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As a significant step to ensure payment security, the State Bank of Pakistan (SBP) has introduced measures to enhance the security of digital payments via mobile apps.
According to a report by Pak Observer on Thursday, a customer notification issued on December 10, 2024 states that banks and microfinance banks (MFBs) can replace One-Time Passwords (OTP) sent via SMS for financial transactions with Transaction PIN (TPIN) or Financial PIN (FPIN) systems.
The central bank has instructed financial institutions to provide free transaction alerts through push notifications, in-app notifications, and email, instead of SMS. Banks and MFBs must ensure these notifications are always enabled for their customers.
Additionally, they are required to maintain complete logs of transaction notifications, which must be made available in case of disputes or claims.
“Banks and MFBs must send transaction notifications as per the templates provided in Annexure A, replacing the earlier instructions outlined in PSD Circular No. 3, dated May 9, 2018,” the notification stated.
To safeguard customers against fraud or unauthorized transactions, banks and MFBs must compensate affected users within three working days of reporting. These measures will take effect on January 1, 2025.
