ISLAMABAD: The State Bank of Pakistan (SBP) this week rolled out a new framework allowing teenagers to independently own and operate bank accounts and digital wallets, saying its move was part of efforts to promote financial inclusivity in the country.
In a press release issued on Wednesday, the SBP said the framework will address a “critical gap” in Pakistan’s financial landscape. It mentioned that while overall account ownership in Pakistan has risen to 67 percent of the country’s adult population, teenagers have largely been confined to joint or parent-controlled accounts.
“With around 26 million Pakistanis between the ages of 13 to 18 years, this framework is an effort for nurturing a generation that is financially literate, digitally adept and capable of driving future growth,” the central bank said in its statement on Wednesday.
As per the new framework, teenagers will be able to manage their accounts and wallets directly. The account or wallet will be opened in the name of the applicant, individually or jointly, and will be opened in the local currency only.
The account will be allowed to receive equivalent Pakistani rupees to foreign remittances, the SBP said, adding that it will be a savings account by default unless otherwise requested by the teen applicant.
The teenager’s account or digital wallet will be bundled with physical and/or virtual debit cards while online and Internet or app-enabled banking will also be offered with it.
However, the SBP clarified it will not issue cheque books or other negotiable instruments to teen applicants; neither will they be extended credit or overdraft facilities.
“By empowering teenagers, Pakistan is building a stronger, and financially literate youth having capacity to independently and effectively access a variety of financial services being offered by banks and financial institutions,” it said.
