December 3, 2022

The new policy of the State Bank of Pakistan, how much purchase is possible abroad with a credit card?

Along with this, instructions have been given in the Foreign Exchange Manual for obtaining services on behalf of firms and companies.

foreign currency

Under its new policy, the State Bank has issued new instructions to the banks, setting limits on online or digital payments abroad by debit and credit card holders of Pakistan banks.

In this regard, according to the circular available with Urdu News, the banks have been instructed by the State Bank to ensure that the use of credit or debit card of the customers is according to their need and profile.

Under its new policy, the State Bank has issued new instructions to the banks, setting limits on online or digital payments abroad by debit and credit card holders of Pakistan banks.

According to the circular issued on November 8, the State Bank of Pakistan observes that debit/credit cards are being used for transactions that do not match the profile of the person concerned or these cards are being used for commercial purposes. are happening

The State Bank has advised banks to ensure that the use of debit/credit cards for international payments is tailored to the individual characteristics of the cardholders and only for their personal needs.

How many annual purchases can be made on a credit card?

In this regard, it has been stated in the State Bank circular that to ensure fair use of credit cards, including virtual cards, it has been decided to set an annual limit of 30,000 dollars per person on cross-border card transactions. For this purpose the limit for the current year shall be reckoned from the date of issue of this circular. This limit will apply to everyone in the entire banking industry.

It is emphasized that the purpose of debit/credit cards is to facilitate the payment of personal transactions by individuals. The use of these cards as well as domestic and international payments through them should be limited to the individual characteristics of the cardholder. It shall be the responsibility of the user to ensure that his annual limit is not exceeded at any point. However, banks should monitor each individual on a holistic basis.

According to the circular, a framework is available in the Foreign Exchange Manual on the use of overseas cards related to business in the legal realm, whereby those seeking digital services can use the facility within the relevant financial limits specified in the said framework. Can specify a bank.

Along with this, instructions have been given in the Foreign Exchange Manual for obtaining services on behalf of firms and companies.

According to Chapter 14, Para 14A of the Foreign Exchange Manual, a bank or dealer shall allow a foreign exchange equivalent of up to $400,000 per annum to a company established in Pakistan for trade. However, that company will be able to pay up to Rs 40 lakh to an unregistered company abroad.

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