State Bank of Pakistan (SBP) has issued Electronic Fund Transfers (EFT) Regulations on Wednesday in order to set the minimum information required from sender and beneficiary in a payment system message which is used to complete EFT.
Electronic Funds Transfer (EFT) allows users to access their bank accounts digitally in order to transfer funds to another account using channels such as; Internet, ATMs and Mobile Banking. The major purpose to serve with these regulations is to promote EFTs in the country, SBP wants to ensure that consumers are protected and the payment systems are transparent by elevating the standard and implementing uniform regulations, procedures and policies that are applicable to All Financial Institutions (AFIs), Payment Service Providers (PSP) and Payment System Operators (PSOs) in Pakistan.
The regulations focus on highlighting the responsibilities of originator/sender, PSP or PSO and beneficiary, Preauthorized Transfers, Compensation Policy for unauthorized and delayed EFT.
However, EFTs that are used for C2B or Customer to merchant payments in a shopping environment or the purchase of goods and services will not come under the hood of these regulations.
These regulations will be applicable to domestic EFTs, being offered by AFIs or PSOs which are initiated through alternative delivery channels (ADCs) such as POS (Point of Sale) terminals, ATMs, mobile banking, internet banking, call center banking, branchless banking platforms and any other channel as and when approved by SBP.
SBP has informed AFIs to activate EFT services for only the payment instruments and channels that require consumer consent. The consent for existing consumers should also be obtained for the purpose of regularization.
The SBP said the Originator’s AFIs (Originator is the Person who initiates the EFT) will have effective systems to identify suspicious EFT transactions.
The beneficiary’s AFIs will reverse the EFT immediately in case beneficiary notifies the bank about the incorrect credit in his or her account and put in place effective systems to identify suspicious EFT transactions.