The State Bank of Pakistan (SBP) and the Pakistan Telecommunication Authority (PTA) signed a Memorandum of Understanding (MoU), here on Wednesday. The MoU was signed by Inayat Hussain, Executive Director, State Bank of Pakistan and Dr Muhammad Saleem, Director General, Commercial Affairs, Pakistan Telecommunication Authority in the presence of SBP Governor Yaseen Anwar and PTA Chairman, Dr Mohammed Yaseen.
The main objective of MoU is to develop an appropriate technological & regulatory framework through a consultative process to strengthen the mobile banking with a view to supporting the provision of banking services as authorised by SBP. Under this collaboration, the PTA and the SBP will act as facilitators by means of regulatory oversight and issuance of license/designation to Third Party Service Providers (TPSP) and setting the performance benchmarks through standardised Service Level Agreement (SLAs) between the telecom operators/TPSPs and the authorised financial institutions for carrying out financial transactions in a prudent manner through mobile banking means, under the relevant legislative structure.
The MoU is meant to develop a cohesive regulatory framework, in consultation with all the stakeholders and to assist each other in achieving the common objective of providing the low cost mobile banking services.
In order to co-ordinate for smooth implementation of mobile banking and to resolve any disputes among the stakeholders, a SBP-PTA joint co-ordination committee shall be constituted comprising four officials from SBP which shall include the Executive Director (BPRG), Director-Banking Policy & Regulations Department, Director-Payment Systems Department and Director Information Systems & Technology Department and three officials from PTA - Director General (Commercial Affairs), Director General (Law & Regulations) and Director General (Services).
The Committee would be jointly headed by the Executive Director (BPRG), SBP and Director General (Commercial Affairs), PTA. To monitor the progress, representatives of both the parties shall meet on a quarterly basis and suggest measures to improve or further expand the framework as and when the need arises.