KARACHI: State Bank of Pakistan (SBP) has revoked approval granted to M/s. TAG Innovation to operate as Electronic Money Institution (EMI) in the country.
In a statement issued on Friday the central bank said it had revoked the in-principle approval and pilot operations approval granted to M/s. TAG Innovation Pvt. Ltd. to operate as an Electronic Money Institution (EMI) with immediate effect as per the applicable laws.
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SBP has taken this decision to protect the interest of public at large after identifying violation of its regulatory requirements and other concerns during the pilot operations of the company.
EMIs are entities that offer innovative, user-friendly and cost effective low value digital payment instruments like wallets, prepaid cards, and contactless payment instruments.
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M/s TAG has been advised to close all customers’ wallets and remove their application from Google’s Play Store and Apple’s App Store and any other platform with immediate effect.
Earlier SBP through its Press Release dated August 04, 2022 had informed the public about the regulatory action taken against M/s TAG.
Previously, the SBP has advised M/s TAG Innovation Pvt. Ltd., which was in pilot stage of Electronic Money Institution (EMI) licensing process, to refund all outstanding funds to its wallet holders immediately but no later than August 19, 2022.
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This action has been taken after identification of violations of SBP’s regulatory requirements and other concerns during the pilot operations of M/s TAG.
Electronic Money Institutions (EMIs) licenses are issued by SBP to non-bank entities in three stages i.e. In-Principle Approval, Pilot Operations Approval and Commercial Operations Approval.
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Moreover, pilot operation is conducted to assess the readiness of the business for commercial operations and only after its successful completion, license to commence commercial operations is granted to the respective EMI.
