The IBAN or International Bank Account Number is a system of identifying Bank Accounts internationally to facilitate the processing of cross boarder financial transactions.
IBAN consists of up to 24 alphanumeric characters, including country code, check digits, branch identifier and local bank account number. This system has been adopted and implemented in many countries since 1997.
State Bank of Pakistan has advised all financial institutions, time and again, to use IBAN instead of Basic Banking Number for foreign as well as home remittances.
However only a minor percentage of bank customers know what actually IBAN is, let alone the people who use it for domestic or international transactions.
In view of the current level of customer awareness about IBAN, State Bank has now decided that usage of IBAN will made compulsory in PRI Home Remittances in the fields of Annexure-B & C shall be implemented by 31st December 2016 .
Pakistan Remittance Initiative member banks are advised to take all necessary steps for conveying IBAN to their respective customers.
State Bank said that all commercial banks are required to create awareness about IBAN usage among their customers especially with regard to home remittances.
Banks are also advised to take up the matter with their tie-ups for encouraging remitters to use IBAN.