“Raast P2P Service” – Pakistan ‘s First Instant Payment Method Launched by SBP Islamabad
State Bank of Pakistan has Launched the Pakistan ‘s First Instant Payment Method “Raast” which is Fast , Secure , Free and Reliable Digital Payment. In Raast System , People Now Don’t have to Remember their Long Bank Account No . Instead they will Use their Mobile No as a Raast ID to Transfer and Received Payment in their Accounts.
Raast Instant Payment System, a P2P service Launched by the SBP Islamabad with aim to Provide a convenient and hassle-free digital fund transfer service to customers.SBP Raast P2P service will also provide an efficient and enabling payments infrastructure that would a Good Step towards the digitisation of the economy. Raast Payment System will also promote the digital financial services in the country.
Raast is being developed in partnership with Karandaaz in Pakistan and will be implemented in stages. Prime Minister Imran Khan introduced the first phase of Raast, Bulk Payments, in January 2021.
Reasons For Low Electronic transactions in Pakistan
There are Many Reasons For Low Electronic transactions in Pakistan Listed Below:-
- low banking penetration,
- lack of trust and awareness of digital payment methods
- limited interoperability,
- difficult accessibility and high cost of transactions.
The Real Time Gross Settlement System (RTGS) of Pakistan provides instant payment settlements for large value and corporate transactions only
What Does Raast ID Means?
During A Press Conference held on Thursday by SBP Officials. They Said that Raast—an Urdu word that means correct and direct—offers an instant, reliable and zero-cost digital payment system to the people of Pakistan.
State Bank of Pakistan Official Said that Launch of Raast P2P service will Provide convenient and hassle-free digital fund transfer service to customers.It will Encourage the People Towards Making Digital Payments and Purchasing.
How a Customer use Raast ID For Making Payment?
In Order to Use Raast ID instead of Using Long Bank IBAN Number, Customer can use their Registered Mobile Number with their Accounts to Send and Received their Payments.
For This Case , Customer have to Link their Bank Accounts with their Registered Mobile Number to create Raast ID by Using their Bank Application, Internet Banking or By Visiting their Bank Branch.
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.
Raast provide a cheap and universal access to all players in the financial industry including commercial banks, microfinance banks, government entities and fintechs (EMIs & PSPs).
Instructions to Banks By SBP Islamabad
The State Bank of Pakistan SBP has Instructed all Bank to Provide Raast Instant Payment through atleast three customer channels including mobile application, internet banking and branch counters.
The Central Bank of Pakistan Also Directed the Banks to Credit the Amount Transfers to Customer Account with in 20 Seconds made thorough the Raast Instant Payment Method.
IS Raast P2P service is Free or Not?
No, there is No Fee For Using Raast P2P service. In order to Promote the Digital Transactions, SBP Asked the Banks Not to Impose any any charges on Raast related services and all transactions conducted through Raast would be free for end customers. To facilitate banks in this regard, SBP will also offer free-of-cost Raast services to banks.
IS there any Minimum Transaction Limit in Raast P2P service?
In order to Promote the Raast Instant Payment, there is No Minimum Transaction Limited Imposed by the Banks. However, The Maximum Transction Limit of PKR 200,000 per transaction or higher depending on the bank’s assessment of the risk profile of the customer are Allowed by the Bank.
The Central Bank of Pakistan has Advised the Bank to Take All measures encourage their customers to use Raast services and facilitate them in its usage.
Aims of Raast Instant Payment System:-
Raast Instant Payment System is Launched to Encounter Following Problem:-
- Limited Interoperability:- Financial institutions have difficulty connecting to each other due to a lack of necessary central infrastructure.Raast System is Launched to Interconnect the Retailer with the Customer.
- End users are charged high fees for transferring money digitally, making digital payments inaccessible for a large portion of the population. Raast System is Started to Reduce the High Cost of Digital Payments to End User.
- Raast System is Launched to Make the Process of Online Transactions and Purchasing easy and Understandable For the Customer.
- Raast System is Started to Make the Online Payment and Infrastructure Secure and Easy.
Benefits of Raast Instant Payment System:-
The Major Benefits of Raast Payment System are Following:-
- Instantaneous payments
- Low-to-no transaction costs for end users
- Full sector-wide interoperability
- Customer-centric innovative products/services
- Reliability and enhanced security