Follow Us And get latest news

PTA will issue TPSP licenses for the branchless banking and mobile franchises

Faryal Nadeem Apr 07, 2017
4 353

Pakistan Telecommunication Authority has made a decision to grant licenses to all the private companies, which mandate to operate or to establish the telecom system as Third Party Service Provider for the application or financial services all over Pakistan.

The TPSP license holder is permitted to provide and offer technical services for switching, routing and channeling transactions for all mobile and branchless banking among State Bank of Pakistan, Telecom operators, Authorized Financial Institutions and TPSPs.  PTA has also issued Information Memorandum to set out the process and various other background information to help the prospective applicants to decide that they wish to apply for TPSP license.

According to the Information Memorandum, the widespread propagation of different cellular mobile service in Pakistan has opened up the new avenues of possibility to bring the unbanked communities into the banking network through mobile banking.

To get the advantage and to avail the full potential services for the unbanked and rural population, SBP has issued Branchless Banking Regulations to compliment the SBP regulations. The Ministry of Information Technology and Telecom have issued the policy directive to Support Technical Implementation of Mobile Banking including the mobile money transfers and remittances.

Read This: New Mobile Technology Lab is working in Karachi

After the implementation of above mentioned, Policy Directive would help to achieve the objective for offering the low-cost mobile banking services and the greater financial inclusion in Pakistan. SBP and PTA have joined hands to establish a framework for TPSP, which will assist to interoperate the mobile financial services through the issuance of licenses by PTA regulations for Technical Implementation of Mobile Banking and the SBP regulations for Mobile Banking.

These rule and regulations provided are appropriate technological and regulatory framework to maximize the number of bank accounts in Pakistan and its usage in Pakistan. The TPSP License will be issued for the upcoming 10 years. After the successful completion of the diligence process, PTA and SBP Joint regulatory committee will assess the application in the light if financial and technical regulatory requirements. PTA will soon issue the license to all the successful applicants.

The mobile banking system in Pakistan provides a great variety of services including the fund transfers from person to person, account to person and account to account. Mobile banking services are assisting and providing additional facilities for the college and school fee, scholarships, salary disbursement to the government employees, relief and rehabilitation funds or repayments.

Read This: PTA introduces system for registration of complaints against relative mobile company