SBP initiates action against EMI

KARACHI: The State Bank of Pakistan (SBP) on Thursday said it took regulatory action against TAG Innovation Private Limited, an Electronic Money Institution (EMI), for violating the SBP’s regulatory requirements during the pilot operations.

The SBP on August 4, 2022, advised TAG Innovation Pvt. Ltd., currently in the pilot stage of the EMI licensing process, to refund all outstanding funds to its wallet holders immediately but no later than August 19, 2022, SBP said in a statement.

“This action has been taken after identification of violations of SBP’s regulatory requirements and other concerns during the pilot operations of M/s TAG.”

EMIs licenses are issued by the SBP to non-bank entities in three stages i.e. In-Principle Approval, Pilot Operations Approval and Commercial Operations Approval. Moreover, pilot operation is conducted to assess the readiness of the business for commercial operations and only after its successful completion, license to commence commercial operations is granted to the respective EMI.