The State Bank of Pakistan (SBP) today introduced a major new regulatory framework aimed at safeguarding the rights of financial consumers, mandating stricter rules for fair treatment, data privacy, and transparency across the nation”s banking and payment systems.

This pioneering initiative, titled the ‘Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC and FRF),’ is a key component of the central bank”s Vision 2028. It sets a new benchmark for industry conduct and seeks to foster a more inclusive and resilient financial ecosystem.

The comprehensive guidelines were finalized after an extensive consultative process involving both consumers and representatives from financial institutions. The new rules apply to a wide range of entities, including banks, Development Finance Institutions (DFIs), Electronic Money Institutions (EMIs), and Payment System Operators/Providers (PSOs/PSPs).

The policy is designed to cover the entire product lifecycle, from initial design and pre-sale disclosures to service delivery and complaints handling, ensuring a customer-centric approach throughout all processes.

The framework is structured in two parts, with the first outlining general principles and the second detailing specific obligations under six key pillars. These pillars are designed to embed a culture of fairness and accountability within financial organizations.

The six foundational pillars include: Governance and Oversight, to instill leadership responsibility for fair conduct; Disclosure and Transparency, to empower customers with clear information for decision-making; and Fair Treatment and Business Conduct, to promote equitable and non-discriminatory practices.

Further strengthening protections, the regulations also focus on Data Protection and Privacy to secure sensitive information. Additionally, the policy mandates a robust Dispute Resolution Mechanism for accessible grievance redress and emphasizes Awareness and Capacity Building for both institutions and the public.

The issuance of the BC and FRF represents a transformative step in enhancing business conduct in Pakistan”s financial sector. With these guidelines, the State Bank reaffirms its unwavering commitment to protecting consumer rights and promoting ethical financial operations.