Covid-19 Measures by SBP

We have introduced measures to fight the spread of Coronavirus (COVID-19) through the financial system by increasing awareness among staff and customers and banks, and issued detailed directives to ensure the availability of uninterrupted financial services to bank customers.

SBP is continuously engaged with the industry to understand issues and challenges and formulate a policy response accordingly. In this vein, SBP conducted a flash survey covering all banks, Development Financial Institutions (DFIs) and Micro Finance Banks (MFBs). The survey results show that the industry has started to take preventive measures to limit the adverse repercussions of COVID-19. However, the results also indicate diversity among the industry participants in terms of their readiness to handle any worst-case scenario.

Banks/DFIs/MFBs were advised to adopt the following measures to help fight the spread of COVID-19 to ensure availability of uninterrupted financial services:

• Create awareness amongst the banks/DFIs/MFBs' staff and customers regarding COVID-19;
• Implement the guidelines issued by the World Health Organization, the Government of Pakistan and the Provincial Governments, in letter and spirit, to ensure the safety and health of employees and cleanliness at the workplace;
• Take precautionary measures such as enhanced usage of cash counting machines, encouraging customers to use Alternate Delivery Channels (ADCs) etc. to reduce contact with currency notes and other financial instruments. Further, make elaborative arrangements to provide uninterrupted financial services through ADCs (e.g. ATMs, online banking, transactions through call centers etc.);
• Reassess Business Continuity Plans (BCPs) in the existing situation and develop suitable remedial plans, including allocation of human and other resources, for their effective implementation;
• Carry out an impact analysis to assess the consequences on business and operations and enhance the monitoring frequency of key risk areas like credit, capital market and foreign exchange exposures; and
• Reach out to the key payment and settlement system partners such as NIFT, 1Link, NCCPL and CDC to ensure continued availability of their services.

In order to implement the above instructions and take other necessary measures, banks/DFIs/MFBs' have been advised to form a senior level committee to ensure that the responses towards risks arising out of COIVID-19 are robust and adequate.

Continuous availability of ATMs

will be ensured by keeping them up and running 24/7 by the banks. Banks' call centers and helplines must also be operative 24/7 and timely resolution of the complaints shall be ensured.

Critical functions and systems of banking to remain available

All critical functions and systems required to provide banking services, including Real Time Gross Settlement System (RTGS) will remain available as usual even during the lock downs. Large scale closure of branches may cause rush and congestion in the operative branches, which may be counterproductive to efforts to contain the spread of the disease. The banks may, however, close branches where staff is infected and for which requisite human resource is not available. The situation will be reviewed again in couple of days based on the customers' visit to branches during lock downs.

Minimal staff at banks

SBP, from Mar 24, 2020, has invoked a scenario wherein minimal staff will be present at its premises to undertake critical functions, whereas the rest of the staff has been allowed to work from home. The Banks can also make such arrangements both in their branches and Head/Regional offices. Further, the banks may start their branch operations from 10 a.m. if needed to better facilitate their clients.

Circulars:

• bprd/2020/CL8
• bprd/2020/CL16
• bprd/2020/CL17
• bprd/2020/CL18
• bprd/2020/CL24
• bprd/2020/CL32
• bprd/2020/CL33

NADRA Verisys in place of Biometric Verification (BMV)

On December 31, 2020, SBP extended the validity of utilizing NADRA Verisys in place of Biometric Verification (BMV) along with other measures for verification purpose until June 30, 2021. Earlier, the deadline was December 31, 2020. However, after the lapse of this timeline, MFBs shall resume biometric verification with revised timelines of July 31, 2021 and September 30, 2021 for customers assigned medium and normal priorities, respectively. MFBs were encouraged to introduce electronic account opening forms/ other forms along with electronically acquiring and keeping on record information required under AML/ CFT Regulations for MFBs.

Circulars:

• acd/2020/CL3
• acd/2020/CL6
• acd/2020/CL32
• acd/2020/CL52

Clearing of cheques made easier and faster

In a bid to limit person-to-person interactions and to provide ease of services to the customers, in the backdrop of COVID-19, Banks and MFBs are allowed to provide Direct Cheque Deposit Facility under which a crossed cheque may be presented by payee/beneficiary directly into paying/drawee bank, instead of their bank branches as per existing practice. In this way funds may be transferred by the paying/drawee bank either through RTGS of Interbank fund transfer functionality. Moreover, Banks/MFBs may also make arrangements to collect cheque from registered addresses of their customers upon their request or customers may drop their cheques in drop boxes of their Banks, installed in selected branches.

In case of complete lock down, Corporates/Priority customers of banks may send the scanned image of their cheque along with relevant details of the beneficiary either through registered emails or through mobile applications of their banks to push funds from their accounts to the payee bank. However, banks are encouraged to implement additional risk mitigation measures as per their internal policies while offering these services to their customers. Banks/MFBs may also make arrangements with the Clearing House (NIFT) for clearing their cheques through Image Based Clearing (IBC) functionality as per the agreed SOPs between NIFT and banks.

Banks to adopt more robust cybersecurity measures

Only authorized users of financial institutions will access internal IT resources. They will also ensure that heir cybersecurity policies cater to risks of spying, interception, and modification.Banks have also been tasked to establish dedicated Cyber Threat Intelligence Units (CTI-U) and Emergency Response Teams (ERTs) to minimize and control the damage resulting from cybersecurity incidents. They will also exercise caution in handling emails with suspicious/work-related subject line, attachment, or hyperlink especially those related to recent phenomenon related to COVID-19.

Availability of helpline & warning against fraudsters calling for personal information

We have taken additional measures to facilitate bank customers that are faced with extraordinary challenges amid COVID-19 situation. They can now approach SBP Helpline at 021-111-727-273 if their queries or complaints are not being responded by banks.

We have also advised the banks to protect their employees and customers and ensure work place safety by implementing guidelines of World Health Organization, Government of Pakistan and the Provincial Governments in letter and spirit. In case bank employees and customers still face difficulties or have concerns over safety arrangements, they may bring this to our notice by emailing at [email protected]

Furthermore, public is advised not to disclose any personal or account information about their bank accounts or credit/debit cards on incoming calls or messages by fraudsters citing situation under COVID-19. Details of such calls or messages may be reported to SBP Helpline at 021-111-727-273 or emailed at [email protected]