Prime Minister Imran Khan has launched ‘Raast’ person-to-person (P2P) payment system for instant digital transactions.
The State Bank has developed Raast digital payment system to make payments fast and cheap.
How it works: Checks take a few days to clear, as they need to be manually consolidated and cleared by a central entity.
Every bank has its own payment system, and banks aren’t really in contact with each other, so it can take a few days for the amount to be credited.
And when you transfer money directly through your bank account, the funds reach the other person instantly, but chances are you will be charged an IBFT fee.
What if there was a way to connect all the banks and automate this entire system of payments?
That’s where Raast comes in to play.
All the banks can connect through it. Making it easier for funds to transfer from one bank to another.
All you have to do is link your current bank account to your Raast ID, your mobile number, and you can instantly receive money in your account.
You can also send money to a Raast ID at a fraction of the cost.
And if you want to transfer your Raast ID to another bank account, you can easily de-link it through your account’s app and link it with your bank account.
You should know: Raast is part of the government’s Digital Pakistan initiative to include the underprivileged segments of society in the formal economy.
All payments, including salaries and pensions, will go through Raast. Including payments for financial support programs like the Benazir Income Support Program and the Ehsaas Emergency Cash program.
Raast was built in collaboration with Bill and Melinda Gates Foundation and Karandaaz, a not-for-profit promoting financial inclusion.
Big picture: Raast can be a game-changer for the Pakistan economy.
Payments through Raast can increase the national savings rate and reduce cash in circulation.
It also promotes financial inclusion by enabling payments on a system not bound by conditions like having an account in the same bank or with the same mobile service provider.