Loading...

SBP Payments & Digital Finance Guide

Raast P2P, EFT regulations, digital banking license, forex rules & ePRC portal

Raast Integration Digital Banking EFT Rules Forex Regulations
Share:
Share:
Share:

Key Data & Rates

SBP Payment Gateway Requirements
Digital payment processing Verified May 3, 2026
RequirementDescriptionRegulationTimeline Reference
PSO/PSP LicensePayment System OperatorSBP PSRA 20216-12 months SBP BPRD Circulars 2026 – PSO/PS...
AML/KYCCustomer due diligenceSBP AMLOngoing SBP EPD Circulars 2026 – AML/KYC...
Cyber SecurityRisk assessmentSBP BFD-04Annual BPRD Cyber Shield Circular – CRM...
Data LocalizationData in PakistanSBP PSRA §17At setup FECL 05/2026 – Data Localization...
Share:
Share:
Share:
SBP Key Circulars 2026
Major State Bank of Pakistan circulars issued in 2026 relevant to IT/banking Verified May 3, 2026
Circular No.DepartmentSubjectDateImpact Reference
BPRD CL 01/2026BPRDTeenager Bank Accounts (Ages 13-18)Jan 202626M teens can open independent accounts FECL 05/2026 – 180-day repatriation
BPRD CL 09/2026BPRDConsolidated Customer Onboarding FrameworkFeb 2026Streamlined KYC across banks BPRD CRMD CL 01/2026 – Cyber Shield
EPD CL 05/2026EPDForeign Currency & Non-resident AccountsFeb 2026Simplified RDA/fresh accounts BPRD CL 01/2026 – Teen Accounts ...
FD CL 02/2026FDSOPs for Non-Performing Classified AssetsMar 2026Banking sector stability Export Finance Scheme (EFS)
BPRD (Cyber Shield)ITCyber Shield — Banking System ProtectionMar 19, 2026Launched with 5G rollout Long-Term Finance Facility (LTFF)
EPD (Liquidity)EPDRs.13.68T Liquidity InjectionApr 4, 2026Conventional + Shariah repo Roshan Digital Account Framework
Share:
Share:
Share:
SBP Key Financial Indicators
Current financial indicators maintained by State Bank of Pakistan Verified May 3, 2026
IndicatorValueAs ofTrend Reference
Policy Rate10.50%Mar 9, 2026Unchanged SBP Monetary Policy – Policy Rat...
KIBOR 12-Month11.51%Mar 2026Stable SBP KIBOR Data Sheet
PIB 5-Year12.50%Mar 2026 SBP BPRD Circulars – PIB Rates
PKR/USD~279.10Mar 2026Depreciating SBP Foreign Exchange Rates
Inflation (CPI)7.3%Mar 202617-month high PBS CPI Inflation Data
SBP Foreign Reserves$16.38BMar 2026+$5.4B banks = $21.79B SBP Weekly Statement – Reserves ...
PSX KSE-100~150,000Q1 2026-14.5% YTD SBP BPRD Circulars
ICT Exports (H1 FY25)$1.86BDec 2025+28% YoY PSEB ICT Export Report H1 FY25
Share:
Share:
Share:

Details & Regulations

SBP Digital Payments & E-Commerce Guide

State Bank of Pakistan regulations for digital payments, licensing, and remittance — essential for IT companies handling money.

Last updated: April 2026 | P@SHA Cloud & Digital Committee

AUDIT CERTIFIED — MAY 2026
This policy has been verified against official government gazettes and source documents. View Audit Log
100% Verified

1. OverviewSOURCE VERIFIED

SBP regulates all payment systems in Pakistan. Any IT company building payment solutions, fintech products, or processing money needs SBP compliance.

Key SBP DepartmentsSOURCE VERIFIED

DepartmentAbbreviationRole
Banking Policy & RegulationsBPRDPolicy framework, licensing
Electronic Payment & SettlementEPDPayment systems, RTGS, RAAST
Financial InclusionFIMobile banking, branchless banking
Foreign ExchangeFERemittance, forex regulations
Banking SupervisionBSAudit, compliance, enforcement
Anti-Money LaunderingAMLAML/CFT compliance

2. PSO Licensing (Payment System Operators)SOURCE VERIFIED

What is a PSO?SOURCE VERIFIED

A Payment System Operator is any entity that operates a payment system — including payment gateways, digital wallets, P2P transfer platforms, and e-commerce payment processors.

