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Category: Money & Banking

Money and banking drive economic activity by facilitating transactions, savings, and investments. Banks manage financial resources, offer credit, and regulate money supply, ensuring stability and growth in Pakistan’s financial sector.

  • SBP issues regulations for electronic money institutions

    SBP issues regulations for electronic money institutions

    KARACHI: State Bank of Pakistan (SBP) on Monday issued regulations for electronic money institutions in order to promote financial inclusion in the country.

    In a statement, the central bank said that in order to foster innovation in the payments industry and promote financial inclusion in the country, it has been decided to license non-banking entities as E-Money Institutions (EMIs) as per the notified regulations under the powers conferred on SBP by Payment Systems and Electronic Fund Transfers Act, 2007.

    These regulations will remove entry barriers and provide level playing field to EMIs in payment’s arena which will eventually lead to the development of payments ecosystem in Pakistan.

    SBP therefore expects that the prospective EMIs shall offer convenient, cost effective, interoperable and secure digital payment products and services to end users in the country.

    These Regulations shall come into force with immediate effect.

    The objectives of the regulations are included:

    I. To provide regulatory framework for EMIs desirous of offering innovative payment services to the general public.

    II. To prescribe minimum service standards and requirements for EMIs to ensure delivery of payment services in a safe, sound and cost effective manner.

    III. To outline the permissible activities that can be carried out by an EMI and its agents’ network.

    IV. To provide a baseline for protection of EMI’s customers.

    V. To achieve the SBP’s objective of digital payments and financial inclusion.

    The SBP said that Payment Systems and Electronic Funds Transfer Act, 2007 defines e-money as monetary value stored on an electronic device or payment instrument issued on receipt of funds and accepted as a means of payment by entities other than issuer.

    E-money globally is widely used for making retail payments in an economy and has played a crucial role in digitizing different types of payments in various countries.

    Electronic Money Institutions (EMIs) are entities that offer innovative, user-friendly and cost effective low value digital payment prepaid instruments like wallets, prepaid cards, and contactless payment instruments including wearables.

    Globally, these innovative payment instruments have been instrumental in promoting cashless payments like merchant checkouts, e-commerce, transportation and toll payments etc.

    Traditionally, payment instruments in Pakistan are issued by banks without participation of non-banking entities.

    New technological innovations are now enabling non-banking sector to deliver innovative and efficient payment services to consumers at much lower cost.

    These regulations are primarily aimed at removing entry barriers for non-banking entities by providing them a guiding as well as an enabling regulatory framework for the establishment and operations of EMIs in Pakistan.

    These regulations also address potential risks in order to ensure consumer protection in line with legal framework of the country while promoting digital payments and financial inclusion.

  • Rupee falls by 7 paisas in early trade

    Rupee falls by 7 paisas in early trade

    KARACHI: The Pak Rupee fell by seven paisas against dollar in early trade on Monday.

    The dollar is being traded at Rs140.85 in interbank foreign exchange market. The foreign currency market was ended at Rs140.78 on last Friday.

    Currency experts said the rupee was sliding due to ongoing discussions with IMF for new loan program.

  • SBP holds SaarcFinance seminar on audit

    SBP holds SaarcFinance seminar on audit

    KARACHI: State Bank of Pakistan (SBP) hosted a seminar on ‘Internal Audit: Emerging Challenges and Effective Practices in Central Banks’ under the aegis of SAARCFINANCE Forum at National Institute of Banking and Finance, Islamabad during 27-29 March 2019, a statement said on Saturday.

    Besides Pakistan, officials from SAARC central banks participated in the event.

    Qasim Nawaz, Executive Director, SBP inaugurated the seminar.

    While addressing the inaugural session, he stated that until a few years back, business process reengineering was at the core of innovation in banks.

    While advancements in technology have further transformed the horizon of financial services, these innovations are also raising challenges of their own.

    Adding further, he stated that the board and the senior management of State Bank are cognizant of the need to align its internal operations to the changing environment, and to promote innovation in the financial sector in a regulated environment.

    Horst Simon, the keynote speaker of the event, discussing technological risks faced by business around the world, highlighted the importance of risk culture inculcated within the organization.

    He emphasized on the roles and responsibilities of board, senior management and the employees to maintain a robust risk management mechanism.

    The seminar was also addressed by Zayeem Bin Alam, Senior Manager of PricewaterhouseCoopers.

    Zayeem discussed the risks of cyber security, social media, data privacy and third party risks and offered an IT auditor’s perspective of how to address those risks by discussing controls.

    Syed Sohail Javaad, Director Payment Systems Department shared the on going developments about digital payments, their importance, evolution, the benefits of disruptive technologies to regulators, the emerging risks and appropriate responses to them from the perspective of internal audit.

