Microfinance banks (MFBs) are authorized to offer investor portfolio securities (IPS) accounts for their clients
Microfinance Bank (MFB) account holders can open an IPS account with any account to invest in government bonds.
Previously, only individuals and organizations having account at commercial banks can open an IPS account for purchasing government securities.
Investments in government securities are generally safe and attractive and offer higher returns than banks offer on savings accounts
This new procedure offers two options for both ordinary bank account holders and non-branch (BB) bank accounts.
microfinance bank. The first option allows account holders to open IPS accounts with their Micro Finance Bank to purchase Government securities from their own funds.
The second option allows Micro Finance Bank account holder to open IPS account with any other Commercial Bank.
Both options allow MFB account holders to use the funds available in their accounts or Branch Banking / Portfolio investment Account.
The latest version of the SBP Customers’ Digital Onboarding Framework will make it easier to understand and Facilitates the process of opening an IPS account for which the Bank and MFB are authorized to do so with Sharing of KYC customer data with SBP/SECP regulated entities as needed.
Laws and regulations that apply after the consent of the client. These steps will pave the way for Guidance for developing a system to promote large-scale investment in government securities and fully digital SBP is confident that the new measures will help foster a culture of savings as it intensifies.
Latest posts by News Desk (see all)
- Oil Prices down amid Geo-Political Uncertainty - November 1, 2023
- Govt to borrow PKR8.5 trillion in Bond Auction till Jan-2024 - November 1, 2023
- Nishat Chunian Ltd: 1QFY24 profit rises 13 percent to PKR 500mn - October 31, 2023