SBP Issues NOCs For 5 Digital Banks

Web Desk — The State Bank of Pakistan (SBP) issues no-objection certificates (NOCs) to Easy Paisa DB, Hugo Bank, KT Bank, Mashreq Bank, and Raqami — for establishing digital banks.

The SBP, in January last year, introduced a Licensing and Regulatory Framework for Digital Banks in line with international best practices.

With a view to introducing full-fledged digital banks, the framework was the first step, to provide all the banking services through digital means without any need for their customers to visit the branches physically.

Venture capital firms and a number of foreign players including those already operating in the digital banking space also expressed their interest to venture into the Pakistani market directly or in collaboration with local partners.

The five applicants, after a thorough and rigorous assessment process, were selected.

Applicants were assessed on the basis of various parameters including fitness and propriety, experience and financial strength; business plan; implementation plan; funding and capital plan; IT and cybersecurity strategy and outsourcing arrangements, etc.

Furthermore, it was mandatory for all the applicants to present their business cases to SBP.