The President of Forex Association of Pakistan, Malik Bostan, has praised the branch-less banking facilities given to money exchange dealers by the Federal Finance Ministry and the State Bank of Pakistan (SBP). Talking to APP here on Tuesday, he said that provision of these facilities will not only promote business activity but also increase remittances and foreign exchange reserves.
He said that branch-less banking is a laudable initiative, adding that this facility has benefited overseas Pakistanis in sending remittances. Malik Bostan informed that the SBP had taken the step of introducing branch-less banking around two months ago. Under the initiative, exchange dealers have been allowed to make agreements with banks to use their products.
He noted that there is a large volume of money in branch-less banking, adding that after agreement dealer becomes agent of bank. He pointed out that exchange companies can become dealer of several banks at the same time. Malik Bostan said, "After an agreement with any bank, Exchange Company informs the Central Bank to get a Non-Objection Certificate.
The Forex Association's President said that exchange companies are bringing a huge amount in the country in the shape of workers' remittances which is improving foreign exchange reserves. He said the main benefit of this branch-less facility to overseas Pakistanis is that they get all facilities under one roof besides easy payment of remittances sent by them. Answering a question, he said that the government has taken very good steps for the economic development that will help eradicate unemployment. Replying to another question, he said that the SBP has also allowed dealers to use automated transfer machine (ATM).