The State Bank of Pakistan (SBP) has issued prepaid card regulations to promote electronic payments in the country by introducing alternate digital means of payments.
Under the new regulation, prepaid card customers will be able to withdraw cash and transfer funds from ATMs, pay exam fee, shop online and travel abroad without requiring or compromising the debit/credit card.
The new regulations have been developed in line with the global recommendations issued by Financial Action Task Force (FATF). They will aim to reduce the anti-money laundering and countering financing of terrorism (AML/CFT) risks associated with the prepaid cards.
SBP believes that the regulations will enable Pakistani banks to develop the prepaid cards market in the country in order to provide more payment options to the unbanked population, while at the same time take steps to ensure safety, security and customer protection as per international standards.