The Payment Systems and Electronic Fund Transfers Act, 2007
The Payment Systems and Electronic Fund Transfers Act, 2007 was enacted to supervise and regulate payment systems and electronic fund transfers in Pakistan and to provide standards of protection to consumers. It is a federal statute and extends to whole of Pakistan. The law defines the liability of financial institutions, requires financial institutions, non-banking finance institutions and electronic money institutions to adopt certain practices in respect of transaction accounting, preauthorized transfers, error resolution and complaint resolutions. The law prescribes powers of State Bank of Pakistan and defines its supervisory role, provisions of designated payment system, and RTGS system. The statute provides the mechanism of governance arrangements, operational arrangements, requirements for issuing/non issuing of payment instruments, bona fide errors and actions taken in good faith. The Payment Systems and Electronic Fund Transfers Act, 2007 requires a financial institution, operator/EMI or an authorized party to disclose terms and conditions of transfer and documentation of transferees. The Act would override the laws of insolvency and any other law or agreement, contract, memorandum or articles of association.
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