Islamabad: Banks in Pakistan are allowed to charge fees on digital transactions of more than Rs 25000.
With the permission of the State Bank of Pakistan, remittances from one bank to another have not been possible without payment of fees.
Citizens rejected the move, saying it contradicted the vision of Digital Pakistan.
In most countries of the world, there are no charges for bank-to-bank transactions, so people prefer digital transfers.
Fees on Digital Transactions
Banks and financial service providers have been allowed to charge a minimum fee for high-value transactions, according to a State Bank of Pakistan statement.
If the total limit of digital transactions is more than 25000 in a month, service charges of up to Rs. 200 will be charged from the customers.
Low-income groups can continue digital transactions for free, but this facility will be available only by sending up to Rs 25000 a month.
If a person transfers even Rs 26000 in a small amount of money in a month, he will have to pay charges.
These charges will be levied on more than Rs 25000 per new transaction, however, banks can also increase the total amount individually.
According to the SBP directive, digital transactions between different accounts within the same bank will be available free of cost.
If the sender and receiver have an account in the same bank, they will not be charged.
The SBP says the move is aimed at enabling banks to cover the cost of facilitating digital transactions.
In this way, they will be able to facilitate electric fund transfers to customers on a permanent basis.
After each digital transaction, banks will be required to send free SMS to their customers on their mobile phone numbers.
The purpose is that they can get information about the transaction amount and the charges levied on it.
It may be recalled that the State Bank of Pakistan had last year directed banks and other financial service providers to provide free digital transaction services to consumers due to the Corona epidemic.