Merchants’ digital on-boarding – SBP revises regulations. The State Bank of Pakistan (SBP) has revised the regulations for Digital On-Boarding of Merchants. According to the SBP, in order to enable cash deposit transactions in merchant accounts, sections 4(c) and 9 (b) of ‘Regulations for Digital On-boarding of Merchants’ have been revised.
As per amended Section 4(c) of the regulations, Banks/MFBs will ensure that Merchant Accounts are only used for digital collection of payments against the provision of legitimate goods and services. However, cash deposit into these accounts are permitted subject to terms and conditions mentioned in sub section 9 (b & c) of these Regulations.
Previously, Banks/MFBs were not permitted for cash deposit transactions in these accounts, however as per amendment in section 9 (b) of ‘Regulations for Digital On-boarding of Merchants, all customers including Branchless Banking level “0″ account holders can top up/cash in their accounts up to Rs10,000 per month through biometrically verified merchants. However, cash deposit will only be used for digital payments. In addition, total cash deposit in merchant accounts will not exceed Rs 100,000 per month.