Banks asked to digitise corporate payments

KARACHI: The State Bank of Pakistan on Friday made it mandatory for its regulated entities (REs) including banks, microfinance banks, payment system operators and payment system providers to provide digital means of payments to their corporate clients.

The central bank in a statement asked the regulated entities to facilitate their institutional clients, including corporations, companies, and partnerships for making large value payments through digital channels.

“They are now required to extend online portals/platforms for digital payments and receipts of corporates, including online interbank fund transfer services, online bill/invoice sharing and payment services like over the Counter (OTC) digital payments services/facilities, card payments using Point of Sale (POS) terminals, QR codes, mobile devices, ATMs, Kiosk or any other digital payments enabled device,” the statement read.

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In order to monitor progress on implementation of these instructions, SBP instructed banks to submit a road map of implementing these measures within 30 days. They are also required to submit quarterly progress reports to the central bank on the number of businesses facilitated for digitization of their payments and receipts.

“SBP expects that these measures would increase documentation of value chains and help businesses manage their large value transactions more effectively,” the statement said.

“The initiative will also facilitate implementation of Federal Board of Revenue’s recently introduced measures on integration of businesses with FBR system and conducting of corporate payments through digital means.”