SMED Circular No. 10 (guidelines for commercial banks to undertake microfinance business)


(enacted in 2006)

Guidelines for Commercial Banks to Undertake Microfinance Business, issued as Annex A under SMED Circular No. 10 by the State Bank of Pakistan, provides guidelines for commercial banks to provide microfinance services under four different modes:

  • Mode 1 – Microfinance counters at existing branches;
  • Mode 2 – Standalone microfinance branches;
  • Mode 3 – Establishing independent microfinance banks as subsidiaries of banks; and
  • Mode 4 – Developing linkages with microfinance banks and microfinance institutions.