ISLAMABAD, April 1 (APP): Finance Minister Asad Umar Monday formally launched State Bank of Pakistan’s (SBP) Electronic Money Institutions (EMIs) Regulations, providing regulatory framework for the institutions desirous of offering innovative payment services to the public.
The regulations would prescribe minimum service standards and requirements for EMIs to ensure delivery of payment services in a safe, sound and cost effective manner.
The regulations, to be applicable from April 1, are aimed at promoting innovative, user-friendly and cost effective low value digital payment prepaid instruments.
The instruments like wallets, prepaid cards, and contactless payment instruments, which have been instrumental in promoting cashless payments like merchant checkouts, e-commerce, transportation and toll payments.
Among others, top officials of SBP, representatives from banking non-banking sectors and other stakeholders were present on the occasion.
Meanwhile, speaking at the launching ceremony, Finance Minister Asad Umar said that digitization was imperative for bringing about economic revolution in the country, hence the measure taken by the SBP was laudable and much needed.
“I have told Prime Minister many times that if you have to bring revolution in future, this is the way,” the minister remarked.”
The minister was of the view that this regulation would resolve different core issues, promote transparency and reduce dependence on human resources. He was of the view that when the system is expanded, it would be difficult for people to remain outside it.
Currently, it is easy to remain outside the formal network as it is profitable, when you get to this system, it would make difficult for people to remain out of this system, he remarked.
He said that Pakistan was facing many issues in terms of macro-economic matters, low national savings, low ratio of investments, high fiscal deficit and so many others.
However, he added, the biggest issue the economy of the country was facing was that Pakistan was a victim of elite capture of economic policies. Those having good relations turn to be successful businessman and those making innovations and taking risks, do not become so successful.
He said the digitization would be more beneficial for those taking risks and offering innovations, adding that it could become a component towards bringing about fundamental transformation in country’s economy.
He also highlighted the importance pacing up with world economic and technological developments.
The minister also highlighted the importance of Cyber Security, saying that a single mishap could push the country years back. “As we move towards this digital economy, if even a single or two cases of data-hacking are witnessed, it would retard years of development. “It is absolutely vital, whatever investment needs to be made, these should be state-of-the-art,” he added.
Meanwhile, speaking on the occasion Deputy Governor SBP, Jameel Ahmed said that the drafting of these regulations was no doubt a challenging task, which has been accomplished with the help of different stakeholders and World Bank.
He said that technological advancements have given rise to platform economy, adding that there were around 157 cellular subscribers with 75 percent teledensity in Pakistan.
He said that SBP was currently working on concept of issuing digital currency by year 2025 to promote financial inclusion and reduce inefficiency and corruption. He said that SBP was committed to adopt evolving-realities of time, adding that by year 2030, the bank would be fully digitized and technology-equipped center.
Meanwhile, SBP representatives on the occasion gave detailed briefing about the IMEs regulations, its licensing procedures, other requirements, limits of e-money instruments and many other issues related to the subject.
VNS Islamabad
