SBP issues notice to banks

KARACHI: The State Bank of Pakistan (SBP) on Wednesday said banks must activate their online banking services for clients by the end of this month to ensure there is no disruption in the collection of government taxes.

“While most of the banks have activated the OTC (over the counter) and ADC (alternative delivery channels) facilities for collection of FBR taxes, some banks/MFBs (microfinance banks) are still in the process of activating these facilities,” the SBP said in a circular.

“Further, most of the banks customers are still unaware about these facilities and are still paying their taxes under the traditional system at NBP and SBP-BSC branches,” it added. The SBP asked those banks that have not yet activated the OTC and online tax payment facilities to ensure the activation of the same by October 31, 2018. The banks should also create awareness among their account holders/customers about the payment facility by sending SMS to all their customers on monthly basis till June 30, 2019, and displaying awareness messages on their websites and ATM screen, according to the SBP.