Govt to simplify financial, telecom sector rules
Monday, May 26, 2008 6:45Islamabad—The government has decided to simplify financial and telecom sector regulations so as to introduce mobile banking including mobile money transfer and remittances. Informed sources said that the Ministry of Information Technology has issued policy directives to Pakistan Telecommunication Authority (PTA) to implement the framework for telecommunication sector development for reaching out with m-banking (mobile-banking) services through regulations to be framed by PTA.
These regulations will govern technical implementation of m-banking systems, through mobile infrastructure of cellular operators facilitating transfers and remittances, sources said. The SBP has issued Brancheless Banking Regulations based on bank-led model for financial institutions for operation of m-banking using wireless/cellular technology options.
The Ministry of Information Technology was being defining relevant telecom sector policy framework to compliment the State Bank regulations. As per the Branchesless Banking Regulations, financial institutions involved in m-banking services will carry responsibility of fraud protection and other associated risk. These institutions will be highly dependent on reliable relay of user transactions over the networks of wireless/cellular mobile operators.
