Some incidents have been reported to State Bank of Pakistan where banks, after allowing on-line credit or cash withdrawal to the beneficiary, have reversed the entries without any cogent reasons. The reversal of the entries made by the banks was attributed to difference in signature or shortage of funds in accounts.

2. In order to protect the interest of banks, their depositors and/or to avoid any likely dispute with their depositors/beneficiaries, it has been decided that henceforth banks offering on-line banking transactions shall take all possible measures (including compliance of Know Your Customer regulation) to ensure the genuineness of the transaction. Once the transaction is complete, no bank shall reverse the entry except in cases which are permitted under the provisions of law.

3. Since in most cases of on-line banking, the instrument presented for payment at a branch makes the paying branch to also act as a collecting and drawee branch, as such, the responsibility for verification to the genuineness of the account holder / signatures etc. shall be on that branch.

4. Please acknowledge receipt.