Branchless Banking

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Branchless Banking 
Regulations 
for Financial Institutions Desirous to 
undertake Branchless Banking 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banking Policy & Regulations Department 
State Bank of Pakistan 
March 31, 2008 

 
 
The Branchless Banking Team 

Syed Irfan Ali 

Syed.Irfan@sbp.org.pk  

Sabah uz Zaman 

Sabah.Zaman@sbp.org.pk 

Qasim Nawaz 

Qasim.Nawaz@sbp.org.pk  

Muhammad Javaid Ismail 

Javaid.Ismail@sbp.org.pk  

Muhammad Akhtar Javed 

akhtar.javed@sbp.org.pk 

Sajid Mahmud  

Sajid.Mahmud@sbp.org.pk   

Rajesh Raheja 

Rajesh.Raheja@sbp.org.pk  

Usman Shafiq 

usman.shafiq@sbp.org.pk 

[i]

Table of Contents 
1

Introduction ................................................................................................................. 1 1.1
Background ......................................................................................................... 1 1.2
Objectives ........................................................................................................... 1 1.3
Scope ................................................................................................................... 1 2
Definitions................................................................................................................... 2 3
Permissible Branchless Banking Models and Activities ............................................ 3 3.1
Permissible Models ............................................................................................. 4 3.2
Permissible Activities ......................................................................................... 5 4
Risk-Based Customer Due Diligence ......................................................................... 6 5
Key Roles & Responsibility........................................................................................ 8 5.1
Board of Directors............................................................................................... 8 5.2
Senior Management ............................................................................................ 8 5.3
Compliance Officer ............................................................................................. 8 5.4
Internal Auditors ................................................................................................. 9 6
Agents-Assisted Banking ............................................................................................ 9 6.1
Role of Agents .................................................................................................... 9 6.2
Agent Structure ................................................................................................. 10 6.3
Agent Due Diligence......................................................................................... 10 6.4
Agency Agreement ........................................................................................... 10 6.5
Agent Development .......................................................................................... 11 7
Use of Third-Party Service Providers ....................................................................... 12 8
Risk Management Program....................................................................................... 12 8.1
Agents Related Risks ........................................................................................ 12 8.1.1
Risk Implications of Use of Agents .......................................................... 12 8.1.2
Risk Management for Agent Related Risks .............................................. 13 8.2
Wireless/ e-Banking Technology Risks ............................................................ 13 8.2.1
Wireless/E-Banking Technology Risk Implications ................................. 14 8.2.2
Wireless/E-Banking Technology Risk Management ................................ 16 8.3
Data & Network Security...
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