the necessary standards. According to the SBP, several stakeholders have expressed concern over the non-provision of banking facilities to mosques, particularly the activation of their bank accounts, on flimsy pretexts, which is contrary to the goal of financial inclusion and economic documentation. As a result, the SBP has recommended that traditional and microfinance banks (MFBs) refrain from discriminatory conduct and assist mosques in opening bank accounts after meeting the appropriate conditions as specified in the Trusts, Societies, and Associations classifications, and NGOs/NPOs/charities. Banks and MFBs must also assist unregistered prospective mosque clients in being registered under the appropriate category. Furthermore, the maximum turnaround time (TAT) for the decision to approve or deny a mosque account must be five working days from the moment all legal and regulatory criteria have been met.