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