Islamabad: The State Bank of Pakistan enforces mandatory biometric verification for all digital wallets such as easypaisa, jazzcash etc. Millions of account holders risk service interruptions if they fail to comply with the new regulations.
The SBP’s updated framework, issued through BPRD Circular No. 1 of 2025, requires all regulated entities including commercial banks, digital banks, microfinance banks, development finance institutions (DFIs), and electronic money institutions (EMIs) to adopt biometric verification as the primary method of customer identification. The move aims to enhance transparency, reduce fraud, and strengthen anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.
Who Is Affected
The new rules affect a broad spectrum of account holders, including:
- Users of popular digital wallets such as Easypaisa and JazzCash
- Holders of Roshan Digital Accounts, particularly overseas Pakistanis
- Customers with foreign currency accounts
- Clients of microfinance and digital banks
Millions of Pakistanis who have not yet completed the verification process could temporarily loose access to their digital wallets. Customers managing foreign currency accounts may face particular disruptions in sending or receiving remittances.
Verification Process and Deadlines
Under the 2025 framework, biometric verification is now required at account activation, unlike previous guidelines where a 60-day grace period was allowed post-account creation. Customers must complete verification via their banks’ mobile apps, ATMs, or in-branch kiosks. This can be done by scanning their Computerized National Identity Card (CNIC) and matching the data with the National Database and Registration Authority (NADRA). Confirmation messages are sent to users upon successful verification.
Consequences of Non-Compliance
Failure to comply will result in immediate suspension of accounts and digital wallets. Affected users will be unable to:
- Transfer funds
- Pay bills or make mobile top-ups
- Withdraw money from ATMs
- Access Roshan Digital or foreign currency accounts
In certain cases, accounts may remain frozen until verification is completed in person or through approved channels.
Implications for Pakistan’s Financial Ecosystem
The SBP views mandatory biometric verification as a crucial step toward securing Pakistan’s digital financial environment. By standardizing due diligence and onboarding processes across all regulated entities, the central bank aims to create a safer, more transparent, and compliant banking system. Customers who have not yet verified their accounts are strongly urged to complete the process promptly to avoid service disruptions.
The SBP granted financial institutions a three-month window to implement the new requirements, marking a significant shift in Pakistan’s approach to digital banking security and compliance.
Clarification Regarding Cooling Period of Funds in Digital Wallets
In response to recent social media discussions, the State Bank of Pakistan (SBP) has clarified that all digital fund transfers are processed in real time, with beneficiaries receiving funds almost instantly. The widely discussed “two-hour cooling period” applies only to the usage or cash-out of funds from branchless banking wallets and accounts. While funds are credited immediately, customers must wait two hours before making cash withdrawals, online purchases, or mobile top-ups.
Introduced in April 2023 as part of customer due diligence measures, the cooling period was designed to reduce the risk of fraudulent transactions, allowing sufficient time for users to report any suspicious activity. According to the SBP, the measure has functioned smoothly over the past two and a half years and remains an effective safeguard against fraud.
