Apex Financial Regulator Details Court Supervised Settlement Process for Digital Lending Platforms

The Securities and Exchange Commission of Pakistan has issued a public notice outlining a court-supervised process for borrowers of the UdharPaisa and Barwaqt digital lending apps to settle outstanding loans and have their credit histories updated. This mandatory directive establishes a transparent and lawful framework for credit resolution following a period of regulatory scrutiny surrounding the operations of consumer financing applications. The notice follows orders of the Islamabad High Court, under which M/s. Microcred Financial Services Limited, which operated UdharPaisa, and M/s. Seedcred Financial Services Limited, which operated Barwaqt, are being managed through court-appointed liquidation oversight. To head this formal corporate unwinding, Advocate Syed Ishfaq Hussain Shah has been appointed as Official Liquidator for both companies through separate orders dated December 24, 2025.

Under this legal framework, borrowers of both UdharPaisa and Barwaqt can still settle outstanding loans and restore their credit records, but only through officially designated bank accounts and court-supervised procedures. For borrowers who obtained loans through the UdharPaisa loan app under Microcred Financial Services Limited, the official payment instructions require individuals to first obtain comprehensive credit reports from Tasdeeq Information Services Limited and DataCheck Limited. Upon receiving these documents, individuals must identify the higher outstanding amount reported and deposit that exact payment into the official Microcred account at Bank Makramah Limited. The specific banking details require funds to be sent to the account title M/s. Microcred Financial Services Limited In Liquidation, utilizing account number 0418586002000323 or International Bank Account Number PK48BMLP0418586002000323.

Crucially, the regulatory authority highlights that payments are only accepted through physical bank branches, meaning that mobile wallets, digital apps, and online transfers are not allowed. Borrowers must complete deposit slips with their Computerized National Identity Card number, name, contact details, and the clear purpose of payment, making sure to keep a stamped receipt as proof. After payment, the Official Liquidator will share updated information with credit bureaus within four weeks to reflect loan settlement in the borrower’s credit history. To finalize the verification, borrowers must also email supporting documents, including a CNIC copy, deposit receipt, and credit reports, to liquidatormicrocred@gmail.com.

A mirroring legal process has been established for individuals clearing Barwaqt loans under Seedcred Financial Services Limited. Borrowers must obtain credit reports from Tasdeeq Information Services Limited and DataCheck Limited, depositing the higher outstanding amount reported into the official Seedcred account at Bank Makramah Limited. The designated details for this entity are account title M/s. Seedcred Financial Services Limited In Liquidation, account number 0418586002000321, and International Bank Account Number PK05BMLP0418586002000321. Just like the sister company, all payments must be made at Bank Makramah Limited branches across Pakistan, and digital payments, mobile wallets, or online transfers are strictly not accepted. Borrowers must correctly fill in deposit slips with personal details and retain stamped receipts as proof of payment. After repayment, the Official Liquidator will submit updated settlement data to credit bureaus within four weeks for credit history updates related to Seedcred Financial Services Limited, and borrowers must email their repayment details and documents to liquidatorseedcred@gmail.com.

The regulatory announcement concludes with a strict warning meant to protect the public from fraudulent collections during this transition phase. The notice emphasizes that no individual, agent, or third party is authorized to collect payments or handle assets on behalf of either company. Only the Official Liquidator, operating under the direct supervision of the Islamabad High Court, is legally permitted to manage recoveries. The commission explicitly states that any payments made outside the designated accounts will not be recognized for credit clearance, placing the responsibility on consumers to follow the court-mandated repository protocol precisely to secure their financial clearance.

Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem. 

Hot this week

Swich Encourages Fintechs To Apply For SBP Regulatory Sandbox As Second Cohort Accepts Applications 

Swich reflects on its participation in the State Bank of Pakistan’s first Regulatory Sandbox cohort and encourages fintechs to apply for the second round.

Easypaisa Digital Bank Opens Weave Together 2026 Applications For Persons With Disabilities

Easypaisa Digital Bank has opened applications for Weave Together 2026, its diversity and inclusion programme supporting career opportunities for persons with disabilities.

PSX Trains 80 Government Girls College Principals To Promote Financial Literacy And Investing

Pakistan Stock Exchange and Sindh’s College Education Department trained 80 principals in Karachi to promote financial literacy and investment awareness among students.

Bank Alfalah Partners With Climate Finance Accelerator Pakistan To Expand Funding Opportunities For Climate-Focused Businesses

Bank Alfalah and Climate Finance Accelerator Pakistan have signed an MoU to connect investor-ready climate businesses with commercial capital and financial institutions.

Mobilink Bank Hosts PVARA Chairman for Discussion on Virtual Assets Regulation and Digital Finance Opportunities

Mobilink Bank’s Learning Fest 2026 hosted PVARA Chairman Bilal Bin Saqib for a discussion on virtual asset regulation, licensing and digital finance in Pakistan.

Topics

Swich Encourages Fintechs To Apply For SBP Regulatory Sandbox As Second Cohort Accepts Applications 

Swich reflects on its participation in the State Bank of Pakistan’s first Regulatory Sandbox cohort and encourages fintechs to apply for the second round.

Easypaisa Digital Bank Opens Weave Together 2026 Applications For Persons With Disabilities

Easypaisa Digital Bank has opened applications for Weave Together 2026, its diversity and inclusion programme supporting career opportunities for persons with disabilities.

PSX Trains 80 Government Girls College Principals To Promote Financial Literacy And Investing

Pakistan Stock Exchange and Sindh’s College Education Department trained 80 principals in Karachi to promote financial literacy and investment awareness among students.

Bank Alfalah Partners With Climate Finance Accelerator Pakistan To Expand Funding Opportunities For Climate-Focused Businesses

Bank Alfalah and Climate Finance Accelerator Pakistan have signed an MoU to connect investor-ready climate businesses with commercial capital and financial institutions.

Mobilink Bank Hosts PVARA Chairman for Discussion on Virtual Assets Regulation and Digital Finance Opportunities

Mobilink Bank’s Learning Fest 2026 hosted PVARA Chairman Bilal Bin Saqib for a discussion on virtual asset regulation, licensing and digital finance in Pakistan.

National Bank Of Pakistan Partners With Habib University Foundation to Support Undergraduate Education 

National Bank of Pakistan will support 13 female students through a four-year partnership with Habib University Foundation, prioritising rural and underserved communities.

Neem Paymenow And Human Capital Partner To Expand Earned Wage Access For Employees Across Pakistan

Neem Paymenow and Human Capital HR Solutions have partnered to give employees access to earned salaries before payday, alongside financial education.

Thomson Reuters Partners With SpendConsole.ai to Advance E-Invoicing and Finance Automation

Thomson Reuters and SpendConsole.ai are combining e-invoicing compliance and AI-powered payables automation to help businesses manage finance operations across the UAE and GCC.
spot_img

Related Articles

Popular Categories