SBP Introduces a Licensing and Regulatory Framework for Digital Banks in Pakistan

An official document released by the External Relations Department of the State Bank of Pakistan (SBP) on the 3rd of January 2022 has announced the introduction of a licensing and regulatory framework to boost the country's digital banking and payments solutions. Under this framework, the SBP may grant two types of digital banking licences; a digital retail bank (DRB) license, and a complete digital bank (DFB) license.

Why it Matters?

The framework is the first step towards the introduction of completely digital banks that offer full banking services through digital means, eliminating the need for physical visits to branches and it provides details for setting up digital banks as a separate and distinct category from physical branches in Pakistan. The S...