The State Bank of Pakistan on Wednesday has directed the commercial and microfinance banks to establish digital fraud risk management units under the supervision of senior management and compensate their customers within three working days of the reporting of fraud in case their mechanism of digital security systems is not updated.
The State Bank has reminded all the heads and chief executives of the banks to make digital banking safe.
The SBP has prepared a set of control measures to enhance the security of digital banking products and services. Banks/ MFBs are advised to develop a comprehensive plan with monthly milestones, to be implemented by December 31, 2023, duly approved by the Chief Executive Officer (CEO) and submit the same to their relevant Banking Supervision Department (BSD) in SBP, within thirty (30) days from the issuance date of the issued circular. Thereafter, a monthly progress report shall be submitted to the concerned BSD within ten (10) days from the close of each calendar month, the circular issued by the SBP stated.
Banks shall be liable to compensate the customers, in cases where they are unable to establish that the transactions were executed through the customers’ registered devices.
