Fraud deduction and precaution measures for branchless banking. Summary of key indicators indicators janmar 17 aprjun 17 quarterly growth number of agents 368,738 402,710 9. In the revamped regulations, sbp annulled the level 3 account service whereas conditions and process for level 2 accounts were similar to previously defined regulations of branchless banking. Strategies adopted to avoid crossing into the bank regulatory domain include selflimitation and trust account. Putting the banking in branchless banking count held in trust or the equivalent for the benefit of emoney customers so as to isolate the funds from claims by issuer creditors in the case of issuer bankruptcy, for example, although other approaches also exist. Sbp conference on branchless banking 17th keynote address by. Sbp revises transactions limits for branchless banking accounts. People have multiple options by various telcos and banks. New tills continue to be issued, albeit at a slower rate 2% 2 in the first quarter of 2017 than in the same period last year % 3. Bb regulations means the branchless banking regulations dated 12th july, 2016 issued by the state bank of pakistan, as amended from time to time. State bank of pakistan sbp has revamped branchless banking regulations to keep pace with the international branchless banking practices and to achieve the targets set out in national.
Transaction limit for branchless banking revised by state bank of pakistan the limit or transactions and the maximum level 0 and level 1 balance accounts for branchless banking system were revised by the sbp up to 100% so as to facilitate the customers throughout their operations. The state bank of pakistan sbp has amended the regulations for financial institutions to expand the outreach of branchless banking operation in the country, a statement said on monday. Prudential regulations for corporate commercial banking revised till january 2015 download size 1,123 mb prudential regulations for corporate commercial banking faqs updated december, 2016 download size 635 kb prudential regulations for consumer financing as of august 03, 2016 download size 84 kb prudential regulations for micro finance banks. Jul 14, 2016 the regulations have been implemented as part of the broader strategy to create enabling regulatory environment to promote bankled model of branchless banking, the sbp said. Technology is usually assessed in terms of convenience of conducting transaction, user interface, portability etc. Clear regulations and a regulator that is willing to both listen to the private sector and provide incentives for innovation have promoted a dynamic branchless banking sector. Firstly, it can be implemented either by using agency arrangements or by creating a jv between bank and telcononbank.
Sbp issued a policy paper on regulatory framework for branchless. Electronic money includes monetary value as represented by a claim on the issuer which is stored in an electronic device or payment instrument, issued on receipt of funds. The growing use of branchless banking channels over the coming years is inevitable in most countries. The state bank of pakistan sbp has revamped branchless banking regulations to achieve the targets set out in the national financial inclusion strategy nfis of pakistan, a statement. But its far less certain whether large numbers of the unbanked poor will use these alternative channels for financial services beyond payments, such as savings and credit. Sbp is prepared to support necessary legal and regulatory adaptations to facilitate branchless banking.
This is not the case with nonbankled branchless banking. State bank of pakistan sbp has taken a constructive. From the beginning, the state bank of pakistan sbp has taken a constructive regulatory approach by providing clear guidance and being willing to listen to businesses and adjust regulation where necessary. Pakistan sbp under the branchless banking regulations. Branchless banking regulations sbp 1 bprd 1 introduction 1. Transaction limit for branchless banking revised by state. Pakistan microfinance network in partnership with buildstone consulting group bcg organized a series of trainings on essential skills for loan officers under the pmns center of excellence.
Notes on regulation of branchless banking in pakistan june 2007. State bank of pakistan has issued regulations for branchless banking and only bank led model is allowed. Sbp amends regulations to expand outreach of branchless banking. Mobile banking, financial inclusion, branchless banking. Branchless banking or bb means conduct of banking activities as outlined in the bb regulations by hbl for account holder having a branchless banking account. One very important impact of the choice if technology is on the viability of the business model. Sbp has introduced level 0 bb account, enhanced transaction limits, allowed digital documentation. With the issuance of new agent banking regulations by the central bank of. Branchless banking regulations sbp 3 bprd order, instruct or authorize a financial institution or any other company or person to debit or credit an account. In this paper we have tried to make available proper branchless banking security by following sbp state bank of pakistan rules and regulations and provide. Oct 26, 2016 in pakistan, branchless banking has also taken great strides. Panjwani saurabh, 2011, and it is fully following sbp procedures in branchless banking, and provides rapid solutions for the fraud deduction.
