ALLOWING BRANCHLESS BANKING BUSINESS TO EXCHANGE COMPANIES AS AGENTS OF AUTHORIZED FINANCIAL INSTITUTIONS
FE Circular No. 04 of 2015 April 02, 2015
The Chief Executives of all
Exchange Companies &
Exchange Companies of ‘B’ Category
Dear Sirs / Madam,
Allowing Branchless Banking Business to Exchange Companies as agents of Authorized Financial Institutions
Attention of exchange companies of both categories is invited to instructions contained in FE Circular No. 09 dated July 30, 2002 and FE Circular No. 06 dated June 7, 2004 and other instructions defining the scope of business of exchange companies.
It has been decided to allow exchange companies to conduct branchless banking activities as agents of authorized financial institutions (commercial/Islamic/microfinance banks) offering these services under Branchless Banking Regulations issued vide BPRD Circular No. 09 dated June 20, 2011.
Exchange companies that intend to offer branchless banking agent services may approach any financial institution authorized to provide branchless banking services under Branchless Banking Regulations. An exchange company shall start providing these services on behalf of the authorized financial institution as and when the financial institution has been approved by the Banking Policy & Regulations Department, State Bank of Pakistan for appointing that exchange company as the agent.
Further, an exchange company shall not portray itself as banking company or authorized financial institution as defined in Branchless Banking Regulations.
Exchange companies shall intimate such arrangement and submit related agreement to Exchange Policy Department, State Bank of Pakistan, Karachi for information.