KARACHI: The State Bank of Pakistan (SBP), in line with its vision-2020, has drafted regulations for electronic money institutions (EMIs) to promote digital payments and provide enabling regulatory framework to non-banking entities in payments landscape.
These regulations outline minimum requirements for establishment and
operations of EMIs. Thereby, addressing the potential risks related to legal framework of the country, said a SBP statement.
EMIs are non-banking entities that offer innovative, user-friendly and
cost effective low value digital payment prepaid instruments like wallets, prepaid cards, and contactless payment instruments including wearables to consumers.
These institutions are usually regulated under the payments and settlement systems laws around the globe. Traditionally, payment instruments in Pakistan are issued by banks with negligible participation of non-banking entities.
However, having the potential to innovate, these non-banking entities can play a critical role in digitizing different types of payments in the country.
SBP requests general public and other stakeholders to furnish their comments on the draft regulations for further improvements. The draft is available on SBP’s website, the statement concludes.
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