SBP forbids banks from receiving service charges on donations to PM flood relief fund

Author: APP

The State Bank of Pakistan (SBP) has barred banks of charging any service charges on donations to Prime Minister Flood Relief Fund 2022

The central bank’s Payment System Department through a circular letter directed all the issuing and acquiring banks, micro-finance banks and other payment schemes operating in Pakistan to meticulously comply with the instructions and do not charge any transaction related charges.

The PSPOD circular letter stated that it has been decided that any transaction related charges like Interchange Reimbursement Fee (IRF), Merchant Discount Rate (MDR), Merchant ID Fee, Scheme Fee, Inter Bank Fund Transfer (IBFT) Fee, or any other payment related fee that may be applicable on transactions made for donations or payments to Prime Minister Relief Fund 2022 would not be charged. Earlier in August, the SBP had set up Prime Minister Relief fund 2022 for helping population affected by torrential rains and floods across the country and advised all banks to collect funds under the PM fund. In a separate letter the banks were advised to take measures for awareness and facilitation of donors as well.

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