A Memorandum of Understanding (MoU) has been signed jointly by the State Bank of Pakistan (SBP) and the Pakistan Telecommunication Authority (PTA) on Wednesday.
The purpose behind the MoU is to develop a suitable technological and regulatory structure through a consultative process to reinforce the Mobile Banking with a view to supporting the provision of banking services as authorised by SBP.
The MoU was signed at a local hotel in Karachi after a meeting of all stakeholders and to assist each other, in achieving the common objective of providing the low cost Mobile Banking services.
The MoU was signed by Inayat Hussain, Executive Director, State Bank of Pakistan and Dr Muhammad Saleem, Director General, Commercial Affairs, Pakistan Telecommunication Authority (PTA) in the attendance of SBP Governor, Yaseen Anwar and PTA Chairman, Dr Mohammed Yaseen.
By following this joint venture, PTA and the SBP will operate 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 cautious manner through Mobile Banking means, under the relevant legislative structure.
In order to arrange for flat implementation of mobile banking and to resolve any disputes among the stakeholders, an SBP-PTA Joint Coordination Committee shall be formed including the following: Four officials from SBP which shall include, the Executive Director (BPRG), Director-Banking Policy and Regulations Department, Director-Payment Systems Department and Director- Information Systems and Technology Department.
Three officials are from PTA including Director General (Commercial Affairs), Director General (Law and Regulations) and Director General (Services).
The Committee would be jointly headed by the Executive Director (BPRG), SBP and Director General (Commercial Affairs), PTA. To supervise the progress, representatives of both the parties shall meet on a quarterly basis and suggest measures to develop or further expand the framework as and when the need arises.