PM to launch first phase of Instant Payment System
The State Bank of Pakistan (SBP) has achieved a significant headway on a payment system, which is aimed at transferring dividend payments directly to bank accounts of investors through the Central Depository Company (CDC).
The development of Pakistan’s Instant Payment System project, powered by the SBP in collaboration with its partners, has progressed significantly and Prime Minister Imran Khan will soon launch the completion of its first phase, said SBP Governor Reza Baqir.
Chairing the third nationwide stakeholders’ meeting on digital financial services on Thursday, he commended the completion of this phase in a reasonable time despite Covid-19 disruptions and appreciated continuous support from the SBP partners and other stakeholders.
He also highlighted various other initiatives of the SBP that were accelerating the pace of digitisation in the country.
He stressed that the successful introduction of digital account opening and provision of lifestyle banking and investment by banks through the Roshan Digital Account (RDA) for non-resident Pakistanis was a giant step forward. Baqir added that the SBP had fast-tracked the licensing application process for Electronic Money Institutions (EMIs), which would help accelerate digital payments by non-bank players.
“To facilitate cross-border flow of retail payments and venture capital funds, the SBP has also amended the Foreign Exchange Manual to make payments easier,” he said.
During the meeting, SBP officials shared plans for ensuring affordable access to digital financial services. In this regard, they apprised the stakeholders of the progress made in finalising the charges for digital channels such as inter-bank fund transfer.
Feedback and suggestions were sought from the participants, who largely appreciated efforts of the SBP aimed at catalysing the spread of digital financial services in the country, which was beneficial for both the financial institutions and the public.
Baqir thanked the Bill & Melinda Gates Foundation and its local representative Karandaaz Pakistan, McKinsey Pakistan and technology partner CMA, who provided full support despite Covid-19 challenges and travel restrictions to accelerate work on Pakistan’s Instant Payment System.
He also appreciated the Accountant General of Pakistan Revenue for its interest in leveraging the Instant Payment System platform for salaries and pension disbursement and the Benazir Income Support Programme for its interest in routing Ehsaas programme payments via this platform.
Published in The Express Tribune, January 8th, 2021.
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