The State Bank of Pakistan (SBP) has introduced new Raast Participation Criteria, aiming to expand the accessibility and efficiency of Pakistan’s instant payment system. With a focus on digital financial inclusion, the updated framework outlines different participant categories and eligibility requirements, allowing a broader range of institutions to join the Raast ecosystem.
What is Raast?
Raast is Pakistan’s first instant payment system, built on the ISO 20022 standard, designed to facilitate secure, real-time transactions. It supports a variety of payment types, including:
✅ Bulk Payments – Businesses and government agencies can instantly distribute salaries, pensions, and welfare payments.
✅ Person-to-Person (P2P) Transfers – Individuals can send and receive money instantly without delays.
✅ Person-to-Merchant (P2M) Payments – Merchants and businesses can accept digital payments effortlessly.
✅ Payment Initiation Services (PIS) – Third-party payment service providers can initiate transactions on behalf of customers, enhancing the overall digital payment experience.
Who Can Join Raast?
SBP has outlined the following eligible entities for Raast participation:
1️⃣ Banks and Microfinance Banks (MFBs)
2️⃣ Non-bank financial institutions (FMI) regulated by SBP or SECP
3️⃣ Government departments and agencies
4️⃣ Public sector entities (PSEs)
5️⃣ Private corporations, SMEs, and business platforms
6️⃣ Fintechs, payment aggregators, and educational institutions
7️⃣ Startups, incubators, and innovation hubs
Additionally, entities that are under licensing approval with SBP can also apply for Raast participation.
Raast Participation Categories
Institutions can access Raast under four different categories:
✔️ Direct Settlement Participants (DSPs): Banks and institutions with direct access to SBP’s Real-Time Gross Settlement (RTGS) system for transaction processing.
✔️ Direct Non-Settlement Participants (DNSPs): Entities that directly integrate with Raast but do not settle funds through SBP.
✔️ Payment Initiation Service Providers (PISPs): Third-party financial service providers that initiate transactions on behalf of users.
✔️ Indirect Participants: Organizations that connect to Raast via a Direct Participant, without direct integration with SBP.
Impact of the New Participation Criteria
🔹 Wider Access to Digital Payments – More businesses and institutions can now leverage Raast to enable cashless transactions.
🔹 Encouraging Fintech Growth – Startups, incubators, and fintechs can now innovate and offer new payment solutions using Raast.
🔹 Boosting Financial Inclusion – Microfinance banks and small businesses can integrate low-cost, real-time payment services, benefiting unbanked and underbanked populations.
🔹 Enhancing Competition – More players in the payment ecosystem will drive cost-effective digital payment solutions for consumers.
Final Thoughts
The Raast Participation Criteria set by SBP marks a significant step toward digitizing Pakistan’s financial landscape. By allowing banks, fintechs, government bodies, and corporates to seamlessly integrate into the instant payment system, the initiative aims to accelerate the adoption of digital transactions across the country.
As digital payment adoption increases, Raast is set to become the backbone of Pakistan’s cashless economy, promoting innovation, financial inclusion, and efficiency in the banking sector.
