SBP Extends Interbank Settlement of Foreign Card Transactions by 5 Months

The State Bank of Pakistan (SBP) has decided to extend the interbank settlement of card-based cross-border transactions by another five months.

“It has been decided to extend the validity of this permission till December 31, 2023”, the SBP said in a circular on Monday.

Previously, the central bank permitted commercial banks to acquire US Dollars via interbank channels for the settlement of card-based cross-border transactions through International Payment Schemes (IPSs) on May 31, 2023.

The facility was initially offered for two months and expired on July 31, 2023. SBP has opted to keep the system of purchasing dollars from the interbank market for card payments for another five months. The date has been extended till December 31, 2023.