KARACHI: The State Bank of Pakistan (SBP) has directed M/s TAG Innovation - an Electronic Money Institution (EMI) under the licensing process, to refund all outstanding funds to its wallet holders immediately.

M/s TAG Innovation Pvt Ltd is currently in pilot stage of Electronic Money Institution (EMI) licensing process.

The State Bank Thursday advised M/s TAG Innovation to refund all outstanding funds to its wallet holders immediately but not later than August 19, 2022.

The SBP has taken this action after identification of violations of the SBP’s regulatory requirements and other concerns during the pilot operations of M/s TAG.

Electronic Money Institutions’ licenses are issued by the SBP to non-bank entities in three stages, ie, in-principal 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.

Copyright Business Recorder, 2022