SBP taking measures to protect consumers of banking services
The State Bank of Pakistan (SBP) has launched a comprehensive regulatory framework aimed at promoting fairness, transparency, and consumer-centric practices across the country’s financial sector.
Titled the “Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF),” the initiative is designed to ensure that banks and financial institutions uphold principles of integrity, accountability, and transparency at every stage of customer interaction.
By embedding ethical practices and robust data protection standards into financial operations, the framework aims to build public trust, raise service quality, and foster a more resilient and inclusive financial ecosystem in Pakistan. It also strengthens institutional governance while safeguarding consumer rights across the banking and payments landscape.
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The BC&FRF aligns with SBP’s Vision 2028, supporting its broader objective of enhancing market conduct and consumer protection. The framework was developed following extensive consultations with stakeholders from both the demand side (consumers) and the supply side, including banks, Development Finance Institutions (DFIs), Electronic Money Institutions (EMIs), Payment System Operators (PSOs), and Payment Service Providers (PSPs).
Key features of the framework
The BC&FRF incorporates a hybrid regulatory approach—blending principles-based and rules-based obligations—tailored to the nature and scope of each institution’s operations. It applies across the entire financial product lifecycle, from product development and pre-sale disclosures to service delivery, complaint resolution, and termination of relationships.
The framework is structured in two main parts:
Part I: Outcome-Based General Principles
These provide overarching guidelines for fair treatment and ethical conduct.
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Part II: Six Core Pillars
1. Governance and Oversight – Clarifies leadership responsibilities in embedding fair conduct across institutions.
2. Disclosure and Transparency – Ensures timely, accurate, and understandable information for informed consumer decision-making.
3. Fair Treatment and Business Conduct – Promotes inclusive, equitable, and non-discriminatory practices.
4. Data Protection and Privacy – Establishes standards for safeguarding consumers' personal and financial data.
5. Dispute Resolution Mechanism – Mandates accessible, efficient, and fair grievance redressal channels.
6. Awareness and Capacity Building – Focuses on both consumer education and institutional preparedness.
With the rollout of this framework, the SBP reinforces its commitment to creating a consumer-first banking environment and advancing financial inclusion through responsible business practices.
Source: Pro Pakistani