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State Bank of Pakistan grants digital banking licence to Easy Paisa

Wednesday 29 January 2025 10:52 CET | News

The State Bank of Pakistan (SBP) has granted a digital banking licence to Easy Paisa Bank to expand digital financial services in the country.

 

The DRB licence to Easy Paisa Bank is expected to promote innovation, enhance financial inclusion, and ensure the availability of accessible and affordable digital financial services.

SBP grants digital banking licence to Easy Paisa Bank

The digital banking market in Pakistan

SBP highlights the importance of digital banking and achieving licensing milestones since half of Pakistan’s rural population lacks access to traditional banking services. Digital banking is necessary to bridge the gap and help MSMEs and other underserved segments, which could benefit significantly from digital financial services.

In Pakistan, the digital banking market is expected to witness significant growth in terms of Net Interest Income, with a rising number of consumers opting for online banking services.

Related moves and developments from SBP

In January 2023, SBP issued No Objection Certificates (NoCs) to five applicants, HugoBank, KT Bank Pakistan, Mashreq Bank Pakistan, Raqami Islamic Digital Bank, and Easy Paisa Bank. These entities were selected following an evaluation process that assessed key criteria, including governance and fitness, industry expertise, financial capacity, business strategies, implementation frameworks, funding plans, and IT and cybersecurity infrastructure.

In September 2023, these banks received IPA to prepare for operations. Subsequently, after fulfilling the required conditions, Easy Paisa Bank has now been authorised to commence commercial DRB operations.

In a related development, the SBP reduced the policy rate by 100 basis points to 12%, as part of its first monetary policy of 2025. The governor explained that inflation in Pakistan had been gradually decreasing, with the inflation rate falling to 4.1% in December 2024. The SBP forecasts inflation will remain between 5% and 7% for the fiscal year 2024-2025.


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Keywords: digital banking, SMEs, banking license, financial services, banks
Categories: Banking & Fintech
Companies: State Bank of Pakistan
Countries: Pakistan
This article is part of category

Banking & Fintech

State Bank of Pakistan

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