Cumbersome New Account Opening Procedure for Company Account has been Rationalized
|Reform Description||Before: The bank account opening process involved manual verification from Security and Exchange Commission of Pakistan (SECP) which used to take 30-40 days. This procedural bottleneck delayed the bank account opening for the corporate consumers and legal persons such as companies registered with SECP.
After: Now, on the filling of request for Corporate Account opening, any commercial bank can obtain the requisite verification from SECP through SECP’s Virtual Portal which is integration with all the commercial banks.
|Jurisdiction/ Location||Federal (Entire Pakistan)|
|Department||State Bank of Pakistan (SBP), Security and Exchange Commission of Pakistan (SECP)|
|Date of Implementation||30-11-2021|
|Timeline||Last 03 Months|
|Details||Difficulty||In order to open a corporate bank account the commercial banks were required to get the documents verified from SECP. However, without any online system for information exchange between the SECP and commercial banks the manual process of verification took almost 30-40 which hindered the business operation and caused unwarranted delay.|
|Analysis||After learning the administrative and legal requirements it was realized that this delay can be addressed by means of electronic data exchange between SECP and commercial banks.|
|Solution||Accordingly, SECP has introduced an online portal through which the commercial banks can get the documents verified in real time thus cutting the time required significantly.|
Annexure II on page No. 38 of the attached document states the required documentation for opening of bank account. As of January, 2022 some 40 financial Institutions including commercial banks have been using the SECP’s virtual portal to verify the documents for Corporate Account opening and a total of 8230 companies have been accessed by the banks.
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