State Bank of Pakistan (SBP) has revoked the in-principle approval and pilot operations approval granted to M/s. TAG Innovation Pvt. Ltd. to operate as an Electronic Money Institution (EMI) with immediate effect as per the applicable laws.
SBP has taken this decision to protect the interest of public at large after identifying violation of its regulatory requirements and other concerns during the pilot operations of the company.
Electronic Money Institutions (EMIs) are entities that offer innovative, user-friendly and cost effective low value digital payment instruments like wallets, prepaid cards, and contactless payment instruments.
M/s TAG has been advised to close all customers’ wallets and remove their application from Google’s Play Store and Apple’s App Store and any other platform with immediate effect.
In August, the State Bank of Pakistan (SBP) had ordered TAG to refund all outstanding funds to its wallet holders by August 19 after the EMI had violated SBP’s regulatory requirements and other concerns during its pilot operation.
It is pertinent to mention that Electronic Money Institutions (EMIs) licenses are issued by 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.