SBP allows exchange companies to pay remittances digitally via Raast

The State Bank of Pakistan has allowed exchange companies to digitally disburse home remittances through Raast, as part of efforts to promote a cashless economy.

Under revised instructions, exchange companies can now credit remittances directly into beneficiaries’ bank accounts or digital wallets after obtaining prior approval from the central bank and completing Raast onboarding requirements.

The move aligns with the SBP’s Strategic Plan 2023-2028, which focuses on building an inclusive digital financial services ecosystem. The central bank has been strengthening digital payment infrastructure and updating regulations to support secure and customer-friendly cross-border transfers.

Raast, Pakistan’s instant payment system launched in 2021, will now be used by exchange companies to facilitate remittances. Beneficiaries will be able to receive funds in accounts or wallets held with banks, microfinance banks or electronic money institutions.

The SBP said the step would make remittance payments safer, faster and more efficient, while supporting the national goal of reducing cash-based transactions.

The changes were notified through Exchange Policy Department Circular Letter No. 02, dated Jan. 15. The SBP amended Paragraph 12, Chapter 7 of the Regulatory Framework for Exchange Companies to include the new provision.

The central bank has directed exchange companies to inform all relevant staff and ensure compliance with the updated instructions.