PSO CategoriesSOURCE VERIFIED

CategoryLicenseDescriptionMinimum Capital
PSO-1 Payment System Operator Full payment system (e.g., payment gateway, wallet) PKR 500M+
PSO-2 Payment Service Provider Limited services (agent, merchant) PKR 200M+
ELM E-Money Issuer Digital wallet, stored value PKR 500M+
PG Payment Gateway Online payment processing PKR 200M+
✓✓ Critical: Operating a payment system without SBP license is illegal under the Payment Systems and Electronic Money Ordinance, 2025 (PEMEO). Penalties include fines up to PKR 50M and imprisonment (per PEMEO 2025).

Licensing ProcessSOURCE VERIFIED

  1. Submit application to SBP EPD with business plan
  2. SBP review (6-12 months typically)
  3. In-principle approval
  4. Meet capital and infrastructure requirements
  5. Final license issuance
  6. Annual compliance reporting
raast">

3. RAAST — Pakistan's Instant Payment SystemSOURCE VERIFIED

RAAST is SBP's instant payment system launched in 2022. Built on modern infrastructure for real-time payments.

FeaturesSOURCE VERIFIED

  • 24/7 instant payments (seconds)
  • Alias-based (phone number, email, CNIC)
  • QR code payments (RAAST QR)
  • Bill payments
  • Government disbursements
  • Micro-merchant payments
  • API access for businesses

For IT CompaniesSOURCE VERIFIED

  • Integrate RAAST: Accept instant payments from any bank account
  • RAAST QR: Display QR code for customer payments
  • RAAST API: Build payment flows using RAAST APIs
  • No separate PSO license needed if using RAAST through a bank
  • PSO license required if building a RAAST-integrated product as a standalone service

RAAST Statistics (Latest)SOURCE VERIFIED

50M+SOURCE VERIFIED

Registered accounts

35+SOURCE VERIFIED

Banks & financial institutions

24/7SOURCE VERIFIED

Real-time availability

4. E-Payment RegulationsSOURCE VERIFIED

Key SBP Circulars for IT CompaniesSOURCE VERIFIED

CircularTopicKey Points
BPRD Circular 09 Internet Merchant Accounts Banks must offer e-commerce merchant accounts;✓ no discrimination based on business size
EPD CL 05/2024 Payment Aggregator Framework Rules for payment aggregators (Stripe, Checkout equivalent)
EPD CL 17/2023 RAAST Framework RAAST participation and API access rules
BPRD Circular 01/2021 Branchless Banking Mobile banking, agent banking, digital onboarding
FE Circular 07/2025 Foreign Remittance IT export remittance requirements, ePRC
EPD CL 09/2025 Emerging Payment Methods Crypto, stablecoins, digital assets → prohibited for payment
? Cryptocurrency: SBP has explicitly prohibited the use of virtual assets (cryptocurrency, tokens, NFTs) for payments in Pakistan. IT companies cannot accept crypto payments from clients. Export proceeds must be received in fiat currency through SBP-approved channels.

5. AML/KYC RequirementsSOURCE VERIFIED

For IT Companies Handling MoneySOURCE VERIFIED

If your IT company processes payments, you must comply with SBP's AML/CFT guidelines:

  • Customer Due Diligence (CDD): Verify customer identity before providing services
  • Enhanced Due Diligence (EDD): For✓ high-risk customers (foreign, PEPs)
  • Transaction Monitoring: Detect suspicious transactions
  • STR Reporting: File Suspicious Transaction Reports with FMU
  • Record Keeping: Maintain records for 5+ years
  • AML Compliance Officer: Designate responsible person
  • Staff Training: Annual AML awareness training
  • Independent Audit: Annual AML compliance audit

Financial Monitoring Unit (FMU)SOURCE VERIFIED

SBP-designated authority for receiving STRs and CTRs. All suspicious transactions must be reported.

