| Abstract | The legal framework for the authorisation of the issue of multi-purpose stored value card schemes is contained in the Banking (Amendment) Ordinance 1997 which has come into full operation on 15 May 1997. The new legal framework aims to protect the stability of the payment system and at the same time provide some flexibility for service providers to issue multi-purpose cards to improve their service to customers. Under the Ordinance, only licensed banks and special purpose vehicles would be allowed to issue multi-purpose cards. Existing restricted licence banks and deposite-taking companies would not be allowed to issue multi-purpose cards. The Monetary Authority may, under limited circumstances and subject to conditions, exempt certain cards from such approval requirements. |
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