The State Bank of Pakistan (SBP) has introduced a new framework that allows teenagers to independently open and manage bank accounts and digital wallets. This initiative aims to enhance financial inclusion by empowering young individuals to handle money securely, conduct transactions confidently, and develop responsible financial habits early on.
Notably, the SBP’s framework facilitates easier access for teenagers to the formal banking system, encouraging their active participation in the economy. It also addresses a longstanding gap within Pakistan’s financial sector by targeting the 13 to 18-year-old age group.
Eligibility for this program is limited to resident Pakistani teenagers between the ages of 13 and 18. The framework applies to all banks, microfinance banks (MFBs), and electronic money institutions (EMIs), allowing accounts to be opened either individually or jointly. Accounts will be maintained in local currency (PKR) and can receive foreign remittances in PKR. By default, these accounts will be savings accounts.
Account opening can be completed either in person or remotely through digital channels. The process is designed to be swift, with accounts opening instantly upon meeting requirements or within a maximum of two working days. Applicants receive a tracking number to monitor their application status.
For identity verification and Know Your Customer (KYC) compliance, teenagers must undergo biometric verification or NADRA ID checks. Parents or guardians are subject to Customer Due Diligence (CDD) requirements, including indemnity, declaration of fund sources, name screening, risk profiling, and transaction monitoring in line with SBP’s Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regulations.
The accounts offer value-added services such as physical or virtual debit cards and online or app-based banking. However, cheque books and negotiable instruments are not provided, and credit or overdraft facilities are excluded.
In a significant development, these teenage accounts or wallets will automatically convert into regular accounts upon reaching adulthood, provided regulatory criteria are met, ensuring continuity and sustainability of financial services for young customers.
