Friday May 24, 2024

State Bank issues rules for mobile banking interoperability

By our correspondents
May 17, 2016

KARACHI: The State Bank of Pakistan (SBP) and Pakistan Telecommunication Authority (PTA) jointly developed regulations for mobile banking interoperability for banks and mobile network operators to enhance outreach and connectivity.

“Following the issuance of regulatory framework for branchless banking (BB) in June 20, 2011, the market had shown appreciable growth in terms of business volumes, branchless banking accounts and agent network,” the SBP said in a notification on Monday.

“BB regulations permit authorized financial institutions to operate many-to-many model where many banks and many mobile network operators, by joining hands, can offer interoperable financial services to all bankable customers.”

The central bank said these regulations aim to create an enabling regulatory environment, bring systemic harmony and introduce standardization and set benchmarks for mobile/branchless banking interoperability.

“The third party service provider model, as stipulated in the regulations, will offer maximum outreach and connectivity whereby all banks and all mobile network operators shall be able to entertain each other‘s customers. The authorized financial institutions should accordingly upgrade their systems, controls and procedures,” it said. “All authorised financial institutions should ensure compliance with the regulations as non-compliance would be dealt with in accordance with the relevant provisions of law.”

Analyst at JS Global Arhum Ghous said volatility prevailed in the market as the index traded between the high of 120 points and the low of 32 points during the intraday session. 

Ghous said volatility in today’s session can be attributed to disturbance on the political front in the country.

Pak Int Bulk continued its upward movement, as it gained to close on its upper circuit for the second consecutive session on the back of the news that it was added to the Morgan Stanley Capital International (MSCI) Frontier Market index in the latest MSCI semi-annual review.

Profit taking was witnessed in MUGHAL, which was down 1.63 percent, as investors came in to book profits after the scrip closed on its upper circuit on Friday.

Highest increase was recorded in Rafhan Maize XD. Its share price rose Rs237 to Rs8,690/share, followed by Nestle Pak XD. Its stock value increased Rs88 to Rs7,088/share. Major decrease was noted in Wyeth Pak Ltd. Its share price fell Rs100 to Rs1,940/share, followed by Pak Tobacco XD. Its stock value decreased Rs51.85 to Rs1,147.15/share.

Significant turnover was recorded in stocks of Dewan Salman, TPL Trakker Ltd, TRG Pak Ltd, Pakistan Telecommunication Company Limited XD, Sui Northern Gas Pipeline Limited, Jahangir Siddiqui Co, Dewan Cement, Pace (Pak) Ltd, Silk Bank Ltd and K-Electric.

Dewan Salman remained the volume leader with 13.28 million shares with an increase of 28 paisas to Rs2.82/share. It was followed by TPL Trakker Ltd with 12.88 million shares with an increase of 93 paisas to Rs14.70/share.  Shares’ turnover in the future contracts decreased to 30.04 million shares from 44.07 million shares traded in the previous session.