What the state bank of pakistan guidelines mean for banks - Retail Banker International

As digitalisation continues to transform economies worldwide, Pakistan has seen an exponential rise in the volume of digital transactions. In the third quarter of fiscal year 2023, overall e-banking transactions rose by 4.3% in volume and 10.7% in value – reflecting how the convenience of digital banking has encouraged consumers and businesses to increasingly adopt this type of payment.
However, the rising tide of online transactions has brought with it an unwelcome surge in fraudulent activities, with over 30,000 complaints of financial scams being registered last year. In response, the State Bank of Pakistan (SBP) has decided to put up a strong and proactive defence, releasing a series of new measures to combat online fraud.
The State Bank of Pakistan’s approach
The State Bank of Pakistan (SBP) has instructed commercial banks and microfinance institutions to improve their digital fraud prevention strategies – with a comprehensive set of guidelines for banks to follow by December 31, 2023. They have emphasised that banks will be held responsible for lost customer funds stemming from delayed remedial actions or control measures.
Such regulations require financial institutions to establish a robust real time digital fraud prevention policy and consistently review and refine their digital fraud risk management processes and customer complaint mechanisms. This is part of a long-term objective to boost digital financial inclusion, which includes enhancing customer trust in the...

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