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Business with E-Money

The State Bank of Pakistan (SBP) has issues prepaid card regulations for the promotion of electronic payments. It is done to give an enabling and level playing field for all the potential and existing participants.

These regulations have been implemented by the State Bank on the basis of international recommendations being given to them. These international recommendations are proposed by the Financial Action Task Force (FATF) for anti-money laundering (AML). Financial Action Task Force wants to combat the financing of terrorism (CFT) risks, which are linked with the prepaid cards.

Prepaid card is a kind of payment instrument. This instrument allows the users to pay early. Example of debit and credit card functioning can be regarded to understand the function of these prepaid cards.

With the help of these prepaid cards, unbanked segments of the population will have an idea of the formal financial products without the requirement of a formal banking account opening. Prepaid cards are a very effective means for business in Pakistan as they will promote an alternative to a transaction banking account because almost all of its features are similar to the features offered by the transaction banking accounts.

Hence, these prepaid cards will play an integral role in the finance circle of the country. They will be a relief to the low-income unbanked individuals, whereas, they will also be another finance option for the bank using customers. There are few regulations with these prepaid cards to govern any kind of finance theft.

Afreen is a young writer and visionary towards life predominantly. I believe that writing is similar to life; it inspires surprises and creates. Being a Literature Masters, I am passionate about viewing the world with literary spectacle. Solely in love with this beautiful part of Universe called Pakistan, I am creating words and ideas for CharchaGuru.

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Business with E-Money

The State Bank of Pakistan (SBP) has issues prepaid card regulations for the promotion of electronic payments. It is done to give an enabling and level playing field for all the potential and existing...