The State Bank of Pakistan (SBP) is going to introduce Cashless Banking through Asan Mobile Accounts (AMA) from 1st July 2017, due to which all Banks’ account holders in far-flung areas can easily make their payments through their modern or ordinary mobile phones.
This was disclosed by Executive Director, Development Finance Group (DFG) SBP Syed Samar Hasnain while rebranding the name of Tameer Microfinance Bank as Telenor Microfinance Bank in a grand ceremony.
“The SBP is working on Asan Mobile Accounts and making regulations with all the stakeholders,” Mr Hasnain said. Initially, more than 10 banks have applied for the licenses of mobile banking, which would be linked with one window like ATM machines (1-Link) and the account holders of all the banks can easily pay their bills at petrol pumps, general stores and pay their utility bills etc through their ordinary phone accounts, he added.
He said the idea of ‘Cashless Banking’ is submitted by a private institution, but the SBP is mulling that anyone can take an initiative on it after a getting license from the SBP. In this connection, the SBP had made all the rules and regulations and would launch AMA by the end of June 2017.
For this cashless banking, “it is necessary that everyone have their accounts in the banks and all the banks are connected with this system,” Mr Hasnain observed. There would be a limit of cash payments and such account holders cannot make big payments through their mobiles as the SBP wants to bring more innovations into the branchless banking system through AMA. We have all kinds of support of the central bank and the World Bank in this regard, he added.
He further said the NADRA has also agreed to facilitate the account holders of AMA with a minimum fee of Rs 10 per account or less and it will verify identities of all account holders of AMA.
He said that in Pakistan, only 16 per cent adults have their accounts in banks and the State Bank wants to increase this up to 50 per cent in the coming years.
Earlier in his speech, Syed Samar Hasnain pressed the button to rebrand the names of Tameer Microfinance Bank to Telenor Microfinance Bank.
He congratulated the management of Telenor Microfinance Bank over getting 100 per cent shares of Tameer Microfinance Bank and rebranding its name. This bank, established in 2005, is best known for its joint venture with Telenor Pakistan for the launch of Pakistan’s first, and now the largest branchless banking service, Easypaisa, in 2009.
Speaking at the event, he said, “I congratulate Telenor Microfinance Bank on its successful transition and appreciate its lead in providing digital financial services to millions of Pakistanis. I am positive that the bank, with a mobile banking platform like Easypaisa, will continue to promote financial inclusion in the country. The SBP will continue supporting the initiative aimed at providing financial services to the segments which are still excluded from the mainstream financial system.
President and CEO of the bank, Ali Riaz Chaudhry announced the new corporate identity at a media briefing. He added, “Our new name represents a significant foreign direct investment in Pakistan’s banking sector. We are proud of pioneering the journey of innovating financial services ecosystem in Pakistan, which started with the launch of EasyPaisa – our mobile banking platform and a catalyst of future banking. As we continue to grow, we remain committed to empowering the underserved people of Pakistan through convenient, affordable and secure digital financial services.”
The management of Telenor Microfinance Bank remains the same and all future business activities will be conducted under the new name.
