Generated from the document text · 19 Aug 2026
The Electronic Fund Transfers (EFT) Regulations 2018 issued by the State Bank of Pakistan establish the regulatory framework for electronic fund transfers in the country. The regulations prescribe mandatory authorization procedures that financial institutions and payment service providers must follow before executing electronic transfers. Key provisions include fee disclosure requirements ensuring transparency in charges levied on consumers, and liability rules that allocate responsibility between financial institutions, service providers, and consumers in cases of failed or unauthorized transfers. The regulations apply to banks, microfinance banks, and payment service providers operating within Pakistan's digital payments ecosystem.
Key questions answered
What types of electronic fund transfers are covered under these regulations?
The regulations cover all forms of electronic fund transfers including interbank transfers, mobile banking transactions, internet banking transfers, and card-based payments. The framework applies to banks, microfinance banks, and payment service providers authorized by the State Bank of Pakistan to offer such services.
What are the authorization requirements before processing an EFT?
Financial institutions must implement proper customer authentication and verification procedures before executing any electronic fund transfer. This includes verifying customer identity, validating account ownership, and obtaining explicit authorization for the transaction amount and recipient details as specified under the regulations.
What fee disclosure obligations do EFT service providers have under these regulations?
Service providers are required to transparently disclose all fees, charges, and commissions applicable to electronic fund transfers to consumers before the transaction is initiated. This includes any transaction fees, convenience charges, and currency conversion fees where applicable.
How is liability allocated when an unauthorized or fraudulent transfer occurs?
The regulations establish a liability framework that holds financial institutions responsible for unauthorized transfers resulting from institutional failures, while consumers may bear limited liability for transfers resulting from their own negligence such as sharing credentials. Financial institutions must investigate unauthorized transfer claims within prescribed timeframes.
What are the compliance requirements and potential penalties for non-compliance under these regulations?
Payment service providers and financial institutions must maintain proper systems, procedures, and internal controls compliant with SBP guidelines for processing electronic fund transfers. Non-compliance may result in regulatory actions including penalties, suspension of EFT operations, or revocation of authorization to provide payment services.
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