Tag: Transactions

  • July remittances post significant hike

    July remittances post significant hike

    The Pakistani diaspora has sent $3 billion back home in July, 48 percent higher than the previous year, The News has reported.
    State Bank Pakistan (SBP) data shows that remittances from Saudi Arabia increased by 56 percent to $761 million in July, while those from the United Arab Emirates increased by $611 million.
    The percentage reflected a 94 percent surge from the UAE compared to July 2023.

    Remittances from the United Kingdom totaled $443 million, a 45 percent increase from the previous year. Workers also sent $300 million from the United States, a 24 percent hike from last July.
    The research director at AKD Securities Limited, Awais Ashraf said, ‘’This increase is mainly due to the movement of worker remittance into the formal channel, spurred by the reduced rate difference between exchange companies and the interbank market’’.

    Throughout FY24, Pakistan posted a current account deficit of $681 million, equivalent to 0.2 percent of the gross domestic product.

  • 1.5% transaction fee for debit and credit cards abolished by SBP

    1.5% transaction fee for debit and credit cards abolished by SBP

    The mandatory minimum fee of 1.5 per cent that banks were required to charge merchants on financial transactions made with debit and credit cards has been eliminated by the State Bank of Pakistan (SBP), and financial institutions are now permitted to charge even less than that amount to encourage the use of digital banking.

    According to a notification released on Friday, the central bank has kept the fee’s upper ceiling at 2.5 per cent.

    Also, the SBP mandated that all online merchants and payment recipients in Pakistan begin taking card payments no later than June 30, 2023.

    Before, petrol outlets stopped taking payments made with debit and credit cards and asked that the 1.5 per cent fee be eliminated.

    The elimination of the minimal fee has long been demanded.

    Eliminating the minimal fee is a good thing for digital transactions, according to experts. The State Bank’s plan to boost the use of digital cards includes this, as this decision would also improve the documentation of the economy and help decrease cash-based transactions.

    Across the nation, there are about 45 million debit and credit cards. Nonetheless, the majority of cardholders use their cards to make ATM withdrawals. Just 5–10 per cent of POS users utilise cards.

  • President takes notice of increasing online bank frauds in Pakistan

    President takes notice of increasing online bank frauds in Pakistan

    President Dr Arif Alvi has taken serious notice of the rising trend of online banking frauds where fraudsters obtained contact details of banks’ clients by impersonating bank officials to get account and banking information and then used these details to swindle money out of clients’ accounts.

    In a press release released on Saturday, the President directed the Banking Mohtasib of Pakistan (BMP) to take serious notice of this worrisome trend and implement meaningful, effective measures, such as appropriate checks and balances and foolproof security systems that could distinguish between genuine and fraudulent transactions, to curb this threat urgently.

    A renowned novelist and playwright, Mirza Athar Baig, had his bank account robbed of Rs1.1 million by an online fraudster, according to news reports. The president’s secretariat has asked Baig to lodge a complaint and formally raise the issue with BMP to get relief from the bank.

    Under the president’s direction, the president’s secretariat has advised Mirza Athar Baig to file a complaint and formally raise the issue with the BMP in case the bank is unable to fix his problem and reimburse him within the allotted time limit.

    Even though he had resolved hundreds of such cases through the BMP and given comfort to those who had been affected by internet frauds, the president expressed disappointment that fraudulent activities and practises were growing in the banking sector.

    Additionally, he underlined the importance of bringing about structured and methodical improvements in online banking systems by swiftly detecting fraudsters and enforcing severe, exemplary sanctions against them.

  • SBP instructs banks to inform customers in advance about downtime of digital banking services

    SBP instructs banks to inform customers in advance about downtime of digital banking services

    The use of banking apps and sites for carrying out day-to-day transactions has considerably increased. However, it has been noted that in cases of service outages, customers are not properly informed in a timely manner, due to which they face issues with transactions.

    Now, in order to ensure that customers are informed about service disruptions due to any scheduled or unforeseen activity, the State Bank of Pakistan (SBP) has issued fresh instructions to facilitate the customers of the financial institutions.

    According to the most recent instructions, banks must now notify customers and the SBP of any planned activity that may result in service disruptions.

