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Saturday February 24, 2024

SBP issues sandbox framework

By Our Correspondent
December 09, 2023

KARACHI: The State Bank of Pakistan (SBP) has issued draft guidelines for a regulatory sandbox that will allow innovators to test new digital financial products and services in a controlled environment, a statement said on Friday

The regulatory sandbox, which is part of SBP's Vision 2028 to promote financial and digital inclusion in the country, will enable SBP regulated entities, FinTechs, and startups to experiment with new business models and technologies under the supervision of the central bank.

An undated image of the State Bank of Pakistans plague. — APP  File
An undated image of the State Bank of Pakistan's plague. — APP  File

The draft guidelines outline the eligibility criteria, application procedures, and operational requirements for participants in the regulatory sandbox, which aims to foster innovation in digital financial services and support the development of a robust digital payments ecosystem in Pakistan.

The regulatory sandbox will also help SBP to understand the implications of new and innovative FinTech solutions for financial stability and consumer protection, and to issue appropriate instructions and regulations accordingly.

SBP has invited feedback from banks, FinTechs, industry experts, public and all interested parties on the draft guidelines, which are available on the SBP's website. The consultation period will end on January 8, 2024.