RAAST: Pakistan's Instant Payment System — Complete Guide
Everything about RAAST — Pakistan's SBP-operated instant payment system. How to register, use RAAST ID, send money P2P, pay merchants, and what banks support it.
Pakistan’s financial landscape changed permanently when the State Bank of Pakistan (SBP) launched RAAST in 2021. RAAST (meaning “direct” in Urdu) is Pakistan’s first instant payment system — enabling real-time digital money transfers between individuals, businesses, and government entities at zero or minimal cost. If you have been sending money via IBFT and waiting for it to clear, RAAST is the upgrade you needed.
What is RAAST?
RAAST is a central payment infrastructure operated by the State Bank of Pakistan. Unlike conventional bank transfers that go through clearing cycles, RAAST processes transactions in near real-time (typically within 20 seconds) on a 24/7/365 basis, including weekends and public holidays.
Think of RAAST as Pakistan’s version of India’s UPI, the UK’s Faster Payments Service, or Brazil’s Pix — a national instant payment “highway” that all banks and payment service providers connect to.
Key Principles
- Instant: Funds arrive in seconds, not hours or days
- Always on: No banking hour restrictions — works at 2 AM on Eid
- Low cost: Transaction fees are kept near zero; designed on a cost-recovery model
- Interoperable: Works across ALL participating banks and fintechs from a single system
- Secure: Built with SBP-grade security standards, fraud detection, and transaction authorization
RAAST Phases: How It Was Built
SBP rolled out RAAST in phases:
| Phase | What Was Launched | When |
|---|---|---|
| Phase 1: Bulk Payments | Government-to-Person (G2P) disbursements — BISP, salary payments | 2021 |
| Phase 2: P2P | Person-to-Person instant transfers via RAAST ID | 2022 |
| Phase 3: P2M | Person-to-Merchant payments (QR code, merchant accounts) | 2023–2024 |
| Phase 4: Bill Payments / Request-to-Pay | Utility bills, e-commerce, request-to-pay flows | 2024–2025 |
By 2025, RAAST had processed hundreds of millions of transactions with total value in the trillions of rupees — a massive adoption milestone for Pakistan’s digital payments journey.
What is a RAAST ID?
The RAAST ID is the most user-friendly innovation in Pakistan’s payment history. Instead of requiring a 16-digit IBAN or a 10-digit account number, a RAAST ID is a simple alias that directs payments to your bank account.
RAAST ID Types
- Mobile Number-Based RAAST ID: Your 11-digit Pakistani mobile number (e.g., 0300-1234567) becomes your payment address
- CNIC-Based RAAST ID: Your 13-digit CNIC number can also serve as a RAAST ID
How to Register a RAAST ID
Via your bank’s mobile app (most common method):
- Open your bank’s official mobile banking app
- Navigate to “RAAST” or “Instant Transfer” section
- Select “Register RAAST ID”
- Choose your mobile number or CNIC as the ID
- Confirm via OTP sent to your registered mobile number
- Your RAAST ID is now linked to your bank account
Via USSD (for feature phone users): Some banks offer RAAST ID registration via USSD codes for customers without smartphones.
Important: One mobile number can only be linked to ONE bank account at a time. If you want to change which account receives RAAST payments, de-register from the old bank and re-register at the new one.
How to Send Money via RAAST (P2P)
Once registered, sending money via RAAST is straightforward:
- Open your bank’s mobile app
- Go to “Transfer” → “RAAST” or “Instant Transfer”
- Enter the recipient’s RAAST ID (their mobile number or CNIC)
- The system shows the registered account holder’s name — verify this before proceeding
- Enter the amount
- Confirm with PIN/biometric
- Transfer completes in under 20 seconds
- Both sender and receiver get instant notification
Transaction Limits (2024-25 Reference)
Note: Limits are set by individual banks within SBP guidelines. Always check your bank’s current limits.
| Limit Type | Typical Range |
|---|---|
| Per transaction limit | PKR 25,000 – PKR 1,000,000 (varies by bank) |
| Daily transaction limit | PKR 100,000 – PKR 2,500,000 (varies by bank) |
| Monthly limit | PKR 500,000 – PKR 10,000,000 (varies) |
Banks typically have tiered limits based on account type and KYC level. A fully verified (Asaan Account upgraded to full KYC) account gets the highest limits.
RAAST P2M: Paying Merchants
The Person-to-Merchant (P2M) functionality allows customers to pay businesses instantly using RAAST.