Branchless banking regulations bb, promulgated in 2008, allowed for a bankled model of digital inancial services. Pdf branchless banking bb is an emerging financial segment also known as banking beyond branches. Following rapid uptake, the state bank of pakistan sbp revised the bb regulations in 2011 and. Sbp stated retail agents were part of the distribution network of telecom companies which also work in conjunction with banksmfbs via service level agreement to give financial services under the jurisdiction of bb regulations notified. Currently telenor easypaisa and ubl omni are competing to take lions share in pakistani market. Oct 02, 2017 the latest figures from the state bank of pakistan sbp indicate that providers have registered over 360,000 agent tills, although a significant number approximately 30% are inactive. Branchless banking regulation was first introduced. Branchless banking regulations revision sbp has recently revised branchless banking regulations with the objective of increasing role of agents, convenience to customers and reduction in operating cost. Mobile financial services for microfinance institutions. Pdf branchless banking or mobile banking is a relatively new approach in our. Branchless banking bb defined by the state bank of. This does not bode well for future as small players will not be able to grow their business, on other hand, the customers will have limited options and services. Mobile, branchless banking transactions are fully regulated.
Transaction economics for technology enabled branchless banking. The researcher carried out this study to understand the role of branchless banking and the implementation of the same for the unbanked. Tpsp model, as stipulated in the regulations, which allows all banks and all mobile network operators to cater to each others customers. Branchless banking regulations state bank of pakistan. Sbp introduces mobile banking interoperability regulations. As per the policy of state bank of pakistan, only bank led model of branchless banking is allowed for the establishment of bb setup.
At the close of calendar year 2018, branchless banking bb. Launched by the thenmidland bank now part of hsbc in 1989, branchless banking regulation was first introduced in pakistan in april 2008. As early as march 2008, the state bank of pakistan sbpin an effort to promote financial inclusion in pakistanissued branchless banking regulations that allowed financial institutions to offer financial services outside of traditional bank branches. In this paper we have tried to make available proper branchless banking security by following sbp state bank of pakistan rules and regulations and provide guaranteed security with respect to aml anti money laundering and kyc know your customer procedures.
The state bank of pakistan sbp said on wednesday that it has revamped branchless banking regulations to keep pace with the international branchless banking practices and to achieve the. Abstract pakistan is one of the fastest developing markets for branchless banking in the world. Pdf determinants of users trust for branchless banking in. Account type description transaction limits maximum balance limit level 0 basic bb account with low kyc requirements and low transaction limits rs. The competition in the branchless banking sector is limited to just three players jazzcash, easypaisa and ubl omni. Prudential regulations for corporate commercial banking revised till january 2015 size 1,123 mb prudential regulations for corporate commercial banking faqs updated december, 2016 prudential regulations for consumer financing as of august 03, 2016 prudential regulations for micro finance banks. A variety of business models is emerging that involves a wide range of players, including mobile network.
Both sbp and moit want to promote branchless banking models. Sbp revamps branchless banking regulations the express tribune. Pakistan sbp under the branchless banking regulations bbrs 2011, that branchless b anking or bb means the conduct of banking activities as outlined in these regulations. To do so would bring the supplier within the regulatory net of banking services, with all the additional compliance cost this tends to imply. Sbp revises transactions limits for branchless banking. Banking regulations address commercial banks, islamic banks and microfinance banks. People from rural areas prefer using mobile financial services due to lack of literacy and complex procedures, to send back money to their homes after working in the cities. This research paper is a study of the role of branchless banking in achieving financial inclusion in india. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The state bank of pakistan sbp on monday introduced regulations for mobile banking interoperability to facilitate the branchless banking service providers. Present report focuses on the impact of choice of technology on agent economics. State bank of pakistan sbp has revised the limit of transactions and maximum balance of the level 0 and level 1 accounts of branchless banking system by up to 100% to facilitate customers for. Branchless banking bb is one of the marvels of innovation in the fields of information communication technology ict and bpr business process reengineering.
Interoperability, 2015 and branchless banking regulations issued by sbp from. The cost associated with banking through mobile phones. It is the mode of rendering financial services through distribution network without having conventional branch brick and mortar set up. Sbp conference on branchless banking 17th november 2014 keynote address by finance minister senator mohammad ishaq dar mr ashraf mahmood wathra, governor state bank of pakistan, mr richard montgomery, head of the uk department for international development, pakistan, mr steve rasmussen, consultative group to assist poor cgap, world bank.
Branchless banking regulation was first introduced in pakistan in april 2008. Branchless banking a tool for financial inclusion eqbal. State bank revises branchless banking regulations to bring low. Of pakistan sbp, around 15% of our adult population is using banking services. Branchless banking terms and conditions level 0, 1 and 2.
1436 832 875 1135 434 1240 1 1486 510 792 619 1042 1422 1275 1198 241 132 1123 1400 1224 736 1039 1146 822 102 293 1484 360 407 28 1103 443 1073 931 1208 1176 1208 324 904 614