PPT-SAP policies and products of state bank of pakistan

2. Agenda
• Financial Inclusion & Literacy
• Subsidized Schemes of SBP & GOP
• Banking On Equality
• Banking on Equality Policy Pillars
• Question/ Answers

3. Financial Inclusion & Literacy
• Financial inclusion is the availability and equality
of opportunities to access financial services.
• It refers to a process by which individuals and
businesses can access appropriate, affordable,
and timely financial products and services which
include banking, loan, equity, and insurance
products.
• Financial literacy is the possession of skills,
knowledge, and behaviors that allow an individual
to make informed decisions regarding money.
• Knowledge of how to make smart decisions with
money.

4. Financial
Inclusion &
Literacy Booklet
https://drive.google.com/file/d/1mdBzfQ72sTF
MM6ArXuARTyaZtS0s2R_A/view?usp=drivesdk
Drive Link:

5. SME Loan Schemes

6. 1. Refinance Facility for Modernization of SMEs
2. Refinance & Credit Guarantee Scheme for Women
Entrepreneurs
3. Refinance Scheme for Working Capital Financing of Small
Enterprises and Low-End Medium Enterprises
4. SME Asaan Finance Scheme (SAAF)
SBP Incentive & Refinance Schemes

7. Refinance Facility for Modernization of SMEs
Brief Description For purchase of new local/ imported plant and machinery for
the BMR of existing SMEs or for setting up new SME units and
for the purchase of new generators of up-to 500 KVA
Features 1) Financing available only against LC in case of purchase of
imported plant and machinery
2) Financing available to the extent of C&F value of imported
new plant and machinery and ex-factory/ show room price of
local plant and machinery
3) Financing shall not be available for the purpose of
acquisition of land, construction of building etc.
Rate of Mark up End user rate is 6% out of which 4% is bank’s share
Financing tenor Maximum financing tenor is 10 years with maximum grace
period of six months.

8. Small Enterprise (SE) Financing & Credit
Guarantee Scheme for Special Persons
Brief Description Special persons holding CNIC with disability
logo/symbol will be provided finance for setting up
of new business enterprises or for expansion of
existing ones
Rate of Mark up End user rate is 5% that entirely goes to banks. SBP
refinance rate is 0%.
Maximum Financing
Amount
Rs 1.5 million
Financing tenor Maximum financing tenor is 5 years with maximum
grace period of 6 months
Risk Coverage 60% of outstanding principal

9. SBP Refinance Schemes for SMEs-summarized
Scheme Financing Limit
Mark-
Up
(%)
Maximum
Tenor
(Years)
Refinance Facility for Modernization of SMEs
•Up to Rs. 25 Million for SEs
•Up to Rs. 200 Million for MEs
6 10
Refinance Scheme for Working Capital
Financing of Small Enterprises and Low-End
Medium Enterprises
•Up to Rs. 25 Million for SEs
•Up to Rs. 50 Million for MEs
6 1
Refinance and Credit Guarantee Scheme for
Women Entrepreneurs
Up to Rs. 5 Million 5 5

10. SME ASAAN FINANCE SCHEME
Loan Size Existing Risk Coverage by banks Revised Risk Coverage by banks
Up to 4M 60% 50%
Above 4M and up to 7M 50% 40%
Above 7M and up to 10 M 40% 30%
Banks Margin
Banks Margin 8% 6%
SBP Refinance Rate 1% 3%
END user Rate 9% 9%

11. 11
Prime Minister's Youth Business & Agriculture
Loan Scheme (PMYB&ALS)
Sr. No. Particulars Key Features
1 Eligibility Criteria
• All men/women holding CNIC, aged between 21 and 45 years with
entrepreneurial potential are eligible. For IT/ E-Commerce related
businesses, the lower age limit will be 18 years.
• Small enterprises (startups and existing businesses) as per definition of
SBP and owned by youth as per above mentioned age brackets are also
eligible.
• For IT/E-Commerce related businesses, at least matriculation and/or
experience of at least six months.
2 Loan size
Size of the loan is segregated into two tiers, as under:
Tier 1 (T1) loans- Up to Rs. 0.5 Million at 0% markup
Tier 2 (T2) loans- Above Rs.0.5 million and up to Rs. 1.5 million at 5%
markup
Tier 3 (T3) loans- Above Rs.1.5 million and up to Rs.7.5 million at 7%
markup
3 Loan type Working capital loans and term loans
4 Loan Tenor
Up to 3 years for Tier 1
Up to 8 years with maximum grace period of up to one year.

