Please refer to the BPRD Circular No. 09 dated June 20, 2011 titled “Branchless Banking Regulations for Financial Institutions”.

2.         Since the issuance of regulatory framework for Branchless Banking (BB); the market has shown appreciable growth in terms of business volumes, branchless banking accounts and agent network. BB Regulations permit Authorized Financial Institutions to operate many-to-many model where many banks and many mobile network operators, by joining hands, can offer interoperable financial services to all bankable customers.

3.         In order to facilitate the branchless banking service providers, State Bank of Pakistan and Pakistan Telecommunication Authority (PTA) have developed the captioned regulations for market participants including banks, mobile network operators and technology service providers. These regulations aim to create an enabling regulatory environment, bring systemic harmony and introduce standardization and set benchmarks for mobile / branchless banking interoperability. The Third Party Service Provider (TPSP) model, as stipulated in the regulations, will offer maximum outreach and connectivity whereby all banks and all mobile network operators shall be able to entertain each other‘s customers. The Authorized Financial Institutions should accordingly upgrade their systems, controls and procedures.

4.         The Regulations for Mobile Banking Interoperability are attached herewith. All Authorized Financial Institutions are advised to ensure compliance with these regulations, as non-compliance will be dealt with in accordance with the relevant provisions of law.

5.         Please acknowledge receipt.

Encl: As Above.