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How to Become a Raast Participant: A Step-by-Step Guide for Banks and Businesses

If you are running a business and want to integrate with Raast for digital payment, this article is just for you. In this article, we will briefly tell you how to become a Raast participant. The State Bank of Pakistan (SBP) has also introduced the Raast Participation Criteria, establishing minimum requirements for entities that wish to join the Raast instant payment system. These criteria ensure that participants have the necessary technical and operational capabilities to provide secure and efficient digital payment services to their customers.

What is Raast?

Raast is Pakistan’s first instant payment system, launched by SBP in 2021. It allows real-time, secure, and cost-effective digital transactions across the country, making fund transfers quick and hassle-free. The initiative is designed to promote financial inclusion and reduce dependency on cash-based transactions under the slogan “Instant Payments – Pal Bhar Mein, Mulk Bhar Mein.”

Since its inception, Raast has introduced multiple payment solutions, including:

  • Bulk Payment Facility – For large-scale disbursements, such as government payments.
  • Person-to-Person (P2P) Transfers – Instant money transfers between individuals.
  • Person-to-Merchant (P2M) Payments – Seamless digital payments for businesses.
  • Payment Initiation Services – Enabling businesses and financial institutions to facilitate transactions for their customers.

Currently, 44 entities, including banks, financial institutions, and government organizations, are part of the Raast network.

Expanding Raast Participation

To broaden the reach of Raast and promote digital transactions across Pakistan, SBP has introduced the Raast Participation Criteria. This framework enables a diverse range of financial and non-financial institutions to integrate with the system, fostering innovation and competition in the digital payments market.

Who Can Apply for Raast Participation?

Entities eligible to participate in Raast include:

  1. Banks and Microfinance Banks (MFBs)
  2. Non-Bank Financial Institutions (NBFIs) – Includes Financial Market Infrastructures (FMIs) regulated by SBP or SECP.
  3. Government Organizations – Federal/provincial government agencies and autonomous bodies.
  4. Public Sector Entities (PSEs)
  5. Private Corporations and SMEs – Companies engaged in commercial transactions.
  6. Business Platforms & Fintechs – Including payment aggregators, educational institutions, incubators, and startups in the financial technology space.
  7. Entities in the Licensing Process – Organizations with in-principle approval from SBP can also apply.

Participant Categories in Raast

Eligible entities can integrate with Raast under four main categories:

  1. Direct Settlement Participants (DSPs) – Entities that settle transactions directly with SBP.
  2. Direct Non-Settlement Participants (DNSPs) – Entities with direct access but without settlement authority.
  3. Payment Initiation Service Providers (PISPs) – Entities facilitating digital transactions.
  4. Indirect Participants (IPs) – Entities accessing Raast through DSPs or DNSPs.

How to Become a Raast Participant

Entities interested in joining Raast must follow a structured onboarding process:

  1. Application Submission – Applicants must email Raast@sbp.org.pk to express their interest.
  2. Non-Disclosure Agreement (NDA) – After receiving the application, SBP will request the applicant to sign an NDA.
  3. Integration Specifications & Agreement – SBP provides technical guidelines, and applicants must sign a Participant Agreement within 10 working days.
  4. Implementation & Testing – Participants must submit an integration project plan, complete technical requirements, and conduct pilot operations.
  5. Final Approval & Go-Live – Upon successful pilot testing, SBP grants approval for commercial launch.

Key Considerations

  • SBP reserves the right to terminate the application at any stage if progress is unsatisfactory.
  • Onboarding as a Raast participant does not imply SBP regulation of an entity.

Impact of Raast Expansion

The expansion of Raast participation is expected to:

  • Increase digital payment adoption nationwide.
  • Promote financial inclusion and reduce cash dependency.
  • Encourage competition and innovation in the digital payments sector.
  • Provide businesses and consumers with a fast, secure, and cost-effective payment solution.

With the implementation of these new participation criteria, SBP aims to significantly enhance Raast’s accessibility, enabling a more digitally connected and financially inclusive Pakistan.

 

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