SBP directs banks to ensure timely transaction alerts

KARACHI: The State Bank of Pakistan (SBP) on Monday directed the banks to ensure timely transmission of transaction alerts.

The SBP issued instructions to the banks regarding security of digital payments. The central bank previously issued these instructions on November 28, 2018. However, it expressed displeasure that many banks were not following such guidelines.

The central bank in its notification of November 2018, directed the banks and microfinance banks (MFBs) to send free of cost transaction alerts to their customers through both SMS and email (where email addresses of customers are available) for all international and domestic digital transactions including but not limited to ATMs, POS terminals and internet banking transactions.

It was also mentioned that such transaction alerts will be generated and relayed to the customers immediately after execution of the transaction.

However, it has been observed that these instructions are not being meticulously complied with, and customers do not receive SMS alerts immediately despite posting of transactions in their accounts resulting in non-compliance of regulatory instructions as well as causing difficulty for sender and receiver of funds, the SBP in letter said.

Similarly, a number of times, customers also do not receive their One-Time Passwords (OTPs) via SMS on time due to which they face difficulty in completing their transactions.

Banks/MFBs are henceforth advised to ensure that all OTPs as well as SMS alerts for financial transactions are generated and sent immediately after customers’ accounts are either debited or credited, the central bank directed.

In addition, customers will also receive the credit/debit confirmation advice through email and in-app notifications (where applicable and available).

The instructions are applicable with immediate effect and failure to comply with the above instructions will lead to penal action by the SBP as per the relevant legal and regulatory provisions.