How P2M Works
QR Code Payment:
- Merchant displays a static or dynamic RAAST QR code at point of sale
- Customer scans with their bank app, enters amount, confirms
- Merchant receives funds instantly
- No card machine needed, no 2–3 day settlement wait for merchants
RAAST Merchant ID:
- Businesses can register a RAAST merchant ID
- Customers can pay by entering the merchant ID directly
- Available for e-commerce, utility payments, and physical retail
Benefits for Merchants
- Zero MDR (Merchant Discount Rate) on RAAST transactions — unlike card payments which charge 1–2%
- Instant settlement (T+0) vs card payments (T+2 or T+3)
- No expensive POS terminal required for small businesses
RAAST for Bill Payments
SBP has integrated RAAST with major utility and government payment flows. Through RAAST-enabled bank apps, you can pay:
- LESCO, KESC, MEPCO, FESCO, PESCO electricity bills
- SSGC, SNGPL gas bills
- PTCL, Jazz, Zong, Telenor telecom bills
- KMC, WASAs water and municipality bills
- FBR tax payments (income tax, sales tax challans)
- BISP/Ehsaas payments received via RAAST
Participating Banks and Fintechs (2025)
RAAST participation has grown rapidly. By 2025, virtually all scheduled commercial banks in Pakistan are connected to RAAST. Key participants include:
Major Commercial Banks: HBL, UBL, MCB, Allied Bank, Bank Alfalah, Meezan Bank, Habib Metropolitan, Askari Bank, Bank Al-Habib, Faysal Bank, Standard Chartered Pakistan, NBP, Silk Bank, JS Bank
Digital Banks and EMIs: Nayapay, Sadapay, Easypaisa Bank (Telenor Microfinance Bank), JazzCash (WMBL), HBL Konnect, UBank
Fintech Wallets (RAAST Integration): EasyPaisa, JazzCash, NayaPay, SadaPay — all support RAAST P2P send/receive
RAAST vs. IBFT: Key Differences
| Feature | RAAST | IBFT (Old System) |
|---|---|---|
| Speed | Near-instant (under 20 sec) | 2–24 hours |
| Availability | 24/7/365 | Banking hours + delays |
| Cost | Free/near-zero | PKR 0–200 (varies by bank) |
| Identifier | Mobile number / CNIC | IBAN (complex 24-digit number) |
| Settlement | Real-time gross settlement | Batch clearing cycles |
| Interoperability | Full (all RAAST members) | Limited (some bank pairs) |
Security Features in RAAST
SBP has built robust security into RAAST:
-
Pre-transaction name display: Before confirming any transfer, you see the registered account holder’s name. Always verify this matches your intended recipient.
-
2-Factor Authentication: Every transaction requires PIN + OTP or biometric confirmation.
-
Fraud detection engine: SBP’s RAAST infrastructure monitors for unusual transaction patterns.
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No SMS-only transfers: Unlike some informal systems, RAAST requires full app/channel authentication.
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Dispute resolution: SBP mandates banks to have RAAST dispute resolution mechanisms for erroneous transfers.
Common Questions About RAAST
Q: Is RAAST free? RAAST infrastructure is designed at “cost recovery” rates. Most banks currently offer RAAST P2P transfers for free. Some may apply nominal charges — check your bank’s schedule of charges.
Q: Can I use RAAST from overseas? If you have access to your Pakistani bank’s mobile app internationally and your mobile number is active, yes. However, OTP delivery to international numbers can be inconsistent — use app-based authentication instead.
Q: What if I send to the wrong RAAST ID? Always verify the name that appears after entering the RAAST ID. If you send to the wrong account, contact your bank immediately — recovery is possible if the recipient hasn’t withdrawn, but is not guaranteed.
Q: Does RAAST work for corporate accounts? Yes. RAAST P2M is specifically designed for businesses. Corporate accounts can receive RAAST payments via merchant ID or QR code.
RAAST and Pakistan’s Digital Finance Goals
RAAST is central to SBP’s National Payment System Strategy goal of bringing 65%+ of Pakistanis into formal digital financial services. Before RAAST:
- 60%+ of the adult population was unbanked
- Cash dominated transactions even among banked individuals
- Digital payments were expensive and slow
With RAAST, even someone with a basic bank account (Asaan Accounts requiring only CNIC + biometric) can send and receive money instantly using just their mobile number — no banking jargon required.
By 2025, RAAST had onboarded over 50 million unique IDs and processed billions of rupees in transactions monthly — a transformational shift in Pakistan’s financial infrastructure.
Key Takeaways
- RAAST is SBP-operated, instant (under 20 seconds), 24/7, and near-zero cost
- Your RAAST ID is simply your mobile number or CNIC — no need for long account numbers
- Register through your bank’s app in under 2 minutes
- RAAST P2M enables QR code-based merchant payments — ideal for small businesses
- Bill payments, tax payments, and government disbursements all flow through RAAST
- Always verify the recipient’s name before confirming any transfer
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