The State Bank of Pakistan (SBP) has introduced the Raast Participation Criteria, outlining the minimum requirements for entities interested in joining the country’s instant payment system. This initiative aims to enhance digital payment accessibility, promote innovation, and increase competition in the financial sector.
Raast: Pakistan’s Instant Payment System
Launched in 2021, Raast is a state-of-the-art instant payment system developed by SBP to facilitate secure and efficient fund transfers across Pakistan. Branded as “Instant Payments – Pal Bhar Mein, Mulk Bhar Mein,” the system offers various digital payment services, including:
- Bulk payment facility
- Person-to-person (P2P) transfers
- Person-to-merchant (P2M) payments
- Payment initiation services
Since its launch, 44 entities, including SBP-regulated financial institutions and government bodies, have joined Raast as participants.
Eligibility for Raast Participation
The newly issued criteria aim to expand Raast’s reach, allowing more individuals and businesses to conduct secure, real-time transactions. The following entities are eligible to apply for Raast participation:
- Banks and Microfinance Banks (MFBs)
- Non-bank financial institutions (regulated by SBP or SECP)
- Federal/provincial government agencies, departments, and autonomous bodies
- Public Sector Entities (PSEs)
- Corporates and private sector entities, including SMEs
- Business platforms, payment aggregators, fintechs, incubators, and educational institutions
- Entities under the licensing process with SBP that have received valid in-principle approval
Categories of Raast Participants
Access to Raast will be provided under four participation categories:
- Direct Settlement Participants (DSPs)
- Direct Non-Settlement Participants (DNSPs)
- Payment Initiation Service Providers (PISPs)
- Indirect Participants (IPs)
Onboarding Process for Raast Participation
Entities interested in joining Raast must follow a structured onboarding process:
- Application Submission: Entities seeking to become DSPs, DNSPs, or PISPs must submit applications to SBP at Raast@sbp.org.pk. Those aiming to be IPs should directly approach existing DSPs or DNSPs.
- Non-Disclosure Agreement (NDA): After receiving an application, SBP will require the applicant to sign an NDA. Upon submission, SBP will provide the Integration Specifications package and assign a Relationship Officer to facilitate the process.
- Participant Agreement: Applicants must review the specifications and sign a Participant Agreement within 10 working days.
- Integration and Testing: The applicant must:
- Submit a detailed integration project plan with timelines.
- Complete the technical integration and submit a progress report to SBP.
- Pilot Phase & Approval: After evaluating the technical setup, SBP may grant conditional approval for pilot operations. Upon successful completion of the pilot phase, commercial go-live approval will be granted.
SBP retains the right to terminate participation if an entity fails to meet the required standards at any stage. Notably, the onboarding of unregulated entities does not imply regulatory oversight by SBP.
Driving Digital Payments Forward
The introduction of the Raast Participation Criteria marks a significant step toward financial inclusion and digital payment adoption in Pakistan. By broadening access to Raast, SBP aims to drive innovation, enhance competition, and establish a robust digital payments ecosystem across the country.
