During the Eid Ul Fitr holiday season, the Benazir Income Support Program (BISP) launched a substantial endeavor to improve accessibility and transparency. The initiative, which aims to provide financial support to the most disadvantaged members of society, has increased its payment system from two to six commercial banks. This expansion is expected to assist 9.3 million people through its Kafalat program. Let’s take a closer look at this game-changing move toward financial inclusion and empowerment.
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Banks for Benazir Kafalat Program
Amer Ali Ahmed, Secretary of BISP, made the news during the signing ceremony between the BISP and the appropriate banks. The six banks from which Kafalat recipients will now receive stipends are:
- Telenor Microfinance Bank
- Bank Alfalah
- Mobilink Microfinance Bank
- Bank Afalah, Bank of Punjab
- Bank of Punjab
- Habib Bank Limited HBL Microfinance Bank
Main Features of the Banking Payment System of BISP
- Enhanced Service Coverage: Previously, quarterly stipends were restricted to Bank Alfalah and Habib Bank. Beneficiaries now have better access to financial services thanks to the entrance of six new institutions.
- Cost Savings: According to Secretary BISP, the program expects to save two billion rupees per year as a result of the competition brought about by the new payment mechanism.
- Improved Clusters and Service Provision: The creation of 15 clusters and six banks is intended to simplify service delivery and create a more efficient distribution procedure.
| Topic | Detail |
| Banks for Benazir Kafalat Program | Recipients of Kafalat stipends can now receive payments from six banks: Telenor Microfinance Bank, Bank Alfalah, Mobilink Microfinance Bank, Bank of Punjab, and HBL Microfinance Bank. |
| Main Features of Payment System | – Enhanced Service Coverage: Six new institutions have been added to improve access to financial services. – Cost Savings: The program expects to save two billion rupees per year due to increased competition. – Improved Clusters and Service Provision: 15 clusters and six banks aim to simplify service delivery and distribution. |
Conclusion
The development of the payment mechanism for Benazir Kafalat cash stipends is an important step toward financial inclusion and empowerment of vulnerable populations. BISP’s collaborations with commercial banks seek to promote transparent and effective delivery of financial assistance, eventually contributing to Pakistan’s socioeconomic growth.
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FAQ’s
Which are the six Banks for the Benazir Kafalat Program?
- Telenor Microfinance Bank
- Bank Alfalah
- Mobilink Microfinance Bank
- Bank Afalah, Bank of Punjab
- Bank of Punjab
- Habib Bank Limited HBL Microfinance Bank
How this Expansion will help the poor?
This expansion is expected to assist 9.3 million people through its Kafalat program.
