Digital Banks in Pakistan: Government takes a revolutionary step
Shares
On Wednesday, the State Bank of Pakistan (SBP) granted 'in-principle approvals' (IPA) to five digital retail banks in a move aimed at promoting innovation, financial inclusion, and the availability of affordable digital financial services, as reported by ARY News.
SBP Governor Jammel Ahmed conducted a significant ceremony at the SBP Museum Building in Karachi, where he bestowed 'in-principle approvals' (IPAs) upon the five prospective digital banks, according to an official statement from the central bank.
The event saw the participation of sponsors for the proposed digital retail banks, CEOs of existing banks, Payment System Operators (PSOs)/ Payment System Providers (PSPs), Electronic Money Institutions (EMIs), Fintech companies, and senior management from the central bank.
According to the statement, these entities have now received provisional approval to prepare themselves operationally to launch digital financial services, subject to meeting necessary requirements.
During the ceremony, the SBP Governor emphasized the importance of introducing digital banks in Pakistan, the significant benefits they bring to the financial system, and the challenges faced by such players in the financial sector.
