The State Bank of Pakistan (SBP) has explained the reason behind the two-hour cooling period applied to digital funds received in branchless banking wallets and accounts, saying the measure is aimed at improving customer safety and reducing the risk of fraud.
The policy was introduced in April 2023 and applies only to branchless banking wallets and accounts. According to the SBP, all digital fund transfers in Pakistan are processed in real time, meaning money is instantly credited to the recipient’s account. However, when funds are sent to branchless wallets, customers cannot use them immediately. Services such as cash withdrawals, mobile top-ups, and online purchases become available only after a two-hour delay.
Explaining the reason, the SBP said branchless wallets have a simpler verification process and relaxed account-opening rules compared to regular bank accounts. This makes them more vulnerable to fraudulent activity. The two-hour delay provides customers with a safeguard, giving them enough time to detect and report suspicious transactions before their funds are misused.
The central bank said the policy is already showing positive results, helping prevent fraud and giving users more control over their money. By introducing this buffer period, the SBP aims to protect digital transactions and strengthen trust in Pakistan’s growing branchless banking system.
This step is seen as part of broader efforts to promote financial inclusion in Pakistan while maintaining strong security standards for digital banking users.
