It has been observed by the State Bank that some of the banks are entering into contracts for procurement of IT solutions / softwares without ensuring compatibility of such solutions / softwares with their existing systems as also without carrying out proper due diligence of the solution providers. This has also created the issues of effective integration with the existing systems as also non-compatibility with the IT systems of the SBP.

It has been decided that henceforth before entering into any contract for procurement of IT solutions / softwares involving an amount exceeding Rs. 10 million or making any further payments against all such contracts which have already been executed, banks / DFIs will invariably seek no objection from the Banking Policy & Regulations Department. In case any of the bank / DFI has a major issue with any of such solution provider, that should also be brought to the notice of this department without further loss of time.

All banks/DFIs are advised to ensure strict compliance of the above instructions as any violation thereof would attract punitive action under the relevant provisions of Banking Companies Ordinance, 1962.


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