Licensing Stages for EMIs (Electronic Money Institutions)

Licensing Stages for EMIs (Electronic Money Institutions) - Khalid Zafar & Associates

There are three stages in which the prospective Electronic Money Institution (“EMI”) are granted license by State Bank of Pakistan.

1. First stage is “In Principle” approval.
2. Second stage is “Pilot Operations” approval.
3. Third stage is “Commercial Operations” approval.

License Stages are explained below:

1. An “In-Principle” approval shall be granted to the applicant to operate as EMI which will contain conditions required to be fulfilled prior to the commencement of pilot operations.
2. EMI shall be allowed to commence pilot operations. limited-scale real transactions, once they attain operational readiness, fulfil minimum capital and security deposit requirements and any other requirements as mentioned in In-Principle approval.
3. License to commence commercial operations shall be granted subject to satisfactory completion of pilot operations and fulfilment of all SBP’s requirements. Further, SBP may at its discretion designate any licensed EMI as a designated payment system under Payment Systems and Electronic Funds Transfer Act, 2007.

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Definition of EMI and its activities in Pakistan