SBP Two Hour Delay Protects Branchless Banking Users
SBP clarified that the recently introduced two-hour cooling period for digital fund transfers aims to strengthen customer due diligence and prevent fraudulent transactions.
SBP officials addressed media reports, emphasizing that all digital fund transfers are processed in real-time, and recipients receive the transferred money instantly in their accounts.
It applies only to branchless banking and mobile wallet users, allowing immediate deposits, while withdrawals, online payments, or top-ups become available after two hours.
SBP explained that this system, introduced in April 2023, was designed to enhance due diligence for branchless banking users and provide a higher level of transaction security.
Branchless accounts have relatively simpler registration procedures, increasing the risk of misuse, which is why the two-hour cooling period serves as a protective measure.
The cooling period also allows users to report suspicious or fraudulent activity promptly, giving banks sufficient time to intervene before transactions are completed.
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As per the SBP, the mechanism has been operational for over two and a half years and has effectively helped curb fraudulent activity in Pakistan’s digital banking sector.
Officials said that the measure does not delay legitimate transactions, providing a safety buffer to protect both customers and financial institutions while ensuring efficient transaction processing.
SBP reiterated that the cooling period strengthens trust in branchless banking and mobile wallet services by maintaining robust monitoring and ensuring comprehensive customer protection measures.
SBP highlighted that real-time credit of funds is maintained, and only transactional capabilities such as withdrawals, online payments, or mobile top-ups are temporarily restricted for two hours.
The central bank stated that this initiative aligns with global best practices in digital financial services and represents a proactive step to prevent fraud in Pakistan.
SBP concluded that the two-hour cooling period has proven effective in protecting consumers, maintaining financial integrity, and supporting the continued growth of branchless and mobile banking services nationwide.
