Regulatory Alerts2025-10-17 | BPRD Circular No. 04Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF)
The State Bank of Pakistan has issued the Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF) to consolidate, strengthen, and align existing financial institution guidelines with international best practices. The framework takes immediate effect for all financial institutions except electronic money issuers, which must comply by January 1, 2026, alongside a delayed governance oversight provision. It supersedes numerous prior circulars, mandates strict adherence to responsible conduct standards, and enforces punitive measures for non-compliance.
Circulars/Notifications - Banking Policy & Regulations Department
BPRD Circular No. 04 of 2025
October 17, 2025
The Presidents/ Chief Executives All Banks/MFBs/DFIs/DBs/EMIs/PSOs/PSPs
Dear Sir/Madam,
Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF )
State Bank of Pakistan (SBP) has undertaken a comprehensive exercise with the aim , inter alia, to streamline existing regulatory instructions regarding business conduct and Fair Treatment of Consumers (FTC) regime, to strengthen it and align it with best international market practices. In pursuance of this exercise, existing regulatory instructions / guidelines - issued vide various circulars / circular letters – have been reviewed, updated, strengthened, where necessary, and consolidated into a single framework - “Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF)”
for Financial Institutions (FIs).
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The BC&FRF shall become effective immediately for FIs (excluding EMIs) except Pillar-1 of Part II on “Governance & Oversight” which shall become effective from January 01, 2026. Further, this framework shall become effective for EMIs from January 01, 2026. The BC&FRF shall henceforth serve as the governing framework for ensuring responsible business conduct & FTC in FIs. However, this shall not retrospectively affect the applicability of earlier circulars and/or decision undertaken with reference to these.
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Pursuant to the issuance of this framework, the circulars / circular letters listed at Annexure-A of the framework, stand withdrawn/superseded. Additionally, a comparative table, detailing all instructions of earlier circulars / circular letters, whether in their original or revised / updated form, has also been enclosed at Appendix of the framework for ease of FIs.
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The FIs are advised to ensure meticulous compliance with the BC&FRF, failing which shall attract punitive action under relevant provisions of the applicable laws.
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Please acknowledge receipt.
Enclosed:
Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF)
Annexure-A : List of Circulars / Circular Letters withdrawn / superseded
Appendix : Comparative Sheet
Yours truly ,
Sd/-
(Ghulam Muhammad) Director