SBP removes transactional limits for Raast app payments

The State Bank of Pakistan (SBP) has decided to remove all transactional limits on its online payment app Raast, in a bid to boost digital banking.

The latest measure from the central bank to facilitate Raast users will come into effect from April 1, read an SBP circular.

However, it said financial institutions are free to set their own maximum limits for transactions, depending on their assessment of customers' risk profiles, as long as the limit is not under Rs.200,000/- per transaction.

“Banks/MFBs/EMIs may however set in their system Raast transaction limits for their customers based on their risk profile in compliance with the relevant AML/CFT requirements," the SBP said.

As per previous rules, "customer transaction limits for Raast payments shall not be less than Rs.200,000/- per transaction or the transaction limits applicable as per the account type and prescribed by SBP from time to time."

The central bank also said the aggregate customer limit assigned to Raast payments should not be less than their Interbank Fund Transfer (IBFT) limit, while available transaction limits should be shown in their mobile apps or internet banking portals.

SBP directed banks to ensure that all technical and operational arrangements to implenent new rules should be in place before March 21.

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It also said banks should ensure strict compliance with PSD Circular No. 01 of 2021 by providing customers with the option to increase or decrease the transaction limits via their mobile apps/internet banking portals, no later than April 10, 2022.

It reiterated that banks should put in place robust internal controls and strong risk mitigants to prevent fraudulent activities and misuse of transaction limits of the Raast system at their end.

Raast is meant to offer an instant, reliable and zero-cost digital payment system to customers.

Last month, the SBP announced implementation of Raast’s Person-to-Person (P2P) payment services with the objective of promoting digital financial services and financial inclusion.

Through P2P payment services, customers can send and receive funds using either their International Bank Account Number (IBAN) or Raast ID. Initially, customers will able to use their registered mobile numbers as their Raast ID and link it to any of their bank accounts to conveniently receive funds.