Pakistan’s central bank, telecom authority join hands to enhance mobile banking

Microfinance Focus, Nov. 24, 2009: The State Bank of Pakistan and the Pakistan Telecommunication Authority have agreed to introduce a unified regulatory framework for enhancing mobile banking in the country.
“It has been decided to set up a Joint Regulatory Committee,” said a joint statement released after a meeting held at SBP, Karachi recently between Syed Salim Raza, Governor, State Bank of Pakistan and Dr Mohammed Yaseen, Chairman PTA.
This Committee, which will comprise members from both the SBP and PTA, will to introduce unified regulatory framework for Third Party Solution Provider (TPSP) system. It will propose modification in existing regulatory or legal framework, if needed. Further, an M-banking
Stakeholders Group (including mobile network operators, financial institutions, Ministry of Information Technology, PTA, SBP, SP/integrators) is also proposed to be set up, which would address technical standards, product and services, licensing regime and relevant operational
issues etc.
“We hope that this understanding will encourage innovative technological products which would ultimately enhance outreach of financial services in the country,” the statement said. Mobile banking offers a variety of financial/non-financial functions, including merchant
payments, utilities bills payments, fund transfers, and remittances etc. The synergy likely to be created by the financial institutions, mobile operators and other partners will bear very promising results.
In Pakistan, such innovative services have been possible through introduction of Branchless Banking Regulations (BBRs) by State Bank. Subsequent to BBRs, the Ministry of Information Technology issued Policy Directives to PTA to prepare a framework on technical
implementation of BBRs.

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