The State Bank of Pakistan (SBP) has issued a clarification regarding the recent discussion on social media about the alleged two-hour delay in digital fund transfers. The central bank emphasized that all digital transfers in Pakistan are conducted in real time, meaning funds are credited to beneficiaries’ accounts almost instantly. However, the two-hour cooling period applies specifically to cash-out and usage of funds received in branchless banking wallets or accounts, not to the transfer itself.
According to SBP, the mechanism was introduced in April 2023 as part of enhanced customer due diligence for branchless banking systems. While digital wallets receive funds immediately, withdrawals, online purchases, or mobile top-ups against these amounts can only be carried out after the two-hour interval. This safeguard was deemed necessary as branchless accounts typically involve simplified onboarding processes, which increase the probability of fraudulent activities if immediate cash-outs were permitted.
The cooling period is designed as a preventive measure, giving customers enough time to detect and report any unauthorized or suspicious transactions. By delaying usage but not receipt, the system ensures that users gain timely access to their funds while also protecting them from potential exploitation by fraudsters.
SBP highlighted that this mechanism has been operational for nearly two and a half years and has proven to be an effective barrier against financial fraud. The central bank stressed that the instructions have worked smoothly during this period, providing both banks and customers with a reliable layer of protection.
The clarification comes at a time when Pakistan’s digital payments ecosystem continues to expand rapidly, with more users adopting branchless banking, mobile wallets, and instant fund transfer platforms. Regulators are increasingly focused on balancing innovation with security, ensuring that financial technology services grow without compromising consumer protection.
Financial analysts view this clarification as critical in maintaining trust in Pakistan’s digital payment systems. They argue that while customers may initially see the cooling period as a limitation, it ultimately strengthens confidence in the system, which is vital for long-term adoption of digital finance in the country.
As the digital economy grows, SBP’s proactive stance highlights its dual role: enabling innovation in financial services while ensuring safeguards against misuse. The bank reaffirmed that consumer safety remains a top priority and that its policies are continuously reviewed to adapt to emerging risks and market dynamics.
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