SBP instructs banks to not take service fees for internet, mobile banking
By Muhammad JuniadPublished On 06 Jan 2023
- SBP directs all banks to provide a minimum set of services on their internet and mobile banking channels to customers.
- Central banks order banks to issue debit cards to all new account holders and those who opted not to take a card at the time of opening.
- Banks told to hire a chief digital officer to accelerate the digitization process in the banking sector.
KARACHI: To promote digitization in the banking sector, the State Bank of Pakistan (SBP) has directed banks not to charge customers a service fee for internet and mobile banking.
The central bank has directed all banks to provide a minimum set of services on their internet and mobile banking channels to all customers.
These services include bill payments, funds transfer/interbank fund transfer, beneficiary management, limit management, credit and debit card management, and stop cheque payment.
“To encourage the use of the internet and mobile banking services by their customers, banks will not levy any activation, subscription or annual charges on their customers for using such services,” the SBP said in a statement.
The SBP said that digitization of the entire payment process was facing a roadblock as the bank policy stated that customers can make payments to only those billers that are registered with their bank.
“Hence, in order to facilitate the customers, the banks have been advised to make necessary arrangements to ensure that their customers can make online payments to maximum number of billers,” said the SBP.
The SBP has also directed banks to issue debit cards to all new account holders and those individuals who opted not to take a card at the time of the opening of the account. It said the banks will not be allowed to issue a debit card only if the customer refuses to take one.
Apart from those refusing to take a debit card, the SBP said the direction will not be applicable for customers who are not literate, photo account holders, and visually impaired persons.
Banks have been authenticating their customers at the bank counters using signatures and paper-based instruments.
The existing EMV card infrastructure provides secure authentication.
There is potential to facilitate customers by using this infrastructure to replace the manual authentication process. In this regard, the banks/microfinance banks are now permitted to authenticate their customers at branch counters using chip-and-pin cards and 2-factor authentication and provide them with banking services.
SBP orders banks to hire a chief digital officer
SBP has also ordered banks to hire a chief digital officer to accelerate the digitization process.
“Considering the significance of digitization, banks have also been advised to create a role of a chief digital officer who would be responsible for steering the digitization efforts,” said the SBP.
“Further, accelerated digitization will also be part of KPIs [key performance indicators] of every chief executive officer, which will be monitored by their board for its achievement on at least half-yearly basis.”
Apart from this, the SBP has allowed bank borrowers to repay their debt on alternative delivery channels and streamline the security regulations of a payment card to bring convenience to the consumers with risk coverage that commensurate with the ever-evolving payment card markets and in line with international standards.
