Updated Sep 12, 2018 08:07am

Banks not to charge fee on electronic payments

The Newspaper's Staff Reporter

KARACHI: The State Bank of Pakistan (SBP) on Tuesday directed all banks not to charge any variable transaction fee (interchange, merchant discount rate etc) on payments made to federal and provincial governments using electronic modes of payments including payment cards and electronic wallets etc.

“The acquiring banks, however, may charge a pre-determined flat service fee from the government concerned entities with mutual agreement,” said the central bank. These instructions will be applicable at the time of signing of new agreement or the renewal of existing agreements, it added.

“All issuing and acquiring banks, microfinance banks and payment schemes are advised to comply with these instructions,” the SBP said.

Published in Dawn, September 12th, 2018

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