The State Bank of Pakistan(SBP) has decided to allow third-party fund transfers through Pakistan Real Time Inter-Bank Settlement Mechanism (PRISM) with immediate effect in order increase the coverage of electronic payment systems.

According to a circular issued by the SBP on Friday, all participating banks of PRISM are allowed to send individual 3rd Party Fund Transfers (using MT 103) through PRISM System for amounts of Rs 10 million and above.

"This, limit, however, will not be applicable to National Clearing Company of Pakistan Ltd. (NCCPL) request for Fund Transfers in PRISM System," the Circular added.

It is expected that extending such a facility through PRISM would not only enhance efficient and timely fund transfers by banks, but would also result in cost reduction for such transfers for the customers of banks, the circular said.

It also advised all PRISM participants to ensure compliance with the

Customer Transfer Guidelines, Payment Systems and Electronic Fund Transfers Act 2007, PRISM Operating Rules, 2009 and all other applicable SBP rules and regulations including those related to KYC and AML/CFT.