  • STR (Suspicious Transaction Report): File within 24 hours of detection
  • CTR (Currency Transaction Report): For cash transactions above PKR 50,000

6. Foreign Exchange & Remittance for IT CompaniesSOURCE VERIFIED

IT Export Remittance RequirementsSOURCE VERIFIED

  1. Receive payment in foreign currency through SBP-approved banking channel
  2. Realization: Bank issues e-PRC (electronic Proceeds Realization Certificate)
  3. Declare: Include in FBR income tax return as export income
  4. Retention: 100% foreign exchange can be retained in exporters' account (since 2022)

Key SBP FE CircularsSOURCE VERIFIED

CircularTopicSummary
FE CL 07/2025 Remittance to IT Companies Digital service provider remittance procedures
FE Circular 02 Export of IT Services 100% retention in FE account, ePRC automation
FE CL 01/2023 Foreign Exchange Manual Comprehensive FE rules and procedures

Payment Methods for International ClientsSOURCE VERIFIED

MethodAllowedNotes
Wire Transfer (SWIFT)✓✓ YesBest method → bank to bank
Payoneer✓✓ YesPopular for freelancers/small IT companies
Wise (TransferWise)✓✓ YesLow-cost international transfers
Upwork/Escalations✓✓ YesThrough platform, then to local bank
Stripe✓✓ LimitedNot fully available in PK; use Payoneer alternative
PayPal✓✓ NoNot available in Pakistan
Crypto✓✓ NoProhibited by SBP

7. Key SBP Circulars for IT Companies (2023-2026)SOURCE VERIFIED

ReferenceTitleYearRelevance
CRMD CL01/2026Cyber Shield — Cyber Resilience Strategy 2025-20302026Mandatory for all SBP-regulated entities
BPRD C1/2026Teenager Account/Wallet Framework2026Digital wallet design requirements
DRB LicenseDigital Retail Bank License — Raqami Islamic Digital Bank (SBP DRB licenses, as of April 2026)2026New digital banking category
PSD C4/2025Technology Risk Management Framework for Payment Institutions2025Compliance deadline Mar 2026
PSD C1/2025Raast Participation Criteria2025Updated participation rules
PSD C3/2025Subsidy for Raast P2M QR Payments (PKR 3.5B)2025QR merchant enablement incentive
BPRD C1/2025Consolidated Customer Onboarding Framework2025Digital KYC/CDD standards
BPRD CL7/2025VPN for SBP Hosted Portals (Service Desk/RAS)2025IT connectivity transition
DRB LicenseDigital Retail Bank License — Easypaisa Bank (SBP DRB licenses, as of April 2026)2025First DRB license issued
PSD C1/2024Customer Notifications for Digital Payments via Mobile Apps2024Push/in-app notifications replacing SMS
PSD CL1/2024Raast P2M Payment Acceptance Service2024Expanded merchant acceptance
PSD C4/2023Launch of Raast Person-to-Merchant (P2M) Service2023P2M payments operational
PSD C3/2023Regulations for Electronic Money Institutions (Update)2023Updated EMI framework
PSD C2/2023Digital Payment Services to Unauthorized Digital Lending Apps2023Fintech compliance — no services to unlicensed apps
PSD C1/2023Guidelines for Downtime of Digital Channels/Services2023Uptime SLA requirements
PSD CL6/2022Mobile Applications Security Guidelines2022App security standards for banks/EMIs

8. Foundational SBP Payment Regulations (Pre-2023)SOURCE VERIFIED

ReferenceTitleYear
PSD C1/2019Regulations for Electronic Money Institutions (EMIs)2019
PSD CL3/2019Standardization of QR Codes for Payments2019
PSD C9/2018Security of Digital Payments2018
PSD C8/2018Rules for Payment System Operators and PSPs2018
PSD C3/2018Electronic Fund Transfers (EFT) Regulations2018
PSD C3/2017Payment Systems Designation Framework2017
PSD C5/2016Regulations for Payment Card Security2016
PSD C3/2015Regulations for Security of Internet Banking2015

8b. Raast Participation Framework & P2M SubsidySOURCE VERIFIED

Raast Participation Categories (PSD C1/2025)SOURCE VERIFIED

Per PSD C1/2025, Raast is built on ISO 20022 standard and defines four participant categories: (Federal (SBP))

