SBP introduces Pakistan’s first instant payment system 'Raast'

KARACHI: The State Bank of Pakistan (SBP) on Wednesday introduced Pakistan’s first instant Digital Payment System ‘Raast’ aimed at providing free, fast, and reliable digital person-to-person (P2P) payments service to people of the country.

SBP on Thursday issued instructions to banks to enable Person-to-Person (P2P) fund transfers in the country through Raast, Pakistan’s Instant Payment System.

Raast— an Urdu word which means correct and direct—offers an instant, reliable and zero-cost digital payment system to the people of Pakistan.

The launch of Raast P2P service will not only provide a convenient and hassle free digital fund transfer service to customers but will also provide an efficient and enabling payments infrastructure that would pave the way for digitization of the economy and promotion of digital financial services in the country,” the SBP said in a statement.

SBP has directed all banks to make Raast Person-to-Person fund transfer service available on at least three customer channels including mobile application, internet banking and branch counters.

#SBP introduces #RaastP2P Pakistan’s 1st instant payment system to offer free, fast, and reliable digital person-to-person payments service. Link mobile no with bank a/c and send & receive funds using mobile app, internet banking, or OTC. More info https://t.co/KLmxCS4Vlx pic.twitter.com/oOvqPDoCIO

— SBP (@StateBank_Pak) February 3, 2022

In order to promote the use of digital financial services in the country, banks have been advised not to levy any charges on Raast related services and all transactions would be free for end customers.

What is Raast Program?

Raast is being developed in collaboration with Karandaaz, Pakistan and introduced in phases. The first phase of Raast, Bulk Payments, was launched by Prime Minister Imran Khan in January 2021.

With the launch of Raast, Pakistan joined a select club of countries who have either launched or are in the process of launching Instant Payment Systems. Raast is fully owned and operated by State Bank of Pakistan.

How does it work?

Under Raast Person-to-Person (P2P) fund transfers and settlement services, bank customers would be able to send and receive funds in their accounts using their bank’s mobile application, internet banking or over the counter services.

For customers’ facilitation, they can set their registered mobile phone number as their Raast ID and link it to their preferred International Bank Account Number (IBAN) using the bank’s mobile application, internet banking, or visiting their bank branch.

Once a customer has set her/his mobile phone number as the Raast ID, others can send money to her/him using her/his mobile phone number without the need to know the account number or any other details.

Bank customers can still use Raast service for sending or receiving funds using their IBANs even if they do not have a Raast ID or prefer to use their IBAN.