State Bank of Pakistan (SBP), the Central Bank of Pakistan, has placed an annual limit of $30,000 for cross-border transactions through debit and credit cards on an individual basis.
SBP has increased the security measures on the use of credit and debit cards after observing the misuse of their cards for cross-border transactions on a commercial basis instead of personal needs.
Many commercial banks introduced their credit cards in the past which were used by the elite and business class for commercial purposes rather than utility during foreign tours.
To ensure the right use of cards which also includes virtual cards, SBP has decided to set an annual limit of $30,000 on card-based cross-border transactions on an individual basis.
The limit for this year will start from the date of issuance of their circular and this limit would apply on an individual basis across the banking industry.
SBP asks other banks for due diligence of customers:
SBP has advised other Commercial banks to conduct proper due diligence on the individual customers at the time of their onboarding or update of risk profiles.
They have been advised to ensure that the allotment of multiple cards to a single customer is proportionate with their risk profile and should be monitored as well. Furthermore, banks should only allow those card-based cross-border transactions, which are connected with the utility or personal needs of the customers without any commercial purpose.
