An announcement on Monday noted that the Regulatory Approval System (RAS), an effort of end-to-end digitalization of the regulatory approval process, will be built upon going forward with the RAS.
A new module on banking policy and regulations has been launched by the State Bank of Pakistan (SBP), marking yet another significant milestone in the institution’s history.
With the introduction of this module in RAS, banks, development finance institutions (DFIs), and microfinance banks (MFBs) will be able to submit their request letters/proposals to the SBP’s Banking Policy and Regulations Department through a dedicated online portal, and the SBP will be able to disseminate the regulatory decisions to them through the same portal after they have been digitally processed.
Dr. Reza Baqir, Governor of the SBP, had previously announced the launch of the SBP FX RAS, which would allow for the complete digitization of the foreign exchange-related case submission procedure. As a result, the system proved to be a major success, as it allowed consumers to submit their forex-related demands from the comfort of their own homes, saving them important time that would have been spent traversing the paper-based processes earlier. It also made it possible for banks to submit forex-related cases for regulatory approval to the SBP and the SBP-Banking Services Corporation over the internet.
Starting on November 24, 2021, the implementation of the RAS for banking policy and regulation-related problems will be fully operational. It will allow banks, DFIs, and MFBs to submit their requests online and get regulatory judgments through a single point of contact, thereby streamlining the regulatory process.
Nonetheless, in addition to online submission, banks, DFIs, and MFBs will continue to submit their cases via manual submission, which will be phased out after a brief transitional period until December 31, 2021.
The SBP’s Resource Allocation System (RAS) is expected to conserve valuable resources, contribute to the SBP’s green banking effort, and improve the efficiency of communication between the banking industry and the SBP through the deployment of the RAS.
Furthermore, this arrangement will eliminate the need for paper-based submissions, which are prone to logistical and storage problems, as well as causing accidental and unneeded delays for the parties involved.
RAS is a regulatory project launched by the central bank as part of its Vision 2020 strategy, with the goal of increasing the digital flow of information among stakeholders in order to improve service standards by leveraging digital technologies.