Daily Lankadeepa E-Paper

Banks watchful of foreign currency transactions via cards

„Individual entities have started imposing limits on foreign currency transactions via debit and credit cards „No collective decision by banks yet, but would depend on the volume and value of transactions „But says no limitations would be imposed on trans

By Shabiya Ali Ahlam

Local banks have raised concerns on the usage of debit and credit cards for foreign currency transactions due to the current volatility in the market, and have started taking on their own a set of measures to minimise the hit on the sector.

Sri Lanka Bank’s Association (SLBA) yesterday told Mirror Business that individual banks have taken necessary measures to limit foreign currency transactions via debit and credit cards.

“No common decision has been made but there were concerns raised with regard to debit and credit card transactions overseas. This was due to the recovery process and billing issues among other areas of concern,” said SLBA Chairman Lakshman Silva.

Silva pointed out that banks are concerned with the usage of debit and credit cards for overseas transactions largely due to two reasons.

The first is the issue with electronic fund transfer facilitator Visa. As it pays the rates as per rates published by the Central Bank of Sri Lanka (CBSL), the difference in rates that prevailed in the market some time ago created an issue for banks.

“Now it is back to normal but earlier when Visa settles to the bank with the CBSL published rate, we had to settle at a different rate from the customers which was creating a problem for us,” he explained.

The second is that due to import restrictions, banks are watchful and want to ensure that the cards are not used for unacceptable foreign currency transactions.

Furthermore, Silva stated that a collective decision on settling limits would depend on the value and volume of foreign currency transactions happening through the cards.

MIRROR BUSINESS

en-lk

2021-09-17T07:00:00.0000000Z

2021-09-17T07:00:00.0000000Z

https://dailylankadeepa.pressreader.com/article/281801402094194

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