It said the licencing and regulatory framework contains details for setting up digital banks as a separate and distinct category in Pakistan.
Under this framework, the SBP said it may grant two types of digital bank licences: Digital Retail Bank (DRB) and Digital Full Bank (DFB). DRBs will primarily focus on retail customers while DFBs can deal with retail customers as well as business and corporate entities.
The framework includes guidance regarding licencing requirements, potential sponsors, and permissible use-cases during different phases. It also sets an expectation for applicants to have sound digital governance, robust, secure, and resilient technology infrastructure, effective data management strategy and practices.
Under the framework, digital banks are required to maintain a principal place of business in Pakistan to house the offices of its management, staff, other support operations and serve as the main point of contact for various stakeholders, including SBP and other regulators.
At the beginning of 2021, Pakistan launched a government-run digital payment system called Raast or ‘direct way’ which is being rolled out in three phases, the last one being in early 2022.
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