State Bank launches its own instant payment system, free person-to-person payment, and settlement service under RAAST, which helps in digitizing financial services and documenting the economy - similar solutions work elsewhere.
Launching Raast enables people to send and receive money from their bank accounts in real-time through their bank mobile application, internet banking, or over-the-counter services (such as checks, etc.). Raast provides clients with a convenient digital payment method by linking their accounts with their mobile phone numbers, thereby eliminating the need for details such as bank names and account numbers required for interbank funds.
It addresses two fundamental issues: one, the lack of interoperability of systems used for online payments and funds transfers through digital wallets owned by commercial banks, microfinance banks, and telecom companies; Second, it allows real-time transactions at almost zero cost - the main obstacle to receiving digital payments through interbank transfers is the subsequent fees.
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Therefore, many hope that its services will provide an effective infrastructure for fund transfers to induce a major digital transformation of financial services in Pakistan. Since the outbreak of the COVID-19, State Bank has taken a number of steps to promote the digitization of payments and to financially integrate the non-banking population, especially women.
Launched last year, Raast, which connects banks and digital wallets, has put Pakistan on the list of more than 50 countries that have developed instant real-time payment infrastructure and solutions. Until now, it has been used to pay cash dividends to bulk shareholders of listed companies.
After the introduction of the P2P payment system, it will be used for the payment of pensions and salaries and perceived payments to public and private sector employees. In the near future, we will see people using services for grocery shopping without the need for cash or debit/credit cards.
In addition, State Bank has announced the licensing framework for digital banks and measures for digital onboarding of bank customers with remote biometrics.
All of these are steps in the right direction and further advancing the agenda of financial inclusion and documenting the economy for tax purposes. However, digitization of payments or opening of bank
