State Bank of Pakistan (SBP) since 2002 has liberalized the Branch Licensing Policy (BLP) with a view to allow the banks to make their branch housing decision within the broad policy parameters. The changes have also been made with the aim to enhance the outreach of banking services to rural/underserved areas of the country. SBP continuing with its above endeavor has revisited the existing BLP with the following objectives:-

i. Consolidate existing policies/instructions issued on branch licensing including opening of branches abroad, opening of branches by MFBs, and DFIs, shifting of branches, annual fee, etc.

ii. Amend the existing instructions for opening of 20% branches in rural/underserved areas for the purpose of enhancing the outreach of banking services.

iii. Introduce new features/options for opening of sub-branches, sales & service centres and mobile banking units.

iv. Simplify the forms for submission of various applications for licencing, shifting, closing, etc of branches.

v. Rationalize some of the existing instructions for ensuring statutory/regulatory compliance.

2. A revised BLP is enclosed for information and strict compliance. The policy will become effective immediately.

3. This supersede the existing instructions issued vide BPD Circular No. 19 dated 16th June, 2004, Circular No.31
dated 5th October, 2004, Circular No.34 dated 2nd November, 2004, Circular Letter No.01 dated 4th January, 2005 and No.04 of 15th February, 2005, BPD Circular Letter No.11 dated 21st March, 2005, and BPRD Circular No. 13 dated 25th August, 2007.

Please acknowledge receipt.

Encl: As above