12. SBP Digital Initiatives
 Asaan Mobile Account (AMA)
The AMA platform has been launched under the National
Financial Inclusion Strategy (NFIS) that aims to facilitate
general masses, especially the low income segments, to
digitally open their BB accounts and use the available
financial services in a swift, easy and affordable manner.
 RASST (Instant, Free of Cost)
RASST ID is a simple identifier (currently mobile number)
that you link with your bank account. Instead of sharing
bank account numbers, you can now share your RASST ID
with others and start receiving funds in your linked
account.

14. Asaan Mobile Account
https://www.youtube.com/watch?v=UAzgIdp4d4Q

15. https://www.youtube.com/watch?v=wRZC0M1d-K0

17. Banking On Equality?
• Banking on Equality Policy is a landmark policy by State Bank
of Pakistan (SBP), to reduce the gender gap in financial
inclusion by bringing a shift towards women friendly business
practices in the financial sector.
Women Population in Pak 119 M

18. Significance of Gender focus in Financial Inclusion
• Equivalent opportunities for all genders to access and take part in all financial
endeavors are critical for in any country sustainable and inclusive economic
growth
• Better opportunities for women to earn and control income could contribute to
broader economic development in developing economies through higher levels
of school enrollment for girls, improved productivity of female-owned
companies, and raised potential of economic growth.
(Women, Work, and the Economy: Macroeconomic Gains From Gender Equity, IMF)
• Ultimately, a country’s success to empowering its citizens rests on a gender*
responsive approach in its public policy management and implementation,
including its financial policies. (Women’s Economic Empowerment, OECD 2011)
Social
Economic
Commercial
*Includes men, women, and trans-genders

19. Social norms, cultural barriers and lack of husband’s
permission, limit women’s access to financial services
Low Financial Literacy & awareness of loan requirements
Most rural women in agri areas can’t meet collateral
requirements due to lack of land ownership (SDPI Research)
Women are 37% less likely to own a mobile phone due to low
literacy skills and family’s disapproval (GSMA 2019)
Male agents create a barrier to entry for women’s adoption
of DFS
Women in rural areas are not encouraged to obtain CNIC 45%
of CNIC holders are women
Women avoid going to bank branches as they feel intimidated
Gender neutral approach in product development, service
offerings, customer acquisition and facilitation
Women, are considered high-risk and challenging clients by
commercial banks due to KYC requirements (especially
widows), AML/CFT concerns, and loan recovery concerns
Banks have limited understanding of new businesses started
by women.
Lack of gender balance in bank staff, and BB agents
(as of December2021)
Marketing strategies largely don’t address women’s needs,
which discourages them from approaching banks
Lack of non-financial advisory services or awareness
campaigns for women
Demand and Supply sides Barriers
Demand Side Supply Side

20. Banking on Equality Webpage on SBP:
https://www.sbp.org.pk/BOE/Index.html
BOE Policy Circular

21. 21
• Increase women’s ratio
in financial sector to
20% by 2024
• Women agents to 10%
by 2024
• Create Dedicated
Women’s Financial
Services Department
• Reach 20 million
unique active adult
women accounts
• Women Champions at
75% of all bank touch
points by 2023.
• Gender Sensitivity
Trainings for all staff
• Wide and deep
scope of Gender
data reporting
• Financing targets
• Governor led forum for
progress monitoring and
future women policies
• Women-friendly
certification/ awards for
banks
Banking on Equality Policy Pillars

22. Applicability/Scope
This policy shall be applicable on :
• Commercial Banks
• Islamic Banks
• Microfinance Banks (MFBs)
• Development Financial Institutions (DFIs)
• Electronic Money Institutions (EMIs)
Collectively referred as Financial Institutions (FIs)

23. Measures to Enhance Gender Diversity
2.1. Comprehensive Policy
FIs will develop a duly approved comprehensive policy covering
strategies :
• To ensure gender diversity
• To encourage women’s employment rate
• To improve representation of women in senior management
• To Set gender diversity action plans and targets in the KPIs
• To combat workplace harassment
• To enhance women’s access/use of FIs' products & services

24. 2.2. Governance
FIs shall:
• Have at least One Female independent Director in BOD
• Have Management Sub Committee on gender
• Set up a specialized dedicated Women's Financial Services
Department

25. Trainings and Capacity Building of FIs' Staff
Impart gender sensitivity training to all staff members
The training must include appropriate contents e.g. :
• To improve the workplace environment
• Whistleblowing policy
• Effective marketing approaches
• Key features of FIs' products & services including SBP and
Government schemes

26. Financial Literacy and Mass Awareness
The FIs shall :
• Conduct women's financial literacy
• Invest in digital initiatives
• Appoint brand ambassadors
• Formulate a female marketing team
• Create tab/section of "Women Financial Services"

27. Question/ Answers

28. Thank you