Central Bank committed to enhance security of branchless banking users
The State Bank of Pakistan (SBP) has
clarified that its recently implemented two-hour “cooling period” for digital
fund transfers is designed to bolster customer protection, enhance due
diligence, and curb fraudulent activities in the country’s rapidly expanding
digital finance ecosystem.
Responding to media reports, SBP
officials emphasized that all digital fund transfers are still processed in
real time—recipients receive the funds instantly in their accounts. However,
for branchless banking and mobile wallet users, while deposits are immediately
available, withdrawals, online payments, and mobile top-ups can only be
accessed after a two-hour interval.
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The central bank explained that this mechanism, introduced in April 2023, aims to strengthen oversight for branchless banking accounts, which typically have simpler registration requirements and are therefore more susceptible to misuse. The two-hour delay provides a critical safeguard, allowing users to flag suspicious activity before funds can be withdrawn or used.
According to SBP, this security
feature—operational for over two and a half years—has already proven effective
in reducing fraud and unauthorized transactions across Pakistan’s digital
banking network. Officials stressed that legitimate transactions remain
unaffected, as the system ensures instant crediting of funds while introducing
a controlled pause for certain actions.
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The SBP further noted that the initiative aligns with global best practices for digital financial services, enhancing confidence among users and reinforcing the resilience of Pakistan’s financial infrastructure.
By maintaining real-time fund
transfers while integrating protective measures, the SBP said, the two-hour
cooling period continues to safeguard consumers, uphold financial integrity,
and foster the sustainable growth of branchless and mobile banking across the
country.
Source: https://newztodays.com/