KARACHI, August 18, 2023 – The State Bank of Pakistan (SBP) has taken decisive action against M/s. TAG Innovation Pvt. Ltd., a company currently undergoing the Electronic Money Institution (EMI) licensing process, for breaching regulatory requirements and other concerns during its pilot operations phase.
In a press release issued on Thursday, the central bank revealed that M/s. TAG Innovation Pvt. Ltd., which had been in the pilot stage of the EMI licensing process, has been directed to refund all outstanding funds to its wallet holders promptly, with a strict deadline set for no later than August 19, 2022.
The SBP issues EMIs licenses to non-bank entities in a phased manner, involving three distinct stages: In-Principle Approval, Pilot Operations Approval, and Commercial Operations Approval. The pilot operations phase serves as an essential assessment period to gauge a business’s readiness for full-scale commercial operations. Only upon the successful completion of this phase is a license granted for commercial operations.
This stern action against M/s. TAG Innovation Pvt. Ltd. follows the SBP’s identification of multiple violations of its regulatory requirements and concerns regarding the company’s conduct during the pilot operations of its EMI licensing process.
The central bank’s move underscores its commitment to maintaining the integrity of the financial sector and ensuring that companies engaging in electronic money services comply with the strict regulatory framework set in place to protect consumers and maintain financial stability.
Disclaimer: This news story is based on a press release issued by the State Bank of Pakistan (SBP), the central bank of the country. For further details please download the press release.