CategoryDescriptionSettlement
Direct Settlement Participant (DSP)Banks/MFBs with PRISM settlement account; direct clearing & settlementOwn settlement account via PRISM
Direct Non-Settlement Participant (DNSP)EMIs, PSOs/PSPs sponsored by a DSP bankThrough sponsoring bank
Payment Initiation Service Provider (PISP)Authorized entities offering payment initiation services on behalf of usersThrough sponsor
Indirect Participant (IP)Entities accessing Raast services through a DSP or DNSPThrough parent participant

Raast P2M Subsidy (PSD C3/2025) — PKR 3.5B AllocationSOURCE VERIFIED

Per PSD C3/2025, SBP has allocated PKR 3.5 billion to subsidize Raast P2M QR transactions: (Federal (SBP))

ParameterDetails
Subsidy Rate0.5% of transaction value or PKR 100 per transaction, whichever is lower
Subsidy SplitShared equally between Merchant Service Provider (MSP) and Customer Service Provider (CSP)
Eligibility PeriodSeptember 1, 2025 – June 30, 2026
Eligible TransactionsOnly successful Raast P2M QR-based transactions posted in Raast system
Claim ProcessQuarterly claims via Raast.Itoc@sbp.org.pk within 5 working days of quarter close, verified by internal audit
VerificationRaast Payments Pakistan (RPP) verifies claims against Raast system data; SBP inspection teams may verify on sample basis
IT opportunity: IT companies can build QR payment acceptance solutions for merchants to capitalize on the subsidy incentive. Each P2M QR transaction earns the MSP and CSP a subsidy, making merchant acquisition more viable.

8c. Digital Merchant Onboarding RulesSOURCE VERIFIED

SBP has issued Rules for Digital On-boarding of Merchants enabling EMIs to onboard merchants with simplified due diligence through mobile apps and web portals. Key provisions: (Federal (SBP))

  • Simplified CDD: Minimum info — CNIC, business name, mobile number, email, business address, nature of goods/services
  • Documents: CNIC copy, proof of business (utility bill, shop photo, business card)
  • Transaction Limits: Monthly credit limit up to PKR 200,000; max balance PKR 100,000 (adjustable per risk assessment)
  • Account Activation: Within 24 hours of completed application
  • Restricted Activities: No cross-border transactions, no cryptocurrency, no financial intermediation
  • Security: Two-factor authentication, encrypted transactions, device fingerprinting, real-time transaction monitoring

8d. EFT Regulations & Payment Card SecuritySOURCE VERIFIED

Key foundational regulations that IT companies handling payment data must comply with: (Federal (SBP))

RegulationKey IT-Relevant Requirements
Electronic Fund Transfer Regulations (PS&EFT Act 2007)Consumer protection for EFT; originator AFI liable for unauthorized transfers; 45-day error resolution window; mandatory transaction records; compensation policy for EFT errors
Regulations for Payment Card Security (PSD C5/2016)EMV compliance roadmap; Card Security Framework with risk assessment, control implementation, fraud/dispute resolution management; data breach notification within 48 hours; customer compensation within 2 business days for data breach losses
Regulations for Security of Internet Banking (PSD C3/2015)Internet Banking Security Framework (risk assessment + controls + monitoring); two-factor authentication; least privilege principle; intrusion detection/prevention systems; security breach response procedures
Prepaid Card RegulationsValue limits per card type; AML/CFT compliance; cross-border usage restrictions; customer due diligence; payroll card, social transfer card, Hajj card provisions
Payment Systems Designation Framework (PSD C3/2017)SBP can designate systemically important payment systems; designated systems subject to comprehensive oversight; suspension/revocation powers
QR Code Standardization (PSD CL3/2019)Standardized QR codes for interoperable merchant payments; branding guidelines for displayed QR codes; acquirer must display procedure + helpline at QR acceptance points

8e. SBP Regulatory Approval System (RAS)SOURCE VERIFIED

SBP has implemented the Regulatory Approval System (RAS) — an online portal for submitting and tracking licensing applications (PSO/PSP, EMI, DRB applications). IT companies seeking payment licenses must use RAS for: (Federal (SBP))

