SBP working over digital banking, branchless banking: Governor

KARACHI: Governor State Bank of Pakistan (SBP) on Tuesday said that the central bank has issued digital banking license to the Easy Paisa Bank Ltd.

Governor said that the SBP working over the regulatory form of the digital banking and branchless banking.

“Around half population of Pakistan’s far-flung areas have no accounts in banks,” central bank governor said. “The digital banking is most necessary in view of these figures,” he said.

He said the digital banks could empower the small and medium enterprises (SMEs).

The SBP on Monday slashed policy rate by 100 basis points in the first monetary policy of 2025.

“The Monetary Policy Committee (MPC) decided to cut the policy rate by 100 bps to 12 percent, effective from December 17, 2024,” the SBP said in a statement.

The Monetary Policy Committee (MPC) meeting was chaired by SBP Governor Jameel Ahmad.

The announcement for the new policy rate was made by the SBP Governor Jameel Ahmed in a press conference after the MPC meeting.

The SBP chief said inflation is decreasing in Pakistan gradually and added the inflation dropped to 4.1pc in December 2024.

The inflation rate will remain between 5 to 7 per cent in FY2024-25, he added.