PSD Circular No. 03 of 2014

October 23, 2014

The Presidents/Chief Executives

All Financial Institutions/

Clearing Houses/ATM Switches

Dear Sirs/Madam,

Rules for Payment System Operators and Payment Service Providers

Payment System Operators (PSOs) and Payment Service Providers (PSPs) are important components of Financial Market Infrastructure (FMI) of the country. PSOs and PSPs help in developing an environment for efficient, convenient and secure processing of payment transactions. The PSOs and PSPs may include following:

1. Electronic Payment Gateway Service Providers to perform routing and switching of payment transactions/messages to facilitate:

a. e-Commerce

b. Remittances

c. Point of Sale (POS) network

2. Clearing Houses to provide payment related Clearing services.
3. ATM Switch Operators to provide routing of ATM transactions through inter-connectivity between the participants of the network.
4. Any other Payment System Operator or Payment Service Provider as may be permitted by SBP.

As part of a broader strategy to create an enabling regulatory environment and bring systemic harmony, introduce standardization and setting benchmarks, Rules for PSOs and PSPs have been developed and are being issued by State Bank of Pakistan.
In case of any queries/clarifications, please do not hesitate to contact Payment Systems Department at [email protected]

Please acknowledge receipt.

Encl: Rules for Payment System Operators and Payment Service Providers.