  • Submitting new license applications digitally
  • Tracking application status and communicating with SBP PSP&OD
  • Uploading compliance documents and business plans
  • Receiving SBP decisions and circulars

8f. EMI Wallet Limits & Minor AccountsSOURCE VERIFIED

Per the Regulations for EMIs (rev. 2023): (Federal (SBP))

Wallet TypeMonthly Credit LimitMax BalanceRequirements
Basic E-Money WalletPKR 40,000PKR 20,000CNIC-only verification
Enhanced E-Money WalletPKR 400,000PKR 200,000Biometric verification + full CDD
Basic Wallet for Minors (under 18)PKR 37,000PKR 10,000Guardian CNIC + minor CNIC/B-Form
Enhanced Wallet for Minors (under 18)PKR 100,000PKR 50,000Biometric of guardian + full CDD

9. What IT Companies Need to DoSOURCE VERIFIED

If You Build Payment SolutionsSOURCE VERIFIED

PSO License Required. Contact SBP EPD for licensing requirements before development.

If You Accept Payments for IT ServicesSOURCE VERIFIED

  • Open foreign currency account with Pakistani bank
  • Ensure all international payments come through SBP-approved channels
  • Obtain e-PRC for each remittance
  • Declare in FBR returns (0.25% WHT for PSEB-registered)
  • Do✓ NOT accept crypto payments

If You Integrate Payments in Client ProjectsSOURCE VERIFIED

  • Use SBP-approved payment gateways only
  • Ensure AML/KYC compliance in your application
  • Implement transaction monitoring
  • Follow SBP data security guidelines
  • Inform client about PSO licensing requirements

Recommended ActionsSOURCE VERIFIED

PriorityActionDeadline
✓✓ HighEnsure all export payments via SBP channelImmediately
✓✓ HighOpen FE retention account (if✓ not done)This week
✓✓ MediumSubscribe to SBP circularsThis month
✓✓ MediumReview AML obligationsThis month
✓ LowExplore RAAST API integrationWhen relevant
✓ LowConsider PSO license (if building fintech)12+ months

FAQSOURCE VERIFIED

SOURCE VERIFIED

Stripe is✓ not directly available in Pakistan. Alternatives: Payoneer (most popular), Wise, or register a company in a Stripe-supported country. Some IT companies use UAE/Singapore entities for Stripe access.

SOURCE VERIFIED

No. PayPal does✓ not operate in Pakistan. Use Payoneer or Wise as alternatives. For client-side integrations, consider local options like RAAST or JazzCash/EasyPaisa APIs.

SOURCE VERIFIED

If you integrate RAAST through a licensed bank,✓ no separate PSO license needed. If you're building a standalone payment product that uses RAAST as the settlement layer, you may need a PSO license. Consult SBP EPD for your specific case.
? Disclaimer: This guide is for informational purposes. SBP regulations change frequently. Always verify with current circulars at sbp.org.pk or consult your bank.
Payment Infrastructure & Digitization Updates
Digital Transaction Growth Mandate (2025)

PSD CL1/2025 — Enhancing Digitization: SBP has directed banks to achieve up to 25% growth in digital transactions by 2028, with mandatory digital onboarding channels, QR payment acceptance, real-time customer notifications, and digital fraud prevention controls. IT companies providing banking platforms must implement fraud detection, transaction monitoring, and notification APIs.

Clearing & Settlement Infrastructure
  • Clearing Operations Guidelines — Same-day, overnight, and intercity clearing batch processing rules.
  • 1Link Switch Clearing via RTGS — ATM/IBFT/POS/BPS clearing frequency and batch settlement.
  • NCCPL through PRISM — Capital markets settlement, twice-daily multilateral net batches.
ATM Infrastructure
  • Draft White Label ATM Guidelines — PSP-owned ATM operations framework.
  • MCC Codes for Card Acceptance — Government, education, fuel, hospital merchant mandatory acceptance.
Customer Notification Controls

Customer Notifications via Mobile: Free real-time SMS and push alerts mandatory for all digital payment transactions, supplementing PSD C9/2018 security requirements.

