Karachi, May 16, 2012 (PPI-OT): State Bank of Pakistan (SBP) has decided to implement International Bank Account Number (IBAN) standard in Pakistan in order to bring about account code standardisation and efficiency in processing of payments for domestic and cross‐border transactions.
According to Alfalah Securities Limited, IBAN is an international standard for identifying bank accounts across national borders with a minimal risk of propagating transcription errors thus bringing more efficiency in the cross‐border transactions transfer, including remittances sent by overseas Pakistanis from IBAN‐compliant countries and it would also result in facilitation of domestic electronic transfers. IBAN concept was developed by the European Committee for Banking Standards (ECBS) and International Organization for Standardization (ISO) and is an internationally agreed standard (ISO 13616‐1:2007) for identifying bank accounts. To implement IBAN, all the banks would generate and notify IBAN to all their customers by December, in the initial phase. In the second phase, the IBAN account numbers will be operationally used (capturing, recognition, processing, validation, transfer) both for domestic, as well as for international financial transactions by June 2013.