Karachi: State Bank of Pakistan (SBP) Governor Dr Reza Baqir said on Friday (January 21) announced that the central bank will grant operation licenses to five new digital banks to launch their services, news sources reported. The licenses will be awarded in accordance with the SBP’s policy on ‘Licensing and Regulatory Framework for Digital Banks (LRFDB).’
According to the licensing agreement, digital banks will provide branchless financial services such as opening banking accounts and biometric verifications remotely, eliminating the need for consumers to visit the bank. The SBP further stated that digital banks will function inside a contemporary and digital banking framework, with security and digital infrastructure in place. All banks would be provided SBP assistance in managing their operations as needed. In this context, the SBP hosted a webinar titled ‘Digital Banks – A New Era in Banking,’ which was addressed by the SBP governor. He stated that the central bank will provide digital banks with a strong value proposition, robust technology infrastructure, adequate financial strength, technical knowledge, and an effective risk management culture with the launch of digital banking.
It is vital to recall that the central bank introduced LRFDB on January 3, 2022, with the goal of promoting the banking sector and increasing people’s access to banking.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
