The State Bank of Pakistan (SBP) has formally declared Raqami Islamic Digital Bank Limited as a Scheduled Bank following the issuance of a Digital Retail Bank (DRB) licence, effective February 6, 2026. The development marks a significant regulatory milestone for the institution, enabling it to operate fully under Pakistan’s regulated banking framework.
The designation as a Scheduled Bank allows Raqami Islamic Digital Bank to conduct banking business in accordance with central bank regulations, placing it alongside other licensed commercial banks operating in the country. The move signals the SBP’s continued emphasis on expanding the digital banking landscape while strengthening Islamic finance offerings within a supervised environment.
The grant of the Digital Retail Bank licence reflects the regulator’s broader strategy to modernize Pakistan’s financial ecosystem through technology-driven models. By integrating digital-first institutions into the formal banking structure, the central bank aims to expand access to financial services, reduce reliance on cash-based transactions, and promote innovation across retail banking segments.
Raqami Islamic Digital Bank has outlined plans to invest $100 million over the next five years as it prepares to commence commercial operations. The investment will support infrastructure development, technology platforms, cybersecurity frameworks, and customer acquisition strategies. The bank is positioning itself as a Shariah-compliant digital institution designed to cater to emerging financial needs in a rapidly evolving market.
According to its stated objectives, the bank intends to serve at least one million customers, focusing primarily on small and medium-sized enterprises (SMEs), freelancers, and underserved segments of the population. These groups often face barriers in accessing traditional banking services due to documentation constraints, limited collateral, or geographic limitations. A fully digital, branchless model is expected to lower operational costs while expanding outreach beyond major urban centers.
The SBP’s decision to bring Raqami Islamic Digital Bank into the Scheduled Bank category underscores the regulator’s commitment to strengthening financial inclusion through regulated innovation. Digital retail banking is viewed as a critical lever in bridging service gaps, particularly for segments operating in the informal economy or within the gig workforce.
Islamic banking remains a key pillar of Pakistan’s financial sector, and the introduction of a digital-only Islamic bank aligns with growing demand for Shariah-compliant products delivered through modern channels. By combining Islamic finance principles with app-based onboarding, digital wallets, and remote account management, Raqami Islamic Digital Bank aims to offer an alternative to conventional banking models.
The development also reflects increasing regulatory clarity around digital banking frameworks. The SBP has progressively introduced guidelines to govern digital retail banks, ensuring that new entrants meet capital requirements, risk management standards, and compliance protocols before commencing full-scale operations. Declaring Raqami as a Scheduled Bank confirms that it has met these regulatory benchmarks.
As Pakistan’s financial services industry adapts to digital transformation, new licensed digital banks are expected to play a central role in reshaping retail banking, payments, and SME financing. With a planned $100 million investment and a target customer base of one million users, Raqami Islamic Digital Bank’s entry into the regulated banking system represents a notable step in the evolution of Islamic digital finance in the country.
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