LegCo Paper No. CB(1) 487/96-97(02)

Paper for the Bills Committee
Banking (Amendment) Bill 1996
Exemption criteria for stored value cards : the way forward

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The HKMA's paper on "Limitations on the usage of stored value cards issued by non-bank entities" was discussed at the meeting of the Bills Committee on 8 November 1996. Although members of the Committee held mixed views on the proposed exemption criteria, overall the Committee did not object to the proposed approach.

The HKMA now intends to hold further consultation on its proposals with other interested parties, including the Banking Advisory Committee and the Deposit-taking Companies Advisory Committee. It will also be necessary to hold further discussions with non-bank issuers, including Creative Star. As noted in the paper discussed at the November meeting, we will need to agree with Creative Star the number and type of outlets at which their card could be used on "transport operators' premises" and the exact definition of such premises. We shall also wish to satisfy ourselves that the exemption criteria could sensibly be applied to other potential non-bank issuers, and not simply to Creative Star.

Following this consultation, it would be our intention to set out the authorisation and exemption criteria in a new chapter of the HKMA's "Guide to Applicants for authorisation under the Banking Ordinance".

Hong Kong Monetary Authority
December 1996

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