Enhancing digitization initiatives in banks/MFBs

SBP’s draft circular on ‘Enhancing digitization initiatives in banks/MFBs’ was sent to PBA, requesting feedback from banks on the instructions intended for circulation by SBP regarding digitization of corporate payments. SBP had issued the regulatory instructions to facilitate and promote digitization in the banking sector through usage of digital channels for banking and payment services and to facilitate small businesses/corporates, encouraging them to adopt digital means of payments.

Members’ feedback was reviewed by PBA’s Working Group on Digital Banking and submitted to SBP in October 2021.

To further discuss digitization of corporate payments and to overcome the challenges posed by the circulation of open cheques, FBR held a joint meeting with PBA and SBP in November, 2021 where a committee was formed to finalize a road map for digitization of corporate payments with an emphasis on Future Value Transaction (FVT).

PBA was subsequently also asked to provide feedback from its members on the comments given by the Digitization Committee. PBA Members’ observations were sought and sent to SBP on December 17, 2021.