STATE BANK OF PAKISTAN PAYMENT SYSTEMS POLICY & OVERSIGHT DEPARIMENT I, CHUNDRIGAR ROAD KARACHI PSP&OD Circular Letter No. 05 of 2021 October 15, 2021 ‘The CEOs / Presidents, All Banks/Microfinance Banks/PSOs/PSPs Enhancing Digitization Initiatives in Banks/MFBs Please refer to PSD Circular No. 1 of 2021 dated March 10, 2021, regarding the captioned subject wherein State Bank of Pakistan (SBP) has given regulatory instructions to banks and MFBs to promote digitization in the banking sector and usage of digital channels for banking and payment services. 2. In order to further facilitate small businesses/corporates and encourage them to adopt, digital means of payments, it has been decided that henceforth Banks/MFBs/PSOs/PSPs (herein referred to as Regulated Entities (REs)), shall mandatorily provide digital payments and facilitation of financial services, to. the _ institutional clients (Corporation/Companies/Partnerships), including but not limited to: a) Online portals/platforms for digital payments/receipts b) Online Interbank Fund Transfer services ©) Online bill/invoice presentment and payments services 4) Over the Counter (OTC) digital payments services/facilities ©) Card payments using Point of Sale (POS) terminals, QR codes, mobile devices, ATMs, Kiosk and/or any other digital payments enabled devices ) Any other digital/online payment modes 3. _REs shall ensure that a comprehensive authority matrix and necessary access controls are in place to avoid any unauthorized use of online corporate portals as well as other means of digital payments. 4, For improved reporting purposes, REs shall ensure that all modes of transactions i.e, cash, digital, paper-based are recorded with proper identifiers for each transaction. 5. For invoice-based transactions, REs shall create provision in their systems to record ayer and payee account numbers/IBAN, title and type (individual/business), where available, and invoice numbers. 6. REs shall submit detailed plan/oadmap along with timelines, within 30 days from the issuance of this Circular Letter, for the implementation of the above provisions. ‘Phone: 021-33113434 Email: psdpolicy@sbp.org. pkSTATE BANK OF PAKISTAN PAYMENT SYSTEMS POLICY & OVERSIGHT DEPARTMENT 1, I. CHUNDRIGAR ROAD KARACH 7. In addition to the above, REs shall also make all efforts to onboard non-corporate players including Sole Proprietors, SMEs and MSMEs for the provision of digital payment services. To monitor performance, REs are advised to provide the requisite information as per Annexure A on quarterly basis by the 15" of every month for the preceding quarter. For this purpose, banks are encouraged to enter into partnerships with other FinTechs including EMIs, payment aggregators, PSOs and PSPs, 8. All other instructions including but not limited to compliance of AML/CFT/ CPF laws and regulations on the subject shall remain unchanged. Please acknowledge receipt, Enel: Annexure A. Yours faithfully, M Shoulat Bizinjo (Additional Director) ‘Phone: 21-331 13434 7 "Email psdpolig@sbp.orgnkSTATE BANK OF PAKISTAN PAYMENT SYSTEMS POLICY & OVERSIGHT DEPARTMENT I. CHUNDRIGAR ROAD Name of the Reporting Entity: Period of Reporting: Date of Reporting: KARACH Annexure A PSP&OD Circular Letter No. 05 of 2021 ‘No. of New Clients On-boarded during the quarter (Sole Proprietors, SMEs and MSMEs) Total No. of Business Clients on-boarded (Sole Proprietors, SMEs and MSMEs) Number of business clients provided digital services mentioned at Clause 2 (a-f) Phone: 021-33113434 Email: psdpolicy@sbp.org.pls