Forex cos allowed branchless banking

KARACHI: The State Bank of Pakistan (SBP) on Thursday allowed foreign exchange companies to conduct branchless banking activities – an attempt to leverage technologies to promote financial inclusion, said a circular on Thursday.
“This is a positive development for the exchange companies as these companies are instrumental in channelising workers’ remittances,” an analyst said.
The exchange companies will conduct branchless banking activities as agents of authorised financial institutions, such as commercial / Islamic / microfinance banks, offering these services under branchless banking regulations issued in 2011. “An exchange company shall not portray itself as banking company or authorised financial institution as defined in branchless banking regulations,” it said.