State Bank of Pakistan has issued a clarification addressing recent concerns circulating on social media regarding the two-hour cooling period for digital fund transfers. According to the central bank, while all digital transfers are processed on a real-time basis, the restriction applies exclusively to branchless banking wallets or accounts. In such cases, funds received can be accessed only after a two-hour period, a measure introduced to safeguard customers against fraudulent activity.
In its official notification, SBP emphasized that beneficiaries of digital transfers continue to receive funds in their accounts instantly, whether through conventional banking channels or branchless banking platforms. However, the difference arises in usage: for branchless banking accounts, the two-hour window prevents immediate cash withdrawal, mobile top-ups, or online transactions with newly credited funds. This policy, first introduced in April 2023, was designed as part of enhanced customer due diligence requirements. Since branchless banking typically involves simplified onboarding processes, these accounts are considered more vulnerable to potential misuse, making the cooling period a risk management tool.
SBP highlighted that this delay provides a critical safeguard by giving customers an opportunity to report unauthorized or suspicious transactions before funds can be withdrawn or diverted. Officials noted that the mechanism has proven to be an effective deterrent against fraud since its rollout two and a half years ago, reducing the likelihood of digital wallets being exploited for unlawful purposes. The regulator explained that while the measure may seem restrictive, it is an important step in balancing user convenience with financial security, particularly in an ecosystem where rapid adoption of digital finance has also been accompanied by rising threats of fraud.
The central bank reaffirmed its commitment to strengthening the safety and resilience of Pakistan’s digital financial services sector. It assured customers that ongoing improvements in regulatory frameworks, transaction monitoring, and customer awareness are being prioritized to ensure that digital platforms remain both accessible and secure. While the cooling period continues to be viewed as an essential safeguard for branchless banking accounts, SBP reiterated that all other digital transfers, including those carried out through traditional bank accounts, remain unaffected and continue to operate in real time.
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