SBP orders e-money firm to refund customers

KARACHI: The State Bank of Pakistan on Monday instructed an electronic money institution (EMI) to reimburse its e-wallet holders within 15 days, after the firm requested to close its business and withdraw its license.

CMPECC (Pvt) Ltd, which was in the commercial stage of its e-money operations, had asked the SBP to revoke its license under the Regulations for EMIs, the central bank said in a statement.

“The State Bank of Pakistan (SBP) on October 23, 2023 has advised M/s CMPECC (Pvt) Ltd, currently in ‘Commercial stage’ under Regulations for Electronic Money Institutions (EMIs), to refund all outstanding funds to its e-money wallet holders immediately but not later than 15 days of the issuance of the aforementioned letter (dated October 23, 2023,” the statement added.

"The liability of returning customers' funds rests with CMPECC under the regulations for EMI." The The State Bank of Pakistan issues EMI licenses to non-bank entities in three stages: in-principle approval, pilot operations approval and commercial operations approval, according to the statement. It said that further instructions on revocation of CMPECC's license would be issued separately.