    Financial institutions are required to inform customers at least two days in advance through SMS alerts, social media platforms, and in-app notifications, while SBP will be notified at least one week in advance for any maintenance activity.

    SBP, as part of its oversight responsibility, will regularly monitor the availability of digital channels itself.

    Monthly cumulative downtimes must be reported to SBP. The central banks shall be apprised of the actions taken by the relevant bank to avoid inconvenience in the future if the unforeseen outage exceeds three hours each quarter.

  • Pakistani banks start charging dollar transactions at open market rates

    Pakistani banks start charging dollar transactions at open market rates

    Pakistani banks have announced that they will settle debit and credit card transactions made with foreign retailers and websites at the open market exchange rate for the US dollar.

    The conversion rate for the transactions would be calculated by the open market rate in place at the time, which might not match the rate listed on the foreign merchant’s website.

    Customers were advised by the banks in a statement that they could only settle debit or credit card purchases with foreign retailers or websites by buying dollars on the open market. As a result, the conversion rate for these transactions will be determined by the current open market rate.

    The statement, according to bankers, was made in response to several client concerns over the increased exchange rate.

    On Friday, the Pakistani rupee lost Rs0.02 to the US dollar in the interbank market, continuing its downward trajectory.

    The State Bank of Pakistan (SBP) reported that the exchange rate of the local currency for the dollar was Rs227.12. Which shows a 0.01 per cent decline from the close of Rs227.12 on Thursday.

    According to SBP, the Pakistani rupee is valued at Rs227–228 against the dollar. However, in the open market, the greenback is priced above Rs250 and goes as high as Rs275.

  • Finance Ministry agrees to IT minister’s suggestion regarding Google payments

    Finance Ministry agrees to IT minister’s suggestion regarding Google payments

    Following the Ministry of Finance’s decision to allow blocked payments to international service providers, including Google, on the advise of IT Minister Aminul Haque, Pakistan averted the suspension of paid Google Play mobile apps on Thursday.

    A $34 million payment suspension by the State Bank of Pakistan (SBP) to foreign service providers might have prevented inward mobile users from downloading paid Google Play Store services using their cell balance as a source of payment starting on December 1, 2022.

    After the SBP stopped using the direct carrier billing (DCB) mechanism, a $34 million payment to foreign service providers like Google, Amazon, and Meta was put on hold.

    Using their mobile phone carrier bill as a form of payment, users of the DCB online mobile payment system can make purchases.

    According to Geo, customers of telecommunications firms can buy these products using airtime and send money abroad to pay for IT-related services.

    However, Tariq Bajwa, the Special Assistant to the Prime Minister (SAPM) on Finance, got in touch with Haque and expressed his thoughts on the payments that had been halted.

    The Finance Ministry agreed to distribute the payments on schedule, the IT minister later confirmed.

    Insisting that “paid Google Play apps will not be suspended in Pakistan,” he said that the Finance Ministry had instructed the SBP to postpone for one month the implementation of the policy that had blocked payments.

    He stated that the payment method must be implemented by telecom companies within a month.

    According to the IT minister, the ministry has written to the finance minister, Ishaq Dar, requesting a timeline for the implementation of the telecom operators’ request for help from the government. Haque commended Dar and Bajwa for their prompt judgement.

  • All banks to remain open this Saturday

    All banks to remain open this Saturday

    State Bank of Pakistan has recently announced that all banks and their branches would be open on Saturday, April 30, 2022.

    In accordance with SBP’s orders incorporated in Banking Policy and Regulations Department (BPRD) Circular Letter No. 11 of 13 April 2022, all banks and their branches will remain open on Saturday, April 30, 2022.

    Following the announcement by the Pakistani government of public holidays on the occasion of Eid-ul-Fitr from May 2 to May 5, the general public is encouraged to conduct their banking transactions on Saturday, April 30, 2022.

    Read more: Pakistan’s forex reserves inch up to $17.05 billion

    Moreover, banks have been advised to make Alternate Delivery Channels (ADCs) such as ATMs, Mobile Banking, and Internet Banking available 24 hours a day, seven days a week during the Eid holidays.