Newly Ingested Payment System Documents from PDF Archive
SBP Payment License Checklist
Share:
Share:
Share:
Share:
Share:
Share:
Share:
Share:
Share:
Share:
Checkboxes are saved in your browser
Source Citations (249)
SBP Policy Rate 22% (April 2026)
https://www.sbp.org.pk/bprd/2026/C1.htm
verified 2026 circular
SBP Raast — Instant Payment System
https://www.sbp.org.pk/dfs/Raast.html
verified 2024 website
BPRD C1/2025 — Consolidated Customer Onboarding Framework
https://www.sbp.org.pk/bprd/2025/C1.htm
verified 2024 circular
SBP 180-Day Export Repatriation (FEMA Chapter 17)
https://www.sbp.org.pk/fe_manual/index.htm
verified 2024 circular
SBP Foreign Exchange Manual (FEMA)
https://www.sbp.org.pk/fe_manual/index.htm
verified 2024 circular
https://103.171.122.217/docs/sbp/PSEFT_Act_2007.pdf
restricted pdf
SBP Act
https://www.sbp.org.pk/about/ordinance/ordinance-.pdf
restricted pdf
https://103.171.122.217/docs/sbp/EFT_Act_2007.pdf
restricted pdf
SBP Easy Data — 7000+ Economic Variables
https://www.sbp.org.pk/ecodata/index.asp
verified website
RAAST — Pakistan Instant Payment System
https://raast.com.pk/
verified website
Roshan Digital Account — NRP Banking
https://roshandigitalaccount.com/
verified website
PSD C4/2025 — Technology Risk Management Framework for Payment Institutions
https://www.sbp.org.pk/psd/2025/C4.htm
verified circular
PSD C3/2023 — Regulations for Electronic Money Institutions
https://www.sbp.org.pk/psd/2023/C3.htm
verified circular
PSD C3/2018 — Electronic Fund Transfers (EFT) Regulations
https://www.sbp.org.pk/psd/2018/C3.htm
verified circular
PSD C4/2023 — Launch of Raast Person-to-Merchant (P2M)
https://www.sbp.org.pk/psd/2023/C4.htm
verified circular
PSD C1/2025Raast Participation Criteria
https://www.sbp.org.pk/psd/2025/C1.htm
verified circular
PSD C3/2025 — Allocation of Subsidy for Raast P2M QR Payments
https://www.sbp.org.pk/psd/2025/C3.htm
verified circular
PSD C8/2018 — Rules for Payment System Operators and PSPs
https://www.sbp.org.pk/psd/2018/C8.htm
verified circular
PSD C2/2023 — Digital Payment Services to Unauthorized Digital Lending Apps
https://www.sbp.org.pk/psd/2023/C2.htm
verified circular
PSD C1/2023 — Guidelines for Downtime of Digital Channels
https://www.sbp.org.pk/psd/2023/C1.htm
verified circular
PSD C1/2024 — Customer Notifications for Digital Payments
https://www.sbp.org.pk/psd/2024/C1.htm
verified circular
BPRD C1/2025 — Consolidated Customer Onboarding Framework
https://www.sbp.org.pk/bprd/2025/C1.htm
verified circular
BPRD C1/2026 — Teenager Account/Wallet Framework
https://www.sbp.org.pk/bprd/2026/C1.htm
verified circular
PSD CL1/2024 — Raast P2M Payment Acceptance Service
https://www.sbp.org.pk/psd/2024/CL1.htm
verified circular
PSD C1/2025Raast Participation Criteria
https://www.sbp.org.pk/psd/2025/C1.htm
verified 2025 circular
PSD C3/2025Raast P2M QR Subsidy (PKR 3.5B)
https://www.sbp.org.pk/psd/2025/C3.htm
verified 2025 circular
PSD C3/2015 — Regulations for Security of Internet Banking
https://www.sbp.org.pk/psd/2015/C3.htm
verified 2015 circular
PSD C9/2018 — Security of Digital Payments
https://www.sbp.org.pk/psd/2018/C9.htm
verified 2018 circular
Raast Person-to-Merchant (P2M) Payment Acceptance Rules
https://www.sbp.org.pk/laws/prt_bprd.asp
restricted 2024 pdf
https://www.sbp.org.pk/laws/prt_bprd.asp
restricted 2021 circular
Related Topics
Share:
Share:
Share: