State Bank to set credit targets for banks to loan differently-abled

KARACHI: The central bank has decided to set credit targets for banks to loan differently-abled individuals by the end of next month in a move to meet the financial needs of the underprivileged segment.

State Bank of Pakistan (SBP) Governor Reza Baqir on Friday said the central bank would set credit targets for banks under relevant SBP’s refinance schemes for differently-abled persons by 31 March 2020.

“Banks are encouraged to provide access to internet banking, debit and credit cards to visually impaired literate persons,” Baqir told President Arif Alvi during a discussion. SBP governor informed the president about the regulatory instructions for the banks by SBP and its own initiatives to address the problems faced by different categories of differently-abled persons and their progress since 2018.

Baqir said various steps have been taken to facilitate people faced with challenges related to upper and lower limb. These steps include providing of preferential treatment/out of queue assistance, construction of ramps at the entrance of existing branches and auto-teller machine (ATM) cabins to allow easy access to special persons and wheelchair users, relaxation in the requirement of biometric verification for account opening, and facilitation desks for special persons at SBP main building and its offices countrywide.

Baqir said the central bank is supporting two credit schemes for the financial inclusion of differently-abled individuals. The first is the small enterprise financing and credit guarantee scheme, which is available to people holding computerised national identity card with a special logo/symbol for setting up new business enterprises or for expansion of existing ones at a subsidised financing rate of 5 percent per annum for the tenor of 5 years, including grace period of up to 6 months.

The second is financing facility of low-cost housing for special segments, which provides subsidised financing at 5 percent per annum, for the tenor of 12.5 years including grace period of up to 6 months.

SBP governor said the State Bank would undertake annual accessibility audit under the already issued guidelines for facilitation of differently-abled persons to enhance the compliance on the instructions.

“SBP will issue circular to banks to ensure accessibility facilities for differently-abled persons at all new branch premises and ATM cabins,” he said. “SBP will also issue circular to banks to make available forms/terms and condition document in braille for basic banking services.”

Alvi urged the banking sector to come up with some innovative workable ideas and plans to economically empower this particular segment of society, particularly the women among them.

Further, he urged the banks to play their role in training and capacity building, apart from making efforts in provision of financial services and access to finance for differently-abled individuals.

Senior officials of the SBP, presidents and CEOs of banks and representatives of Network of Organizations Working for People with Disabilities, Pakistan attended the roundtable discussion.