Digital bank means a bank licensed under Section 27 of the Banking Companies Ordinance, 1962, in accordance with the proposed Framework, that provides solutions predominantly through digital and electronic means and which does not have physical branches, subject to any exceptions under the relevant regulations, as may be amended from time to time. This term includes both conventional and Islamic digital bank.
 | Promote financial inclusion |
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Provide credit access to unserved and underserved. |
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Extend low cost digital financial services |
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Paper instrument clearing facilities on T+1 basis, backed by a network of more than 27 clearing/satellite centers around the country |
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Encourage application of financial technology and innovation to banking |
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Foster new set of customer experience |
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Further develop digital eco-system |
There shall be two types of digital banks:
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Digital Retail Bank (DRB), which may deal with retail customer segments. Retail customer segment include all the customer segments permissible for commercial banks in general except the corporate and commercial segments. The term mainly comprises individuals, SMEs, micro and agriculture entities, as defined in these regulations. |
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Digital Full Bank (DFB), which may deal with corporate, commercial and retail customer segments. |
| a) A traditional bank having minimum one year of delivering Digital Financial Solutions (DFS) in the retail customer segments, may apply either individually or with other equity participants however SBP may advise an extended period of experience if the traditional bank’s performance is not considered satisfactory by SBP |
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An EMI seeking conversion into a DRB having minimum one year of delivering DFS in the retail customer segments however SBP may advise an extended period of experience if the EMI’s performance is not considered satisfactory by SBP |
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Those holding majority stake in or exercising control over a microfinance bank, EMI, international bank or international DFS entity having a successful track record of a minimum of three years of delivering DFS in the retail customer segments, may apply either individually or with other equity participants; and |
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Any other person or entity having a minimum of three years of experience in the financial services, financial technology, telecommunication, e-commerce, ICT, or other pertinent digital or innovative financial and non-financial domains, when applying to form a DRB with a minimum of 5% equity in the proposed DRB, and at least one of the individuals or entities, as the case may be, listed in sub-clause (a), (b) and (d) being a minimum 5% equity participant in the proposed DRB |