Pakistan to impose two-hour delay on digital money transfers to curb fraud

The SBP maintains that the step is necessary as fraudulent cases continue to rise
 

State Bank of Pakistan introduces new rule to protect consumers from electronic fraud 

The State Bank of Pakistan (SBP) has introduced a new rule that imposes a two-hour delay on all digital money transfers in a bid to combat financial fraud.

Governor SBP revealed the measure during a meeting of the Parliamentary Finance Committee, explaining that while funds are instantly deducted from the sender’s account, the recipient will only receive the money after two hours. This window, he said, allows banks to detect and block suspicious transactions before they are processed.

According to officials, each transfer is routed through a system check during this period. If fraudulent activity is suspected, banks can intervene and stop the transaction before the money is credited to the recipient.

 

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While the move strengthens security, it has also frustrated customers who depend on instant transfers—especially government employees, small traders, and individuals making urgent payments. Critics argue that in today’s digital age, such delays complicate everyday financial dealings.

The SBP, however, maintains that the step is necessary as fraudulent cases continue to rise. Officials stress that the delay should be seen as a safeguard, not a hurdle.

Many users and experts have called on banks to adopt advanced real-time fraud detection technologies instead of slowing down transactions for everyone. They argue that smarter monitoring systems could protect customers without sacrificing speed.

 

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The new policy underscores the ongoing challenge of balancing convenience and security in Pakistan’s rapidly evolving digital banking sector.

Source: Phone World

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