SBP Releases Draft Open Banking Regulations for Public Consultation
SBP releases draft Open Banking regulations to strengthen Pakistan’s digital financial services.
The State Bank of Pakistan (SBP) has released draft Open Banking Regulations for public consultation, seeking to promote innovation, encourage competition and expand access to customer-focused digital financial services.
The proposed framework aims to give customers greater control over their financial data. It would allow secure, consent-based data sharing and enable business payments through authorised Third-Party Providers (TPPs).
Draft Rules Target Digital Payments
The regulations aim to support the digitisation of business-to-business (B2B) and consumer-to-business (C2B) payments.
They would also create opportunities for financial institutions and authorised providers to develop services using customer-approved financial data.
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These services could include more comprehensive credit assessments, improved financing access for small and medium enterprises (SMEs) and financial products tailored to customers’ needs.
Data Protection and Consumer Safeguards
The draft regulations include safeguards covering data protection, privacy and cybersecurity. They also address fraud prevention and consumer protection.
The SBP said the proposed framework draws on international best practices. It also takes into account findings from the recently completed first cohort of its Regulatory Sandbox on Open Banking.
Supporting Pakistan’s Digital Financial Ecosystem
The proposed regulations form part of the SBP’s broader strategy to advance digital financial services.
Through secure data sharing and payment initiation, the framework aims to create a more connected, inclusive and efficient financial ecosystem.
The SBP has invited public feedback on the draft regulations as it moves towards developing the regulatory framework for Open Banking in Pakistan.
