The State Bank of Pakistan (SBP) has issued new regulations for Electronic Funds Transfers (EFTs) to encourage more of them across the nation. The regulations are meant to offer security to the customers and build trust through increased transparency. By standardizing the processes and policies there is a greater chance of people becoming familiar with the system instead of learning of separate tools for each transaction.
These regulations will apply to Authorized Financial Institutions (AFIs), Payment System Operators and Payment Service Providers operating in the country. They set the minimum information needed from the originator and beneficiary for an electronic transaction to go through. They also include policies on pre-authorized transactions, penalties and compensation for unauthorized or delayed transactions and requirements for record retention and reporting.
For instance, a mark up of 3% will be paid by the AFIs above the SBP policy rate if the payment is delayed. This of course is dependent on the period of delay and determination and notification of the error. The originator or beneficiary AFI will be liable to the consumer for any unauthorized transaction, loss and/or damages caused by the failure of an electronic fund transfer system or equipment to complete a transaction accepted by a terminal.
The regulations will come into effect on October 1, 2018.