Digital banking and wallet users warned of possible disruptions from October 25. The warning comes as new regulations from the State Bank of Pakistan (SBP) come into effect, requiring mandatory biometric verification for all account and wallet holders.

The rules were introduced through BPRD Circular No. 1 of 2025, which the SBP issued on July 25. These regulations aim to streamline the process of account opening and customer onboarding for all institutions regulated by the central bank. This includes banks, digital banks, microfinance banks (MFBs), development finance institutions (DFIs), and electronic money institutions (EMIs).

Digital Banking and Wallet Users Warned of Possible Disruptions from October 25 – Here’s Why

According to the circular, all SBP-regulated entities must ensure that biometric verification becomes the primary verification method for both new and existing customers. Previously, customers were given up to 60 days to complete biometric verification before any debit restrictions were placed on their accounts.

From October 25, this 60-day grace period will no longer apply. Users who have not completed biometric verification could lose access to their accounts or wallets until the process is completed.

Industry sources have expressed concern that millions of account holders might be affected. Many users, especially those holding foreign currency or Roshan Digital Accounts, may also face temporary restrictions on sending or receiving remittances if their verification remains incomplete.

Financial institutions were given three months to comply with these new regulations. The changes are part of the SBP’s broader efforts to strengthen Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) measures.

The SBP’s updated framework, known as the “Consolidated Customer Onboarding Framework”, expands the scope of verification requirements. It applies to both in-branch and remote onboarding for all individual and business accounts, including local and foreign currency accounts.

Unlike the previous system introduced in 2022, which allowed the use of NADRA Verisys for initial verification and biometric completion within 60 days, the new framework makes biometric verification mandatory before account activation.

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In simple terms, customers must now complete biometric verification upfront before they can open or operate any digital or physical account. This applies to individuals using CNIC, NICOP, POC, ARC, or POR cards.

The SBP says this step will improve customer security and trust in Pakistan’s digital banking system. However, users are being urged to complete their biometric verification immediately to avoid service disruptions.

With digital banking and mobile wallets becoming increasingly popular across Pakistan, these new rules mark a major step towards a more secure and transparent financial system. But until customers update their verifications, many may face temporary inconveniences starting October 25.