Pakistan’s central bank has launched a new licensing and regulatory framework for digital banks.

The State Bank of Pakistan (SBP) said that this is the first step towards setting up a completely digital bank that will offer all banking services.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The new framework is part of SBP’s efforts to digitise the banking and payments services in the country and increase financial inclusion via cost-effective digital financial services.

SBP’s other initiatives in this direction include customers’ digital on-boarding, Roshan Digital Account, Raast – Instant Payment System, Electronic Money Institutions licenses and Asaan Mobile Accounts.

SBP’s framework provides details for setting up digital banks such as licensing requirements, potential sponsors, and permissible use-cases during different phases.

Under the new framework, SBP plans to offer two types of digital banking licenses – Digital Retail Bank (DRB) and Digital Full Bank (DFB).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

DRBs will be focused on retail customers, while DFBs can cater to retail customers as well as business and corporate clients.

SBP noted that the “demand for banking services is also faith sensitive”. Therefore, it will license DRBs and DFBs to offer both conventional and Islamic banking services.

During the pilot phase, the minimum requirement of capital for digital retail banks is $8.5m. This capital will increase to $22.6m over three years.

The central bank said it will issue up to five digital bank licenses and the application window is open until 31 March 2022.