KARACHI: The State Bank of Pakistan (SBP) on Tuesday removed transactional limits for payments made through the Raast system, i.e. Raast person-to-person (P2P) payment system.
The SBP issued Circular No. 02 dated March 15, 2022 and stated that to further facilitate users of Raast services, it has been decided that effective April 1, 2022, there will be no transactional limits on the Raast system by SBP.
Banks/MFBs/EMEs may however set, in their system, Raast transaction limits for their customers based on their risk profile in accordance with relevant Anti-Money Laundering (AML)/Anti-Financing requirements Terrorism (CFT).
Further, through previous Circular No. 01 dated 03 February 2022, in accordance with paragraph 3(f) of the circular, client transaction limits for Raast payments shall not be less than Rs 200,000/- per transaction or applicable transaction limits as per account type and prescribed by SBP from time to time.
The aggregate customer limit assigned to Raast payments must not be less than the Interbank Funds Transfer (IBFT) limit, the SBP said.
The aggregate limit should be communicated to customers and the available transaction limit should be shown in their mobile apps/online banking portals.
Banks/MFBs/EMIs must ensure that the above technical and operational arrangements and preparation are in place no later than March 21, 2022.
Banks/MFBs/EMEs must ensure strict compliance with PSD Circular No. 01 of 2021 by providing their customers with the ability to increase or decrease transaction limits using their mobile applications/online banking portals, at most late April 10, 2022, the SBP says.
It is reminded that banks/MFBs/EMIs must put in place strong internal controls and strong risk mitigation measures to prevent fraudulent activities, misuse/misuse of transaction limits and security risks and the security of the Raast system at their end.
The central bank has established the instant payment system of Pakistan “Raast” to provide instant, reliable and free person-to-person payment services to the people of Pakistan with the aim of promoting digital financial services and financial inclusion.
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The first phase of the system, “Raast – Bulk Payments”, was launched on January 11, 2021 and has been live since then.
The second phase of Raast, which enables instant person-to-person (P2P) funds transfers and settlements, is also being launched.
READ MORE: Prime Minister Imran launches 2nd phase of Raast payment system
Customers could send and receive funds using either their International Bank Account Number (IBAN) or their Raast ID. Initially, customers could use their registered mobile phone numbers as Raast IDs and link them to any of their bank accounts to easily receive funds.
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