The State Bank of Pakistan (SBP) has announced new rules for foreign currency deposits to promote a cashless economy. According to the central bank, all foreign currency (FCY) deposits by residents must now be made through account-to-account transfers. This move applies to all exchange companies operating in Pakistan.
Previously, residents could receive foreign currency in cash even when depositing it into FCY accounts. Cash transactions required ID verification, biometric checks for amounts over $500, and mandatory PKR payments for purchases above $2,000. Under the revised regulations, exchange companies are no longer allowed to hand over cash for FCY deposits.
The SBP said the new measure will strengthen transparency, improve traceability, and reduce operational risks for exchange companies. It also enhances anti-money laundering (AML) controls by making the flow of funds easier to monitor. Syed Ali Imran, a banking professional, noted that account-to-account transfers simplify verification of the source and destination of funds.
The policy is also expected to support macro-level monitoring. Clear reporting of FX deposits helps authorities analyze trends, plan policy, and strengthen the banking system. By promoting electronic transfers, the SBP aims to encourage financial inclusion and reduce reliance on cash.
However, experts warn that the transition may pose challenges for individuals without bank accounts. These residents may need to use cross cheques or open accounts to comply with the new rules. The SBP has instructed all exchange companies to fully implement the regulations and ensure staff are aware of the changes.
Overall, the SBP’s new regulations aim to make Pakistan’s foreign currency deposit system more secure, transparent, and efficient. The move aligns with broader efforts to modernize financial systems, protect customers, and strengthen regulatory oversight across the country.
In other related news also read SBP Confirms Cryptocurrencies Are Not Banned
This update is part of the SBP’s ongoing measures to support a formal, traceable, and safe banking environment for all residents.
