The State Bank of Pakistan (SBP) has decided that henceforth no bank/DFI shall charge any amount under the head of 'insurance premium' (by whatsoever name called) without obtaining the consent of each existing and prospective customer in writing.
The SBP received a number of representations from the banks' account-holders/customers complaining that banks have started imposing certain premium/charges under the head of "insurance covers" on their consumer products, viz., credit cards, debit/ATM cards, etc without obtaining prior consent in writing from them.
The State Bank examined the matter and directed the banks/DFIs that in addition to obtaining consent in writing they should also use the following modes for obtaining prior consent of their customers provided proper record is maintained by banks/DFIs.
(i) Customer's consent on recorded lines via out bound/in bound call centre (after due verification), (ii) ATM screens - screen pop up before conducting transaction and after inputting pin-code, (iii) signed consent acquired with credit card application or as separate form, and (iv) IVR (integrated voice recording)
The SBP said that any violation or circumvention of the above instructions will attract penal action under provisions of BCO, 1962. It will also check compliance with the above instructions during regular inspection of banks/DFIs.