Regulatory Alerts2022-12-28
Added · Updated
Circular No. 45 of 2022 – Requirements for NBFCs engaged in Digital Lending
The Securities and Exchange Commission of Pakistan imposes comprehensive requirements on Non-Banking Finance Companies conducting digital lending via mobile applications, mandating full disclosure of loan terms, pricing, and privacy policies before disbursement. The rules prohibit unfair collection practices, restrict data access to non-essential device information, require a 24-hour cooling-off period, and enforce strict cybersecurity standards including local data storage and biometric verification. Compliance deadlines are set at seven days for disclosure and grievance clauses, ninety days for app operational requirements, and one year for data localization, with non-compliance attracting penal provisions under the Companies Ordinance, 1984.