The Chief Executives,
All Banks/DFIs,

Dear Sirs/ Madam,

 

PRUDENTIAL REGULATION M-1- OBTAINING CNIC FROM ALL THE BANK CLIENTS

Please refer to Prudential Regulation M-1 issued vide BPD Circular No.10 dated March 29, 2003 and BPD Circular Letter No. 8 dated March 9,2004 on the above subject.

2. In this regard, Federal Government had declared old National Identity Card (NIC) as invalid identification document after January 31, 2004 and announced Computerized National Identity Card (CNIC) as a valid document. Accordingly, Prudential Regulation M-1, which lays down minimum requirements to be fulfilled by banks/DFIs while starting relationship with new customers and maintaining and continuing relationship with existing customers, also requires that banks/DFIs should obtain CNICs from all their customers/clients for opening of accounts/ extension of financing.

3. It has, however, been observed that despite a lapse of over a year, banks/DFIs are continuing relationships with their existing customers on the basis of old NICs in violation of Prudential Regulation M-1.

4. The banks/DFIs are, therefore, advised to obtain an attested copy of CNIC from (i) all their existing customers/ clients and (ii) from those who opened their accounts on the basis of NADRA receipt, but have not furnished a copy of their CNIC as yet. The communication to the account holders to this effect, in addition to other means, may also be made through a separate letter alongwith the half-yearly statement of account for the period ending June 30, 2005. The banks should confirm compliance of the above instructions to SBP by November 30, 2005.

5. State Bank of Pakistan, during the course of inspection, would particularly check the compliance of the above instructions. Non-compliance of the above instructions will invoke penal provisions under Banking Companies Ordinance 1962.

Please acknowledge receipt.