Payment Systems Department (PSD) has been working towards creating an enabling regulatory environment towards a modernized and technologically equipped financial sector. This department has been undertaking initiatives aimed at transforming the Payment Systems infrastructure from traditional paper-based mechanisms to electronic modes through channels like ATMs, Point of Sale (POS), Real Time Online Banking (RTOB), Mobile Banking, Call Centres and Internet Banking.

Traditionally the core functions of the Payment Systems Department have been the development of policy and regulation relating to the large value payment systems mainly to address the inherent systemic risk. The policy focus of State Bank has now shifted towards improving the financial inclusion and promoting the Digital Financial Services in the country, achievement of which is tightly linked with the development of a modern and robust payment system. SBP’s focus and efforts have resulted in significant infrastructure, standardization and regulatory development in the payment systems arena during the last decade.

PSD has taken various steps to promote digital banking in the country. Major developments, therefore, in this connection include the adoption of International Bank Account Number (IBAN), standardization of layout and security features of cheques, pay orders and demand drafts, initiation of the Straight Through Processing facility between banks and the RTGS, enabling Pakistan Remittance Initiative (PRI) payments through RTGS, issuing the Regulations for Internet and Payment Card Security, Regulations for Prepaid Cards. 

Rules for PSO and PSP issued in 2014 have been instrumental in developing competitive payment system infrastructure by allowing new entrants pertaining to electronic payment gateway, payment scheme, clearing house, ATM Switch, POS Gateway, E-Commerce Gateway, and so on.

RTGS and NIFT direct membership have also been enabled for Microfinance Banks to ensure greater coverage. These regulatory initiatives are expected to bring new market players as well as introduce new and innovative payment channels and products especially for the retail sector.

PRISM System has been allowed by the banks to timely transfer Inter-Bank Domestic Remittances to beneficiaries, under Pakistan Remittance Initiative (PRI) arrangement. This service is offered free of charge and with no minimum limit.

PSD has been consistently guiding banks to bring standardization in Payment Industry to support technology enabled processing of banking infrastructure. Our collective efforts of standardization and improving security of the cheques and pay orders instrument have become successful.

Contact Details

Payment Systems Department
SBP main building 4th Floor
I.I.Chundrigar roah Karachi
Tel#: 92-21-99221153
Fax#: 92-21-99213989