    Apart from these speakers, the delegates of the central banks also presented their country papers for the information of the audience.

  • Rupee falls by 70 paisas in open market

    Rupee falls by 70 paisas in open market

    KARACHI: The Pak Rupee fell by 70 paisas against dollar on Saturday owing to demand in the open market.

    The buying and selling of dollar was recorded at Rs142.00/Rs142.50 from previous day’s close of Rs141.30/Rs141.80 in cash ready market.

    The rupee depreciated during the past two days owing to enhancing key policy rate and the intention shown by the government to enter new IMF loan program.

  • SBP increases policy rate by 50bps to 10.75 percent

    SBP increases policy rate by 50bps to 10.75 percent

    KARACHI: State Bank of Pakistan (SBP) on Friday increased key policy rate by 50 basis points to 10.75 percent for next two months effective from April 01, 2019.

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  • Rupee sheds 49 paisas against dollar

    Rupee sheds 49 paisas against dollar

    KARACHI: The Pak Rupee fell sharply by 49 against the US dollar on Friday owing to higher demand for import and corporate payments.

    The rupee ended Rs140.78 to the dollar from previous day’s close of Rs140.29 in interbank foreign exchange market.

    The interbank foreign market was initiated in the range of Rs140.60 and Rs140.80.

    The market recorded day high of Rs140.80 and low of Rs140.78 and closed at Rs140.78.

    The rupee also fell by 80 paisas in the open market against dollar.

    The buying and selling of dollar was recorded at Rs141.30/Rs141.80 from previous day’s closing of Rs140.50/Rs141.00 in cash ready market.

  • Rupee falls by 41 paisas against dollar in early trade

    Rupee falls by 41 paisas against dollar in early trade

    KARACHI: The Pak Rupee witnessed massive fall of 41 paisas against US dollar in early trade on Friday.

    The dollar is being traded at Rs140.70 in Interbank Foreign Exchange Market. The foreign currency market ended yesterday at Rs140.29 to the dollar.

    Currency experts said the higher demand for import and corporate demand escalated the rupee value.

    The experts said that the State Bank of Pakistan is announcing monetary policy today. This announcement also pressurized the local currency.

  • SBP directs banks to facilitate duty, taxes payment

    SBP directs banks to facilitate duty, taxes payment

    KARACHI: State Bank of Pakistan (SBP) on Thursday directed banks to facilitate payment of duty and taxes on Saturday, March 30, 2019.

    The central bank in a statement said in order to facilitate the collection of Government receipts/duties/taxes, NIFT will provide special clearing facility on the advice of SBP on Saturday, March 30, 2019 at 8:00 pm.

    All banks are, therefore, advised to keep their concerned branches open on March 30, 2019 (Saturday) till such time that is necessary to facilitate the special clearing for the government transactions.

  • SBP sets up help desk for MNCs, domestic businesses

    SBP sets up help desk for MNCs, domestic businesses

    KARACHI: State Bank of Pakistan (SBP) has established a facilitation desk for foreign exchange related remittances to help multinational companies and domestic businesses.

    In a statement on Thursday, the SBP said it had established the facilitation desk to cater to the queries pertaining to foreign exchange related remittances to help all stakeholders including multinational companies and domestic businesses.

    The facilitation desk will provide assistance on foreign exchange related matters pertaining to areas including registration of equity, borrowing contracts, profit repatriation; acknowledgement and approval of royalty, franchise, technical and management services; training and development fees; operational and maintenance charges; lease rentals/maintenance reserves of airlines; legal and advisory services, visa and consulate fee; approval to issue guarantees and standby letter of credits; and any other foreign exchange related matters.

    Banks have been directed to devise benchmarks for processing and due diligence of each type of transaction and ensure compliance thereof.

    The facilitation desk has been established at Foreign Exchange Operations Department, Banking Services Corporation, I.I. Chundrigar Road, Karachi.

  • Rupee ends firmer against dollar

    Rupee ends firmer against dollar

    KARACHI: The Pak Rupee ended firmer against the US dollar on Thursday in a range bound trading activity.

    The rupee ended Rs140.29 to the dollar from previous day’s close of Rs140.28 in interbank foreign exchange market.

    The interbank foreign exchange market was initiated in the range of Rs140.28 and Rs140.30.

    The market recorded day high of Rs140.30 and low of Rs140.29 and closed at Rs140.29.

    The exchange rate remained unchanged in open market.

    The buying and selling of dollar was recorded at Rs140.50/Rs141.00, the same previous day’s level, in cash ready market.