On Wednesday, the State Bank of Pakistan (SBP) granted ‘in-principleapprovals’ (IPA) to five digital retail banks in a move aimed at promotinginnovation, financial inclusion, and the availability of affordable digitalfinancial services, as reported by ARY News.
SBP Governor Jammel Ahmed conducted a significant ceremony at the SBPMuseum Building in Karachi, where he bestowed ‘in-principle approvals'(IPAs) upon the five prospective digital banks, according to an officialstatement from the central bank.
The event saw the participation of sponsors for the proposed digital retailbanks, CEOs of existing banks, Payment System Operators (PSOs)/ PaymentSystem Providers (PSPs), Electronic Money Institutions (EMIs), Fintechcompanies, and senior management from the central bank.
According to the statement, these entities have now received provisionalapproval to prepare themselves operationally to launch digital financialservices, subject to meeting necessary requirements.
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During the ceremony, the SBP Governor emphasized the importance ofintroducing digital banks in Pakistan, the significant benefits they bringto the financial system, and the challenges faced by such players in thefinancial sector.
