State Bank sets new rules for electronic funds transfer

KARACHI: The State Bank of Pakistan (SBP) on Wednesday unveiled new guidelines for electronic funds transfer to ensure consumer protection and payment transparency.

The guidelines define how customers should electronically access their bank accounts for fund transfer, using automated teller machines (ATMs), internet and mobile devices. The regulations will be effective from October.

“The purpose of these regulations is to promote electronic funds transfer (EFTs) in the country, ensure consumer protection and payment transparency by standardising EFT as broadly outlined in Payment System and EFT Act 2007,” the SBP said in a statement. The objective is to set uniform regulations, policy and procedures, applicable to authorised financial institutions and payment system operators in Pakistan.

These regulations will be applicable to domestic EFTs, being offered/processed by banks and payment system operators/providers, which are initiated through alternative delivery channels, such as point of sale terminals, ATMs, mobile, internet, call centre or branchless banking platforms, Pakistan real-time interbank settlement mechanism and any other channel as and when approved by the SBP. The central bank said electronic fund transfers used for customer to merchant payments for the purchase of goods and services will not come under the purview of the regulations.